Insurance Nerds’ Post

One insurance gap almost wiped 40% off this insurtech's valuation overnight. Here's how we helped their CFO… The call I got from their CFO was one we get multiple times a year. They now needed deeper expertise. Like many funded startups… They put a basic insurance program in place during their friends & family round. Box ticked. Rolled it through their Series A. Three years later: In the market for a new capital raise. A matured digital I platform serving thousands of customers, and partnerships with several sizeable banks. But their insurance program was still stuck in 2021. Their risk management framework and insurance coverage were speaking different languages. And one insurance savvy investor flagged a gap during due diligence that left a major exposure unchecked. From a 30k view… Here's the insurance framework we helped them design to protect their Series B valuation: 1. Cyber Insurance → ransomware/extortion limits → tech platform interruption calc 2. Technology E&O → software failure coverage → customer data handling errors 3. D&O for Tech Companies → IPO/funding round protection → regulatory tech compliance 4. Coverage Adequacy → tech platform exposure limits → API/integration gap analysis 5. Regulatory Tech Insurance → fintech compliance coverage → digital insurance regs 6. Cost Optimization → insurtech market benchmarking → startup growth scaling costs 7. Data Liability → AI/ML decision coverage → data privacy protection 8. Policy Terms for Tech → API failure exclusions → cloud service interruption 9. Property Insurance → server/hardware protection → remote workforce coverage 10. Risk Management Services → cybersecurity programs → tech incident response 11. Emerging Tech Risks → blockchain exposure → AI liability assessment 12. Coverage Integration → legacy vs digital coverage → partner API protection 13. Claims Process → digital claims handling → real-time reporting systems 14. Policy Documentation → digital certificate system → API-based policy mgmt 15. Market Conditions → insurtech capacity limits → digital insurance trends 16. Regulatory Compliance → fintech licensing reqs → digital compliance reporting 17. Risk Transfer Alternatives → parametric solutions → micro-insurance platforms 18. Coverage Triggers → digital incident definition → automated notice systems 19. Insurance Program Structure → tech platform coverage → startup scaling structure 20. Specialized Tech Needs → open banking exposure → digital payment protection 21-25 Cont in comments… P.S. if you like this post you’ll love our newsletter. Every Friday we flag the top three articles impacting the global insurance markets. It’s for busy executives that want to stay current on the market…

Nationwide just announced a partnership with Trustlayer to offer digital verification of commercial insurance for its policyholders, an innovation that replaces the traditional paper-based system. TrustLayer is a collaborative risk management platform that focuses on the verification of insurance, licenses, and compliance documents within the risk management and insurance sectors. The company provides services related to vendor onboarding, compliance document processing, and risk transfer program enhancement, allowing businesses to manage and verify the compliance of their third-party partners. Back in 2024, we featured Trustlayer in our annual list of the 50 most promising private insurtech companies in the world. The CB Insights research team picked these 50 vendors from a pool of over 2K companies, including applicants and nominees. They were chosen based on CB Insights datasets — including R&D activity, Mosaic scores, business relationships, Yardstiq transcripts, investor profiles, news sentiment analysis, competitive landscape, and team strength — and criteria such as tech novelty and market potential. No one does a better job at answering the build, buy, partner question.

*** Systems Integration and Design Firms*** Keep these things in mind to make informed decisions 1. Technological Advancements and Cybersecurity The rapid pace of technological innovation is transforming the insurance industry. For companies involved in systems integration and design, this means both opportunities and challenges. The integration of artificial intelligence (AI) and machine learning is enhancing risk assessment and claims processing.  However, with increased reliance on technology comes heightened cybersecurity risks. Businesses must ensure they have robust cyber insurance policies to protect against data breaches and cyberattacks, which are becoming more sophisticated and frequent. 2. Rising Premiums and Economic Pressures Economic factors such as inflation and fluctuating interest rates are driving up insurance premiums, particularly in property and casualty (P&C) insurance. For systems integration and design companies, this means higher costs for comprehensive coverage. It is essential to explore strategies to manage these expenses, such as risk mitigation and policy adjustments. Collaborating with an advisor who understands the specific risks of the tech industry can help in finding cost-effective solutions. 3. Customer-Centric Insurance Models Insurers are increasingly adopting customer-centric models, offering personalized services and products tailored to specific client need. For tech companies, this means more customized insurance solutions that align closely with their unique risk profiles. Engaging with insurers who prioritize customer-centricity can result in more relevant and effective coverage, ensuring that all potential risks are adequately addressed. 4. Regulatory Changes and Compliance The regulatory landscape for insurance is constantly evolving. Recent changes in data protection laws and compliance requirements can impact insurance policies and coverage options. It is important for businesses to stay informed about these regulatory developments and work with advisors who can navigate the complexities of compliance. Ensuring that your insurance policies are up-to-date and compliant with current regulations is essential for avoiding potential legal and financial pitfalls. For more detailed insights and tailored advice, feel free to reach out. Staying ahead of the curve will help you make informed decisions and safeguard your business's future.

