On-demand commercial insurance. This week in insurance tech.
Hi there,

Last week, Amazon confirmed its rumored investment in Indian online general insurance provider Acko.

Acko currently offers traditional car and bike insurance policies, but is increasingly focused on 'internet economy' deals --- e-commerce, travel, and ride hailing-focused products --- such as an April in-trip insurance program with Ola. CEO Varun Dua, on the company's new investor:

"The idea is to find some way to collaborate in the future. We’re a new age insurance company and [Amazon] believes it can create value."

The investment has drawn headlines such as "Amazon coming to insurance?" and "Amazon's next big insurance move". Lets look at what's really happening.

In its entire history, Amazon has made just seven fintech-related investments or acquisitions (out of more than 140 not including those made by the Amazon Alexa Fund). Six of these are in India, including recently mobile payments technology startup ToneTag and small business lending startup Capital Float

One reason for the concentration in investment is competition from the likes of Alibaba-backed Paytm, but another is that, unlike other markets, India is still in the earliest innings of digital finance and digital commerce, more generally. Per Alibaba's EVP Joe Tsai at last week's Code Conference:

"If you look at India, we're in the first inning. Total industry GMV for e-commerce (in India) this year is going to be less than $20B. China is close to $1T today. So very, very early days."

Meanwhile, Amazon's job listings in the US instead continue to highlight its increasing focus on driving AWS adoption in insurance as more insurers transition to the cloud. Based on our new market sizings tool, the cloud computing market will soon grow past $100B, where Amazon's market-leading platform benefits from massive barriers to entry.

Small commercial update

Today, no insurer has 10%+ share in the US small commercial insurance market. This is in spite of continued projections of eventual long-term digital growth. As such, we continue to closely track activity in the space. Here is an update on recent moves in the last few months:

Carriers look to improve (or obtain) agent technology:
  • Chubb launched a new digital platform to allow independent agents to quote, issue, and service small business accounts
  • Hanover announced a partnership with CoverWallet to allow independent agents to use the startup's technology for the micro segment of its small commercial businesses
Startups look to gig economy:
  • Verifly launched on-demand liability insurance underwritten by Markel across five categories including professional services, construction, home & garden, events, and pets. Per founder Jay Bregman, "What we noticed was that the people who were drone pilots were also photographers, IT consultants, surveyors, roof inspectors. We got over 150 separate requests for this general liability product."
  • Bunker partnered with Chubb to develop new insurance products focused on freelance workers
  • Jones raised $2.8M this week to launch a pay-as-you-go liability insurance solution
Direct writers are still very small or getting off the ground:
  • Berkshire Hathaway's BiBerk wrote $6.4M in premiums in 2017, with the large majority coming from workers' comp
  • Small business insurance MGA startup Next Insurance obtained its first carrier license Delaware with plans to obtain licenses in all 50 states
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Have a great week,


Quarterly insurance tech briefing: Q1 2018

This report takes a data-driven look at global insurance tech trends, with a focus on capital providers including traditional VCs and incumbent funds. Get a copy.
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Europe insurance tech market map

We mapped Europe-based insurance startups across auto, home, health, life, and more. See the map (CB Insights platform subscribers only).

This Week in Insurance Tech 

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


Coya raises $30M. The Berlin-based startup insurer which plans to operate in the home insurance space has yet to launch.

Acko raises $12M. The investment is Amazon's first in India's insurance sector.


Flock raises $3M. Anthemis led the investment to the London-based pas-as-you-fly drone insurance startup. The company says 1,000 commercial drone pilots use Flock Cover.

Jones raises $2.8M. Jones plans to launch a pay-as-you-go liability insurance solution. Hetz Ventures led the round.
CB Insights

Luko raises $2.3M. The Paris-based home insurance startup paired with a connected device to monitor electrical appliances. Coverage is underwritten by La Parisienne Assurances.
LA Tribune

Toffee Insurance raises $1.5M. The India-based startup provides customized health, lifestyle, and personal accident policies underwritten by Apollo Munich and Ergo. investors include Kalaari Capital and Omidyar Network.

11bee raises Series A. The Beijing-based digital insurance brokerage startup was established by Ctrip and Qunar in 2016. Sequoia Capital China led the investment.

By (re)insurers

Allianz X invests in MoneyFarm. The London-based digital wealth manager has 46,000 active investors and £400m under management.
City AM

IAG invests in Airtasker. The investment into the Australian task-based online and mobile marketplace includes a data-sharing agreement.
Australian Financial Review

Company & Insurer News

The first quarter in insurtech startup financials. Adrian Jones and Matteo Carbone analyze publicly-available financial results of US startups including Lemonade, Root, and Metromile (good discussion in comments).

AXA partners with BlaBlaCar on new product. Called BlaBlaSure, the new offering is available in three tiers from third-party liability protection to comprehensive insurance for risks including collision damage. The underwriting process is conducted online, with members getting quotes straight from the BlaBlaCar platform.

Insurance Business

Allstate partners with Life360. The partnership will allow users of Life360's driving safety service to have access to personalized insurance offers based on their driving habits. Allstate will invest in Life360 as part of the partnership.
Insurance Business

Swiss Re, SoftBank end investment talks. The reinsurer said it will "further explore business ideas between Swiss Re's operative entities and the portfolio companies of SoftBank."


EverQuote files for $75M IPO. The Cambridge-based insurance lead gen company reports a $1M net loss on $40M in revenue for Q1'18. The company booked $135M in sales for the 12 months ending March 31, 2018.

Comcast, Hippo partner on pilot. The pilot ties together Hippo's home insurance offering with Xfinity Home services and devices for interested residential customers in the greater Houston area. 

Multichannel News

Chubb partners with CyberCube. Chubb signed an agreement with CyberCube to use the cyber risk analytics company’s analytics to supplement its ability to better quantify and understand systemic risks across its cyber portfolio.
Reinsurance News
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