A fintech focus on the Disruption50 Index, with nine innovative insurtech applicants
As part of our search for the UK’s most innovative organisations, D/SRUPTION joined an expert judging panel to evaluate entries for the Disruption50 Index. Hundreds of companies applied in fields ranging from AI, blockchain, and IoT to the legal, retail, and pharmaceutical industries. With the three stage judging process now complete, it’s the perfect time to profile the work of some of our impressive applicants.
This week we take a look at a selection of insurtech applicants to the Disruption50 Index, who are disrupting the insurance industry with innovative new business models and technology strategies.
Anorak was founded to give everyone easy access to life insurance. In the UK, nine million families are at risk if the breadwinner dies – a trend that is also replicated in many other countries worldwide. However, life insurance is generally only bought by wealthy individuals, leaving a large section of the market untapped and at risk. With its fully automated and regulated life insurance advice platform, Anorak aims to widen existing distribution channels to life insurance products and increase financial inclusion in the UK.
2) Bought By Many
Bought By Many analyses anonymised search data to identify problems with existing insurance, in order to work out how they can make it better. This includes developing new products that fulfil unmet consumer demand as well as improving the customer experience. A particular success for the company has been its pet insurance product, which was designed in response to feedback from over 40,000 pet owners. Friction points addressed by Bought By Many in this space include premiums rising beyond what people can afford, consumers believing insurance can be a waste of money if they don’t need to claim, a lack of cover for pre-existing medical conditions, and complicated legal jargon.
Insurance risk is traditionally measured and priced based on limited rating factors such as demographic data. However, this data inadequately reflects the underlying risk involved in an insurance product, leading to inappropriate pricing and even financial losses for many insurers. Concirrus recognises that behavioural and environmental data is a more accurate indicator of the true level of risk. Its digital platform, Quest, uses AI and machine learning to analyse huge volumes of such data and turn it into actionable insights. Concirrus has also created a new ecosystem in the insurance market by bringing together key players across the insurance value chain.
Dinghy aims to disrupt the freelancer insurance market. When the company was launched, the majority of insurance products offered to the self employed were only available on an annual, fixed term basis. With its mobile platform and digital approach, Dinghy offers greater flexibility and accessibility to freelancer insurance products. The company provides real time proof of policies, quotes in just 45 seconds, and policies in as little as three minutes. Importantly for a freelance insurer, they also charge for insurance by the second, take payments in arrears with no fees for transactions, and don’t force consumers to set their policy period up front.
As their name suggests, Floodflash specialises in parametric – or event based – insurance in floods. In the past, this kind of insurance was only available to large companies who could afford to pay for risk modelling and measurement technologies. Through its IoT sensors, however, Floodflash is able to measure water levels at its clients’ premises. It then assesses this together with flood monitoring data to analyse flood levels in a way that is accessible to SMEs.
6) Honcho Markets
Honcho is the UK’s first reverse auction marketplace for financial services, with an initial focus on the B2C insurance market. This product aims to disrupt traditional price comparison websites, which pass quotes on from insurers to consumers without really considering whether the product fits their requirements. The honcho platform instead sees insurance providers bidding against each other in real time to win a customer’s business. Honcho first launched in the car insurance sector, where consumers simply submit their insurance requirements. This information is then broadcast to members of the honcho ecosystem who bid for their business in a matter of seconds.
Laka seeks to rebuild consumer trust in the insurance industry, and create a model where the interests of consumers and insurers are aligned. Their crowd insurance business model turns the traditional concept of insurance on its head. In a move away from the norm, the company pays out claims first, and then asks customers to reimburse them for the claims expenses that the risk pool has incurred during a certain period of time. Laka also makes the claims process itself much simpler for consumers, with only a video statement and answers to three questions required to make a claim.
8) Urban Jungle
Urban Jungle is a home insurance provider that extends cover to properties and living situations that people may otherwise struggle to insure. Their target market is mostly made up of renters, who require such products as tenants liability insurance, shared home contents insurance and gadget protection. The company makes insurance processes simple, transparent, and – perhaps most importantly – fast, with cover available in as little as five minutes. Tech is used to cut the cost of operations, with these savings passed on to the consumer. Urban Jungle highly prioritises the reputation of its brand and consumer satisfaction, and the business is currently rated the top home insurance provider in the UK on Trustpilot.
Worry+Peace state that since no one likes buying insurance, they decided not to sell it… Instead, the business connects insurance providers with those who need it. Their platform serves as a networked directory of business and personal insurance products for a range of different purposes. Crucially, unlike traditional price comparison sites, Worry+Peace do not take a cut of interactions between buyers and sellers. This helps to keep premiums low. The platform also delivers fairer search results of available insurance providers, giving customers a more balanced view of results and insurers a more level playing field.
Who made the cut?
These innovative insurtech businesses demonstrate the diversity of applicants to the Disruption50 Index this year. But will they feature in the top 50? Find out next week – when we release the final list of indexed companies.
You’ll have to wait until September to find out their rankings within the Index though, as all will be revealed in a special event at Disruption Summit Europe… Buy your ticket to Europe’s foremost disruption and innovation conference here.
To stay up to date with the latest developments in the Disruption50 Index, including access to the upcoming report, sign up to our weekly newsletter.