Copy
69-page report on state of drones. This week in insurance tech.
Hi there,

Earlier this week, online small business lender Kabbage raised $250M led by SoftBank Group. As part of the announcement, Kabbage announced that it would look to potentially offer new products like insurance and payroll services.

What might this look like from the vantage point of Kabbage's potential insurance partner? In November 2016, when SoFi announced it would partner with Protective Life to launch a term life insurance offering, the news was almost entirely covered from the angle of "SoFi is entering the insurance space."

But it's interesting to see how Protective rationalized the partnership. Here's what Protective management said on a March 2017 company update (slide from the presentation below):

"What we're trying to take advantage of is brand with customers, like with Costco. If you're a Costco member, you have a lot of confidence in Costco so if they affirm that you're their exclusive provider it really helps lets you use their brand to affirm your offering."



Perhaps more relevant is that Protective might not have been able to fulfill the partnership had it not adopted certain new technologies and approaches to product design. As they explained:

"I don't believe we could have gotten up and running (with SoFi) in the time we did had we not adopted a more agile approach in terms of what we did." 

Tencent deepens focus on insurance 

Earlier this summer, we unpacked Zhong An Insurance's IPO prospectus to take a deeper look into its products, partnerships, and regulatory landscape.

This week, one of its founding partners, Tencent, announced it would be moving forward with a new online P&C insurer called WeSure Internet Insurance with a $55.5M investment from Taiwan's Fubon Financial. 

The announcement noted that WeSure has not received an insurance license yet. Recall that earlier joint ventures such as Baidu teaming up with Allianz and Tencent with Aviva in Hong Kong have also faced license issues. Compounding those issues is that China is currently looking to appoint a new insurance regulator.

Look to the sky

Farmers this week announced it would launch a new drone program with Kespry to assess residential property damage (drones in insurance was also the topic of a WSJ piece this week below). My colleague Nick Pappageorge recently put together a comprehensive primer on the state of drones. You can get the full 69-slide deck here.



Have a great weekend,

Matt
@mlcwong

Insurance CEOs say change is coming

Here's what insurance industry CEOs from The Hartford, Travelers, Chubb, and Markel had to say on insurance tech in recent earnings calls. See the commentary.

Tweet this


The most active smart home investors

Active investors in the smart home space include Amazon Alexa Fund, First Round Capital, and Cherubic Ventures. See the graphic.

Tweet this

This Week in Insurance Tech 

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

Deals

Kin Insurance announces $4M seed. The Chicago-based home insurance startup plans to launch in Florida and is backed by investors including Commerce Ventures and Omidyar Network.
TechCrunch

D.lemon raises $980K. The South Korea-based startup is the developer of LEMON Clip, a mobile insurance management app. Investors include KB Investment and Songhyun Investment

Platum.kr

Sensor Networks raises funding. The South Africa-based startup offers a sensor smart tracker aimed to help insurance clients reduce premiums.
TechMoran

M&A

Genpact acquires OnSource. OnSource provides a inspection-as-a-service product for P&C carriers and their customers. OnSource raised $2.25M from Greybull Stewardship in 2015. OnSource is Genpact's fifth acquisition of 2017 YTD.
Genpact


Company & Insurer News

Tencent to establish online insurance joint venture with Taiwan's Fubon. The two plan to launch an online P&C insurer called WeSure Internet Insurance with registered capital of 1.5 billion yuan.
Apple Daily

Farmers to integrate drone tech from Kespry. Farmers has started deploying Kespry drone technology to assess residential property damage.

DroneLife

Lemonade launches in New Jersey. The online homeowners and renters insurer has received 13 state licenses and has launched in four states.
Insurance Journal

PolicyGenius adds renters insurance. The online life insurance broker added renters insurance from Stillwater to its offering.

Kabbage considering offering insurance products. The online small business lender raised $250M from SoftBank Group is considering expanding into small business insurance and payroll services.
Insurance Journal


Articles & Blog Posts

That drone hovering over your home? It's the insurance inspection. The Wall Street Journal covers developments in claims technology in the P&C industry.
WSJ

Smart helmets that protect your wallet. Forbes profiles Jarvish, a company that installs sensors inside motorcycle helmets to measure behavior.
Forbes
If you loved this newsletter, send it to a friend.
If you hated it, send it to an enemy.
All the data in this newsletter comes from CB Insights. Join NEA, Cisco & hundreds of other clients and get access to the industry's best private company data.

Sign up for access.
Copyright © 2017 CB Insights, All rights reserved.