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A16Z backs Health IQ. Hartford Steam Boiler partners with At-Bay.
Hi there,

Borders between the worlds of insurance and wealth management are coming down.

According to an FT survey of 1,000 urban Chinese consumers out this week, Yu’E Bao  — the $241B money market fund established by Alibaba — and investment products sold on platforms such as Ping An Insurance-affiliated online financial marketplace Lufax are likely to see the biggest inflows in the coming six months.



Meanwhile, one of the biggest under-the-radar trends in the ETF market is the entrance of major insurers, who have launched six of the largest most popular new ETFs of 2017. Per Bloomberg data, insurers’ home-grown funds now oversee more than $25.3 billion, up from just $1.9 billion five years ago.



Over the last few years, we've also seen insurers make investments or acquisitions in the digital wealth management space.

In 2014, New York Life made its entry into the ETF industry by acquiring FTV Capital-backed ETF issuer IndexIQ, maker of 23 ETFs. More recently, Aviva last month took a majority stake in robo-investment startup Wealthify as “part of its strategy to build customer loyalty."

According to ETF.com, only six insurers, John Hancock, Transamerica, Nationwide, Hartford Funds, Principal, and USAA, had issued their own ETFs, as of October 26. Our own research highlights these insurers have also invested in digital wealth startups including Blooom, NextCapital, Fairr.de, and SigFig. 

Speaking of digital wealth management, we'll be doing a deep dive on four of the more notable players to emerge — Wealthfront, Betterment, Stash, and Acorns — on Monday. Sign up here.



Workers' comp startup raises $11.5M

Earlier this week, our trackers picked up a $11.5M investment to Clara Analytics, a Santa Clara-based startup. Clara provides analytics products aimed at workers' comp claim adjusters including an early warning system for claims managers to prioritize cases. The startup partnered with Aon Benfield in October.

More fundraises

Cyber insurance managing general underwriter At-Bay launched in California with $6M from Lightspeed Venture Partners. The startup is partnered with Hartford Steam Boiler, targeting mid-market companies with "sophisticated risk managers that have a complex IT and assets they are protecting." At-Bay provides up to $10M in single-limit standalone cyber coverage distributed through retail brokers.

Health IQ raised $34.6M led by Andreessen Horowitz. After originally launching as a health quiz, Health IQ uses the quizzes to offer discounted term life insurance from 3 carrier partners (SBLI, Ameritas, and Assurity). Health IQ claims $5.3B in "coverage secured."

Have a great week,

Matt
@mlcwong

P.S. Today marks the second year since we first published this newsletter. Thanks for reading.

Earnings call roundup: Q3'17

Here's what insurance industry CEOs from Aetna, Allstate, AIG and more had to say on Q3'17 earnings calls. Read the roundup.

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Where insurers are investing in digital wealth management

We mapped the digital wealth startups that insurers like Nationwide, USAA, Aviva, and more have invested in or acquired. Read the post.

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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

Health IQ raises $34.6M. The life insurance MGA startup has raised $81.6M in total funding and has helped its customers secure $5.3B in coverage in 22 months.
CNBC

Goji raises $15M. Hudson Structured Capital Management led the round to the auto insurance comparison company.
Goji

At-Bay raises $6M. The cyber insurance managing general underwriter is partnered with Hartford Steam Boiler.
Insurance Journal

Clara Analytics raises $11.5M. The Santa Clara-based startup provides analytics products for workers' comp claims adjusters.
CB Insights

Canopy raises new funds. The London-based startup, which provides a rental security deposit replacement, raised an undisclosed round from Round Hill Capital after raising $2.1M from investors including Direct Line.
FinSMEs

By (re)insurers

USAA invests in Enveil. The Maryland-based company provides data encryption security protecting data in use. 
Technical.ly

RGAx invests in Bitspark. The Hong Kong-based startup provides cryptocurrency brokerage services to Money Transfer Operators (MTOs). 
Reinsurance News

Ping An invests in MitrAssist. The Israel-based biotech firm developed a heart valve implant that can be installed without invasive heart surgery.
NoCamels


Company & Insurer News

Should individuals buy insurance against cyber attacks? The FT's Oliver Ralph covers the outlook for the personal cyber insurance market.
FT

China's Ping An draws up a $1B shopping list. The financial conglomerate's Voyager Fund said it would invest $10M-$30M in first-stage companies with a valuation of $100M-$600M.
Nikkei Asian Review

Amazon seeks staff in Europe insurance push. Reuters picks up our recent research on Amazon's product insurance job postings.
Reuters; CB Insights

AXA chief executive launches big shake-up to simplify company. Thomas Buberl said the company is setting up for a "new golden age for insurance" in which cyber crime, catastrophes, and new ways of work will drive demand for cover.
FT

Insurers now have their own ETFs to sell you. Asset management has become an essential diversifier for insurance companies whose home-grown funds now oversee more than $25.3B vs. $1.9B five years ago.
Bloomberg

Decisely acquires IBX Outsourcing. Through the acquisition, Decisely will add offices in three states and over 400 small business customers across the country. 
Employee Benefit Adviser

Betterview releases commercial drone package for property inspections. The package for insurers includes a DJI drone, software, and training.
Canadian Underwriter

Uber, tech firms helping their contract workers sign onto Obamacare. Uber will hold events for drivers in 28 US cities to offer in-person assistance in signing up for insurance plans offered through the Affordable Care Act.
Fortune
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