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April 15, 2021

Industry Challenge

Over $1 Billion invested in the insurtech sector in Q1

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What they’re saying: Insurance isn’t known as a fast-moving industry. But in recent years, this most traditional of industries has been an ultra-hot sector for VCs and startup founders. High profile exits are now giving way to new VC investment in the industry. 

Opportunity: There’s a massive need to upgrade the industry and the insurtechs that get it right are going to win big. We expect continued venture capital funding to continue flowing until the problem is solved. 

Read: As Insurtech Exits Spike, More VC Money Piles Into The Space
P/C InsurTech Venture Capital Surpasses $1B in Q1; Several Startups Raise Large Rounds

Product Innovation

New flexible coverage for delivery fleets takes personal lines innovation to commercial insurance.

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What they’re saying: The first new product, tailored towards both electric and traditional moped fleets, is usage-based, meaning businesses only pay for insurance when they actually need it.

Niche growth: Insurance companies are growing increasingly specialized, Zego is an example of this niche focus. For insurers with the capability to dominate niches this is an incredible way to drive growth and it is a trend we expect to continue. 

Read: UK Insurtech Zego Launches Flexible Cover for Food, Grocery Delivery Businesses

Cool stuff

Sensory Augmentation

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What is it: a device consisting of 32 vibrating motors that users wear around their torso, just like a sartorial vest. The VEST can take in diverse types of real-time data—from sound waves to help the deaf to a flight status, even stock market trends—and translates this data into dynamic patterns of vibration in the motors. With just a few weeks of training, Eagleman says users can learn to associate the patterns with specific inputs—the sound of a letter, or even the news of a particular stock appreciating.

What it could mean for insurance: We’re already using tech to track workers movements, so wearables for loss prevention aren’t a new thing. This tech is definitely in its infancy, but loss prevention and sophisticated alerting seem like the first use cases; quickly escalate to full interactive learning environments.

Read: Could This Futuristic Vest Give Us a Sixth Sense?
View full image: Embracing Digital Transformation

Industry Watch

Federal flood insurance isn’t keeping up with losses, but that’s about to change.

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What they’re saying: New premiums will be based on a property’s value, risk of flooding and other factors, rather than simply on a property’s elevation in a flood zone. More than 4 million people will face premium increases on Oct 1st due to a new Federal Flood Insurance rating plan.

Read: New Federal Flood Insurance Rating Plan to Start Oct. 1

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