The number of Italian startups turning to the insurance industry with their technological solutions is growing. Insoore and InsurEngines are two companies that founded a suitable jump-start in the event-platform ScaleIT 2018, fourth edition of the event that took place in Milan on 17 and 18 October, an event that has become a reference point for international investors interested in discovering and possibly investing in the best growing companies in our country.
Participating in the meeting event with the best international investment funds (this year were over 30) requires innovative companies to overcome a stringent selection: Insoore and InsurEngines are among the 15 identified this year among several hundred, and the only two insurtech ones.
An opportunity, therefore, for the two companies to find investors and funds capable of accelerating growth, but also to achieve greater visibility, in a global market of insurtech, which is now quite vibrant both worldwide and in Europe. Investors (traditional venture capital, re-insurance venture capital and corporate venture capital) increase, will even be fourfold within 5 years, says CB Insights, rising from 53 in 2012 to 217 in 2017, ie fourfold, 30% annual growth. According to a transaction counting, since 2012 more than 700 insurtech investments have been made with a value of almost 9 billion dollars of committed capital.
What are the key tricks that Insoore and InsurEngines can use to attract these financial investors?
Key words for InsureEngines are Big Data and Machine Learning.
The company has in fact developed an “intelligence” for big data analysis, specialized in the insurance sector, combining predictive models with machine learning, and therefore with the ability of the software to ‘learn’, i.e. to improve and progressively refine its performance on the basis of an ongoing update of the data acquired. Thanks to this technology, InsurEngines can be used in a variety of business environments and insurance processes, focusing in particular on applications for IoT and Instant Insurance. Some of its advantages are the speed of implementation and the ability to analyze unstructured data, of various formats (including images) originating from different sources.
According to Juniper Research, insurance premiums generated by insurtech could reach $406 billion by 2023, compared to the current $187 billion, and the technology indicated as the most disruptive in the next five years is Artificial Intelligence, which will be widely exploited by the vast majority of insurers, especially for claims management.
InsurEngines operates in this environment and is obviously a company that can attract a lot the investors (including corporate venture capital), but also directly in the Companies, as a technology ready to apply.
Insoore, on the other hand, operates in a more specialized field, again in the B2B, offering insurance companies an innovative system for capturing vehicle images by leveraging crowdsourcing, or through a platform that connects companies with thousands of detectors to create photographic documentation of insured vehicles, both Assumtive and Crash.
In a nutshell: the insurance companies carry out through the platforms a request for photographic detection of the condition of a vehicle. Registered users who are in the area surrounding the vehicle in question take charge of the request within two hours, and take photos of the vehicle within the next 4 hours (the website also indicates how to take such photos) and send them via smartphone. If these photos comply with the acceptance criteria, the insurance company accepts the detection and Insoore transfers the reward to the user’s account. Throughout the application.
We have already discussed about Insoore, a name that is the re-branding of Whoosnapp, a while ago on the occasion of an investment of 1.3 million euros received by FocusFuturo, Business Angel (including the footballer of Rome Stephan El Shaarawy), some well-known entrepreneurs and LVenture Group.
The trump card of this young company is the innovation of the service model proposed, defined as ‘photo as a service’, which allows companies to make the current report faster and cheaper, thus improving the user experience with respect to claims and subscriptions of new policies. Currently, insurance carriers spend a great deal of a client’s premium on handling claims and incur a very high cost due to fraud: any technology that allows these processes to be improved, ensuring fast turnaround, control, cost reduction and greater customer satisfaction, is likely to encounter the least resilience to be adopted.
Indeed, this young company has already proved its ability to enter the insurance industry: the company has already entered into partnerships with several companies in Italy and worldwide, thanks also to an agreement with OCTO Telematics.All rights reserved