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Analyzing partnerships data. Gig economy overestimated. This week in insurance tech.
Hi there,

One area we continue to track is the evolution of telematics, or the use of apps and devices to track driver behavior in real time.

In December, Cambridge Mobile Telematics received a whopping $500M investment from SoftBank's Vision Fund.

CMT was launched in 2010 as an outgrowth of MIT’s Computer Science and Artificial Intelligence Lab. Today, the company's DriveWell telematics and behavioral analytics platform is used by over 30 insurers including State Farm and Liberty Mutual in 20 countries.

CMT currently generates revenue in three ways. The primary source is telematics service revenue. The raw sensor data is converted to a paid telematics data feed for insurers, who pay on a per-user per-month basis. Pricing depends on the set of services chosen. The second source is the IoT device, and the third is smaller revenues associated with white labeling and special projects. 

Discovery in South Africa is one user of CMT. According to their 2018 results booklet, Discovery Insure has seen a 7.1% absolute reduction in loss ratio over the past 24 months, and drivers have 60% lower road fatalities than South African drivers.

Discovery hasn't had trouble enticing users to sign up by offering fuel cash back cards. Over the past seven years, the program has provided close to $40M in fuel spend back. While the Discovery Insure mobile app has risen to as high as #18 in the Maps & Navigation section of the Google Play Store in South Africa, it also sports a 2.7-star rating given user complaints of battery drainage and inconsistent scoring.

In an earlier analysis, we looked at insurers that have mentioned telematics on earnings calls and the vendors they were partnering with. CMT came up several times.



Looking ahead, CMT says it's focused on five areas: 1/ expanding its telematics-based policies 2/ using telematics to improve claims processing and accident reconstruction 3/ video analytics 4/ emerging mobility scenarios and 5/ positioning itself in the area of autonomous vehicle testing and scoring.

Gig economy gone wrong

Last week, The Wall Street Journal published a story highlighting how two leading economists recently walked back their conclusions on a landmark 2015 study on the gig economy's ultimate impact on traditional work arrangements. Estimates were overblown because 1/ a lot of gig-economy activity was odd jobs that people took up to make ends meet and 2/ surveys used to measure alternative work arrangements were flawed. Per the WSJ:

We'll be digging more into how the gig economy's size impacts freelancer-focused startups. Recent small acquisitions in the space include The Hartford's acquisition of sharing economy MGU Y-Risk and Kingsbridge Group's acquisition of Dinghy, a seed-funded startup focused on insuring creative freelancers in the UK.



Which (re)insurers are striking strategic partnerships?

We parsed our data collected on strategic partnerships struck by (re)insurers and found that there have been more than 180 partnerships since the start of 2017. See who participated in the most here.



Platform plays in Asia

We've seen more moves in Asia of leading internet platforms setting their sights on insurance distribution. Here they are:
Have a great weekend,

Matt

@mlcwong

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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

Singapore Life raises $33M from Aflac and Aberdeen Standard. Aflac will also enter into a reinsurance agreement on certain products with Singapore Life through its operating subsidiary American Family Life Assurance Company of Columbus.
TechCrunch

Turtlemint raises $25M. The India-based online insurance broker currently has 25,000 point-of-sale agents across 700 cities. Sequoia India led the round.
VC Circle

Bond-Pro raises $10M. The Tampa-based company provides surety and specialty insurance software to agencies and carriers. Volition Capital led the investment.
Benzinga

Yallacompare raises $8M. The Dubai-based financial comparison site for the MENA region raised the funds from investors including Argo Ventures, the investment arm of Argo Group.
Gulf Business

Outline Insurance raises $6M. The San Francisco-based startup provides software solutions to help brokerages and carriers digitally transact E&S risk. Max Levchin's SciFi VC led the round.
CB Insights

By (re)insurers

Limelight Health raises $33.5M. Limelight offers medical and ancillary carriers services such as quoting, rating, proposal generation, renewals, underwriting and enrollment support. Principal Life led the round with a host of strategics.
Vator

White Mountains invests in Noblr. The San Francisco-based car insurance startup utilizing mobile telematics is founded by former Esurance CEO Gary Tolman.
Reinsurance News

Hiscox and MS&AD invest in Akinova. Akinova hopes to provide a digital platform for transfer and trading insurance and reinsurance risks and is looking to launch with an industry-loss warranty (ILW) type of product.
Artemis.bm

M&A

Kingsbridge Contractor Insurance acquires Dinghy. The UK-based startup aimed at freelancers previously raised $1.2M in seed funding from Balderton Capital
Crowdfund Insider

Company & Insurer News

Grab partners with Zhong An. The two will create a digital insurance marketplace offering insurance products in a range of categories with fractionalised premiums to users directly through Grab’s mobile app. 
Singapore Business Review

Travelers to serve as exclusive auto claims manager for Lyft. The new arrangement with Lyft is expect to boost Travelers' fee income and provide it with more ride-hailing driving and loss data.
Reinsurance News

Bytedance's Toutiao removes medical insurance product from app. Toutiao, which acquired a brokerage last year, still offers two other insurance products for covering users' financial assets in their bank accounts and providing medical insurance for individuals. Insurance products are provided by Taikang Online.
TechNode

Porsche partners with Mile Auto. The partnership will see Porsche create a branded version of Mile Auto's mileage-based insurance app.
Digital Insurance

Didi moves into financial services. The Chinese ride-hailing giant added health and car insurance aimed at Didi drivers and gig economy workers.
TechCrunch

AGCS, Praedicat to offer product safety resource to industrial companies. The partnership will provide access to Praedicat's science and regulatory risk analytics product, ChemMeta, to industrial companies.
Insurance Journal
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