Investing in insurtech It’s an exciting time for insurance innovation, but challenges remain By John Deex
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he COVID pandemic has pressed the fast-forward button on digital transformation, but it can still be difficult for insurtechs to get off the ground in an insurance market that’s dominated by a few major players. Trying to counter this are organisations whose prime focus is helping insurtechs succeed. Insurtech Gateway Australia, an insurtech incubator launched in 2019, is currently working with three companies, and Chief Executive Simon O’Dell says a fourth will soon be added. Mr O’Dell says there’s huge opportunity for insurtechs right now, but limited access to risk capital can still hold the sector back. The three companies already announced as Gateway partners are: • Koba, which uses a UK technology platform to create flexible, pay-per-kilometre car insurance; • AuditCover, which offers a fully digital insurance solution, underwritten by Lloyd’s, to enable accountants to quickly and easily manage tax audit insurance for clients; and • Geolocarta, which has created a marketplace connecting an Australia-wide network of geospatial data professionals to corporate consumers. Mr O’Dell says Geolocarta is a good example of how Insurtech Gateway Australia can help new entrants. The property characteristic data offered through the Geolocarta platform is produced by qualified geospatial measurement and analysis professionals. It can plug directly into insurers’ existing workflows. “For the user experience, there is no longer a need
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for the consumer to provide, check or even see the data that informs their quote,” he tells Insurance News. “Rather, after entering their address, the consumer only needs to see the coverage offered and the premium. “This technology breakthrough will be particularly valuable to meet the changing duty of disclosure laws.” Mr O’Dell says Geolocarta will also give insurers the ability to discover new predictive data, and new relationships between attributes and risk. “With constant pressure on the commoditisation of insurance products, this breakthrough should offer some relief to insurers seeking to differentiate through proprietary underwriting and pricing.” Mr O’Dell says the business already had a dedicated user base and well thought-out technical framework, but much was unknown. “We have helped Geolocarta develop a venture building framework, a route to market, a co-design partnership with Swiss Re, and an engaged sales funnel,” Mr O’Dell says. “For other portfolio companies operating as a regulated entity, we offer regulatory permissions and a comprehensive compliance program that aligns with regulatory reform.” Mr O’Dell says that the development of data means that it’s a “super exciting time” for insurance and technology specialists. “Indicators suggest that we’re in the midst of an era that is seeing a rapid closing of the gap between reality and the reality reference layer. “This is not just being realised in property characteristics for property insurance. New proprietary data
