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12 January 2018
Insurtech startups are disrupting the insurance landscape, bringing access to insurance applications and services right to the desktops or mobile devices of consumers, eliminating the need to go to brick-and-mortar insurers or carriers, while cutting the costs of insurance and even making it possible to acquire policies for one hour period. Below are some major insurtech companies currently recognized in the industry.
A Cambridge, Massachusetts-based online car insurance assistant, Everquote was founded in 2011 by Seth Birnbaum and Tomas Revesz for comparing rates cited by over 70 insurance providers while presenting proposals to customers. Thus, to make a long story short, Everquote is about providing quotes from other insurers from one single pool to find the best solution out of wide choice.
Customers are offered a user-friendly interface for interacting with the database, as they fill out the form on the website entering the information and parameters to sort the quotes, and the insurance proposals are listed according to the preferences specified by the customers. Everquote charges no fees for its services, and, as such, ensures no refund for cancellation, which means that insurance holders will have to discuss the refunding policy with the insurers directly.
Cuvva, a Scotland-based UK car insurance fintech startup, was founded by James Billingham and Freddy Macnamara in 2014 after the concept was first formulated in 2013 by Macnamara, who expressed his discontent with the absence of insurance service providers for drivers taking a car for lease for several hours. Cuvva is accessible to customers through the dedicated mobile app that was downloaded more than 100 thousand times as of April 2017.
The insurance structure of Cuvva is specifically tailored to drivers taking cars for short lease or planning to use the car intermittently or rarely. Cuvva charges a fee for every insurance cover offered and the minimum insurance period may be as short as one hour with the cover starting from 7.80 pounds. City A.M., a London-based business-focused newspaper awarded Cuvva the status of Fintech Company of the Year in November 2017.
Lemonade is a New York-based property and accident insurance carrier providing insurance for homes, apartments, co-ops and condominiums. Lemonade is an insurtech startup launched in 2016 and founded by Daniel Schreiber and Shai Wininger in April 2015. Potential insurants may access the service of Lemonade through dedicated mobile and desktop applications available both for iOS and Android devices. The company implements technologies like artificial intelligence and chatbots instead of human-aided services, which eliminates the need to employ brokers, thus, saving the costs for the business.
Lemonade appropriates the 20% fee of the customer’s premium and the remaining 80% is used to pay claims and for purchasing reinsurance. The premiums that were not claimed over the insurance period are transferred to the charities or non-profit organizations, selected by the customer during the subscription process under the “Giveback” program of the company. “Giveback” program is a social initiative started by Lemonade in a move to transform the insurance from a necessary evil into a social good. When apply for an insurance, users specify in the registration form where they would like to send the unclaimed premiums or underwriting profits. The list of non-profits includes such entities as Water, Citymeals-on-wheels, New Story, Robin Hood Foundation, Women in Need (WIN), ACLU, American Red Cross and more.
Claims are filed through chatbots of Lemonade based on high-end innovative artificial intelligence technologies offering comprehensive and efficient approach to claims settlement. One claim was settled by the bot within record three seconds. Lemonade became the only insurance company in May 2016 to receive B-Corporation certification, a certification provided by B Lab, a global organization ensuring compliance of companies with social sustainability and environmental performance standards.
Insureon, a Chicago-based insurance agency, was launched in 2011 as a fintech company providing access for small to medium-sized business to insurance quotes from numerous carriers in the property and casualty insurance market. Businesses may select from the list of insurers using the digital platform of Insureon instead of visiting physical locations of insurance agencies and brokers. Insureon works with over 40,000 small businesses and provides general liability, professional liability insurance services, as well as educational materials for business owners to help them increase their awareness and understanding for making well-though choices and decisions. In August 2014 Insureon was ranked as No1 insurance company in the list of ‘Inc 500’ report, coming on the 107th place in the overall list of multi-industry companies.
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