The insurance and takaful industry is poised for significant evolution in 2025, driven by several trends with the potential for substantial impact. These include technological advancements, shifting customer expectations, and evolving regulatory landscapes. Some pointers below 1. AI and Data Analytics Revolution AI and machine learning will enhance underwriting, claims processing, fraud detection, and personalized offerings. Predictive analytics will enable insurers to identify risks and opportunities with greater precision. AI tools could streamline the operational model, improving transparency and efficiency in risk-sharing. 2. Embedded Insurance Insurance will increasingly be bundled with non-insurance products and services (e.g., travel bookings, electronics purchases). This trend is set to create seamless purchasing experiences and new distribution channels. Embedded takaful products could gain traction, especially in regions with a high demand for Shariah-compliant solutions. 3. Sustainability and ESG Integration Insurers will focus on Environment, Social, and Governance (ESG) factors in product design, underwriting, and investments. Takaful aligns naturally with ESG goals due to its ethical and cooperative principles, giving it an edge in appealing to sustainability-conscious consumers. 4. Digital Transformation and Blockchain Blockchain will enhance transparency and trust, particularly in claims settlement and fraud prevention. Digital platforms and InsurTech solutions will dominate customer engagement and distribution. Smart contracts on blockchain can ensure compliance with Shariah principles and improve trust among participants. 5. Customized and On-Demand Insurance Customers will increasingly demand tailored and usage-based insurance, such as pay-as-you-go or pay-how-you-drive models. On-demand takaful products for short-term coverage can cater to emerging customer needs while maintaining the mutual benefit model. 6. Microinsurance and Financial Inclusion Insurers will innovate products to cater to underserved populations, especially in developing markets. Mobile-based solutions will make coverage affordable and accessible. The takaful model is well-suited for microinsurance, given its focus on community welfare and shared risk. 7. Regulatory Evolution and Shariah Compliance Governments will emphasize consumer protection, data privacy, and technology standards, leading to stricter compliance requirements. The need for Shariah governance frameworks and alignment with global insurance regulations will push takaful operators to enhance operational resilience. 8. Cybersecurity and InsurTech Growth As cyber risks grow, the rise of InsurTech will foster collaboration between traditional players and startups to address emerging challenges. Takaful operators could offer cyber risk solutions tailored to small businesses and ethical enterprises.

AI isn’t just automating the insurance industry—it’s revolutionizing it. The newly released report, “Beyond Automation: AI’s Strategic Role in Insurance,” by ReSource Pro Insights alongside thought leaders Mark Breading , Meredith Barnes-Cook , and Heather Turner, dives deep into how AI is reshaping P&C insurance. At Insiber.com we’re not just spectators; we’re active insurtech participants in this AI-driven transformation, especially in managing cyber risks for SMEs. As avid AI users ourselves, we believe in sharing pivotal insights with our community. Key Takeaways from the Report: 1. AI is Redefining Transformation: From underwriting to claims processing and customer experience, AI is overhauling traditional methods. Generative AI and predictive analytics are leading the charge, driving efficiency and innovation. 2. Human Expertise Remains Crucial: AI isn’t replacing human talent—it’s enhancing it. The synergy between human insight and AI capabilities is unlocking smarter decisions and delivering greater customer value. 3. Emerging Risks and Innovative Coverage: AI-driven solutions are not just mitigating risks but also creating opportunities for new, tailored insurance products that meet evolving customer needs. 4. The Importance of Digital Readiness: Effective AI integration hinges on robust data governance and modern infrastructure. Digital preparedness is the foundation for leveraging AI’s full potential. For those eager to stay ahead in the industry, I highly recommend exploring the report’s sections on retail agencies, MGAs, and carriers. It’s packed with actionable insights on AI integration and future trends. Read the full report here: Beyond Automation: AI’s Strategic Role in Insurance https://lnkd.in/eWWz9Qum

