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Analyzing 2017 filings of startup insurers. This week in insurance tech.
Hi there,

Earlier this month, I was reading the annual Swanepoel Trends Report which reports on the 10 biggest trends facing the real estate industry in 2018. 

At the top of the list was increased investment into real estate technology. While previous real estate tech companies focused on updating legacy systems for property management in commercial real estate or building aggregation platforms for residential real estate, the space has since expanded to include a much broader array of technologies and business models.

As Redfin CEO Glenn Kelman writes in the foreword, "(No startup) so far as I know is vying to build another online portal. No company in a decade has tried to do that."

The continued evolution of real estate technology will have an increasing impact on the insurance industry. Already digital mortgage platforms like Blend and Roostify are integrating with homeowners insurance companies and startups. Property and vacation rental management platforms like Cozy and Vacasa are striking one-off insurance partnerships. And last week, Qualia, which provides title settlement software and integrates with title insurance providers like Stewart, raised $33M.

Convergence between the worlds of real estate and insurance startups is also happening offline. For example, property developers, landlords, and associations like LeFrak, Stonehenge, and NYC's Rent Stabilization Association are recommending renters and surety products offered by startups to tenants. 



And this is not a US-specific trend. Bloomberg last week reported on Brazil-based startup QuintoAndar, which acts as a broker, guarantor, and property manager. The startup, which partnered with insurer BNP Paribas Cardif in 2015, is solving a big pain point for Brazilian renters by using cheaper insurance to undercut brokers. Meanwhile, Belgium's leading property website, Axel Springer's Immoweb.de, recently partnered with Qover to launch insurance products aimed at landlords.

That's not to say its easy. According to a recent survey, 42% of real estate organizations still use spreadsheets and/or paper in some critical business capacity. And the graphic below from a conference we attended shows just how confusing it can be to navigate partnerships with real estate incumbents.



Still, it appears cross-industry pollination between real estate technology and insurance is still very early in its development. Expect more to come here.

Chubb goes digital in Southeast Asia

Chubb struck a new partnership with Grab as it looks to broaden its growth opportunities in Southeast Asia. As part of the partnership, "the companies will also explore leveraging data technology from Grab's platform...to offer insurance solutions personalized to the specific needs of different private-hire vehicle drivers in Southeast Asia."

Recall other recent partnerships by Chubb in Southeast Asia:

DBS Bank: 15-year exclusive bancassurance deal covering Singapore, Hong Kong, Taiwan, Indonesia and China launched in January 2018. DBS counts 6M customers through its branch and digital distribution network.

Traveloka: In November 2017, the two partnered to offer railroad travel insurance through Traveloka's mobile app and website. Traveloka, which raised $350M from Expedia, JD.com, and Hillhouse Capita in July 2017, had previously worked with Chubb in offering travel insurance for airline and hotel ticket reservations since 2015.

Startup insurers

Adrian Jones and Matteo Carbone analyzed the full-year 2017 filings of US-based licensed startup insurers. They also draw on takeaways from the recent past including that startup insurers that have won were active in markets not targeted by incumbents.

Read their post here.

Have a great week,

Matt
@mlcwong

P.S. join us this Thursday, March 22, at 1PM EST for a short briefing on recent P&C insurance tech trends. Sign up here.

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This Week in Insurance Tech 

A curated mix of recent articles on insurance tech financings, exits, hiring, product launches, partnerships, and perspectives.

Deals

Justworks raises $40M. FirstMark Capital led the round to the online benefits, payroll, and HR platform.
TechCrunch

Qualia raises $33M. 5% of the national real estate market is reportedly transacted through home closing workflow software provider Qualia. Menlo Ventures led the round.
Forbes

Aegon invests in Coverfox. Aegon reportedly invested $7.6M in the Indian insurance aggregator.
VC Circle

Unqork raises $5M. The New York-based startup provides a SaaS product for the insurance sales process.
CB Insights

Kelly Klee raises $4.5M. The Aspen-based digital insurance broker for personal insurance from individual investors.
FinSMEs

Figo Pet Insurance raises $4M. The Chicago-based MGA startup offers pet insurance policies underwritten by Markel.
VentureBeat

Hokan raises $560K. The Japan-based startup provides a tool for analyzing insurance policies and offering recommendations. Investors include 500 Startups, BEENEXT, and MID Venture Capital.
TechCrunch

Bertelsmann invests in Mintbao. The China-based startup provides a personalized insurance recommendation platform. 
36kr

By insurers

MassMutual Ventures invests in Solebit. The Tel Aviv-based cybersecurity startup provides an attack prevention system that can be used as a replacement or alternative to traditional endpoint protection systems.
SecurityWeek

M&A

CNP Assurances acquires two insurance startups. The two startups, iSalud n Spain and Azimut in France, are focused on digital marketing and digital distribution of protection and health insurance.
CNP


Company & Insurer News

Chubb partners with Grab. The partnership will provide insurance solutions for Grab's 2.6M drivers and will explore leveraging data technology from Grab's platform to offer personalized insurance solutions for drivers in Southeast Asia.
Insurance Journal

Stanford grads conquer Rio rentals. Quinto Andar is using cheap insurance to undercut real estate brokers in Brazil.
Bloomberg

Immoweb.be partners with Qover. Axel Springer's real estate vertical will partner with Qover to launch an insurance product aimed at landlords to protect against defaulting tenants.
Digimedia

PolicyBazaar parent explores healthcare tech. PolicyBazaar has reportedly reserved $100M for the new venture, called PaisaWiki, to provide online access to medical professionals.
Inc42

State Farm cutting 900 IT positions. Overall, the State Farm IT workforce is being reduced by about 500 positions across the country.
Chicago Tribune

Euler Hermes launches Credable in Sweden. The new invoice insurance brand offers SMEs an on-demand insurance option that can cover a single invoice or buyer. 
GT Review


Articles & Perspectives

Five dispatches from insurtech survival island. Adrian Jones and Matteo Carbone analyze the 2017 filings of startup insurers including Metromile, Root, and Lemonade for lessons learned.
LinkedIn

Cyber attacks: the risks of pricing digital cover. The FT's Oliver Ralph on why cyber cover demand has been met with a mixture of delight and fear in the insurance world.
FT
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