Today’s insurance landscape is more complex and dynamic than ever, shaped by evolving risks, technology advancements, regulatory shifts, and changing consumer expectations. Here’s an overview of key areas to understand: 1. Emerging Risks and Coverage Needs Cybersecurity: Cyber threats are escalating, leading to increased demand for cyber insurance to protect against data breaches and digital liabilities. Climate Change: Natural disasters and climate-related events are more frequent and severe, prompting insurers to rethink coverage strategies and risk assessments. Pandemic-Related Risks: COVID-19 exposed vulnerabilities in health, life, and business interruption insurance, pushing the industry toward pandemic-proof policies. 2. Digital Transformation and InsurTech Data Analytics and AI: Advanced analytics and AI-driven tools are transforming underwriting, risk assessment, and claims processing, offering faster, more accurate insights. Blockchain and Smart Contracts: These technologies streamline transactions, improve transparency, and can reduce fraud by creating immutable records. Customer Experience Innovations: InsurTech startups are driving a digital-first approach, enhancing online policy management, real-time claims support, and customer experience personalization. 3. Shifts in Customer Expectations Demand for Personalization: Modern consumers expect policies tailored to their individual lifestyles, risk profiles, and coverage preferences. Transparency and Education: Customers value clarity on policy details, coverage limits, and claims processes, so insurers must emphasize transparency. Seamless Digital Experiences: With more consumers relying on digital tools, insurance providers need user-friendly platforms for quotes, purchases, and claims. 4. Regulatory and Compliance Challenges Data Privacy Laws: With increased data usage, insurers must comply with strict privacy regulations, such as GDPR and CCPA, to protect consumer information. Global Standardization: As insurance becomes more globalized, aligning with international regulations and standards can be challenging yet crucial. Ethical AI Usage: Regulations around AI are emerging to ensure fairness, especially in underwriting and claims, preventing bias and protecting consumer rights. 5. Focus on ESG (Environmental, Social, and Governance) Sustainable Practices: Investors and consumers increasingly look for insurers who prioritize sustainable investments and environmentally conscious underwriting. Diversity and Inclusion: A focus on inclusive hiring, fair practices, and representation builds trust with both employees and customers. Responsible Investment Strategies: ESG criteria guide many insurers’ investment portfolios, reflecting a commitment to socially responsible business.

AI isn’t just automating the insurance industry—it’s revolutionizing it. The newly released report, “Beyond Automation: AI’s Strategic Role in Insurance,” by ReSource Pro Insights alongside thought leaders Mark Breading , Meredith Barnes-Cook , and Heather Turner, dives deep into how AI is reshaping P&C insurance. At Insiber.com we’re not just spectators; we’re active insurtech participants in this AI-driven transformation, especially in managing cyber risks for SMEs. As avid AI users ourselves, we believe in sharing pivotal insights with our community. Key Takeaways from the Report: 1. AI is Redefining Transformation: From underwriting to claims processing and customer experience, AI is overhauling traditional methods. Generative AI and predictive analytics are leading the charge, driving efficiency and innovation. 2. Human Expertise Remains Crucial: AI isn’t replacing human talent—it’s enhancing it. The synergy between human insight and AI capabilities is unlocking smarter decisions and delivering greater customer value. 3. Emerging Risks and Innovative Coverage: AI-driven solutions are not just mitigating risks but also creating opportunities for new, tailored insurance products that meet evolving customer needs. 4. The Importance of Digital Readiness: Effective AI integration hinges on robust data governance and modern infrastructure. Digital preparedness is the foundation for leveraging AI’s full potential. For those eager to stay ahead in the industry, I highly recommend exploring the report’s sections on retail agencies, MGAs, and carriers. It’s packed with actionable insights on AI integration and future trends. Read the full report here: Beyond Automation: AI’s Strategic Role in Insurance https://lnkd.in/en6fqbxx

The insurance industry is at a pivotal moment. As a product manager driving digital transformation, I’ve seen firsthand how technology reshapes this space—both as an enabler and a disruptor. Personalization: Opportunity vs. Trust Customers today expect tailor-made insurance experiences, and platforms like self-service portals and predictive tools deliver that. At StarHealth, we launched real-time quote engines that not only streamlined the customer journey but also reduced turnaround time from 48 hours to instant. However, this level of personalization raises concerns about data privacy and trust. Balancing innovation with responsibility is key. Digital Transformation: Smooth Roads with Sharp Turns Transitioning from legacy systems to digital platforms is like upgrading from lanterns to electric lights—illuminating yet overwhelming. During my tenure at AIA, Malaysia, managing teams through digital shifts from Waterfall to Agile model highlighted how essential it is to align new technologies with existing workflows. Change management isn’t just about tools; it’s about people. Data and AI: Precision with Pitfalls Data drives everything from risk assessment to fraud detection, but it’s not foolproof. Implementing AI-driven solutions taught me that while automation enhances efficiency, algorithmic biases and data inaccuracies are real risks. Transparency and ethical data use must be at the core of our strategies. The Future We Shape Technologies like Duck Creek and IoT are transforming insurance, offering proactive risk management. But as we adopt these tools, we must ensure that cybersecurity and regulatory compliance evolve in tandem. Ultimately, technology is a tool, not the destination. Our success as product leaders lies in balancing innovation with trust, progress with ethics. I’d love to hear from others: How are you navigating this transformation in your organization?

Transforming Insurance with Technology Insurance today goes beyond policies—it's about partnerships in risk management. At TrustEtics, we see the industry evolving as insurers and policyholders collaborate to build resilient "financial safety nets" for a secure future. This shift is driven by modern insurers who leverage advanced technologies to identify risks across sectors. TrustEtics empowers insurance businesses with cutting-edge tech solutions, driving efficiency and innovation. Becoming a tech-driven insurance leader requires strategic transformation. Partnering with TrustEtics helps you save costs and gain a competitive edge through custom solutions. The Surge in Customer Data The explosion of digital channels is generating massive amounts of customer data, presenting both challenges and opportunities for insurers. Efficient data management is essential, but those who harness advanced analytics can gain a competitive advantage. Insurers are increasingly using data insights to improve customer experience and claims processing. The Growth of Customer Self-Service Customers now expect more self-service options through digital channels like online portals and mobile apps. In response, insurers are investing in tools such as chatbots and online quote generators, allowing customers to handle simple tasks independently. This shift frees up insurers to focus on more complex issues. Conclusion Customers now seek insurers who handle claims quickly and efficiently. Adopting new technologies can reduce churn and enhance profitability.

Daily research from FinTech Global Global InsurTech seed deal activity halves in Q1 2024 YoY In the first quarter of 2024, the global InsurTech sector saw a notable decline in seed deal activity, with only 25 deals recorded, marking a 52% reduction compared to the same period in 2023. Additionally, InsurTech seed companies collectively raised $33.8m during the opening quarter of the year, reflecting a 27% decrease YoY. MIC Global, an embedded micro insurance company, had the largest global InsurTech seed deal in Q1 2024, after raising $6m in their seed round, led by Launchpad Capital. The strategic investment will bolster the company's capacity to drive innovation and extend its technology-driven insurance platform, broadening its reach to diverse audiences across developed and emerging markets. MIC Global specializes in delivering customized microinsurance solutions for underserved individuals and small to medium enterprises. With operations spanning approximately 17 countries, the company's coverage encompasses protection against income loss, everyday risks, and identity theft, catering to the needs of marginalized communities and businesses. Jamie Crystal, co-founder and CEO of MIC Global, said “We are pleased to welcome Launchpad Capital, GreenlightRe, and Ironsides Partners as strategic investors and partners to help fuel MIC Global’s continued growth as the preeminent embedded micro insurance provider. MIC is reimagining how insurance is bought and sold, and the additional capital will support the company’s global growth strategy with a focus on expanding our technology-enabled insurance platform to provide protection to people in both developed and emerging countries through our banking, mobile phone, digital/technology, insurance, and InsurTech partners.” Only eight unique countries recorded seed deals, globally in Q1 2024 and the US led the way with 16 deals, a 56% share of all funding rounds in Q1 2024. Germany was the second most active InsurTech seed country with three transactions, a 12% share of deals. The remaining had one deal each.   MIC Global Sostengo Embea Korr SquareDash BLUECYBER Seguros Cake Insure Lumnion