Max Zhang’s Post

I disagree with the premise of this article, which at its core is that it is a better business model to sell SaaS to insurance companies vs. use tech to underwrite risk itself. Let's look at some of the arguments: - Insurtech funding fell in 2023 and VCs are cooling on the segment: Okay, I believe this to be true, but if you look at the data the entire VC market was down 40% and the slowest year since 2018. - Insurtech MGAs attract the riskiest clients: I don't know what data supports this, especially in the context of their news on Koffie, which specifically targeted profitable underwriting standards. - Carriers can partner with tech startups: Also true, but that doesn't mean SaaS is a fundamentally better business model for VC. - The rest of it just seems to call companies that they don't like words like "buzzy" and "appealing to cool customers" which don't even make sense to me - except to note that all customers of KWH are indeed 'cool'. If you have a unique data set and can better understand a risk than the competition, becoming a risk-bearing entity usually leads to outsized profit. Building a distribution channel and a unique underwriting model is at its core attractive to carriers and reinsurers if you can make them money. Yes, building an MGA is hard. You have to compete against well funded incumbents. You often are paying the broker a hefty fee. Your profit commission doesn't show up for years, and managing cash flow is of utmost important. If you are doing your job right, you are making money for your carrier partners, and there is value leakage. But you are also building a base of highly profitable customers that (re)insurers highly value. The biggest challenge in my mind is that a lot of insurance investors seem to value nothing-but-EBITDA, while it can take a while to get there as an MGA, and barriers to entry to start a new MGA are high. But let's be honest, every company in tech recalibrated over the past 18 months, and lots of companies both within and outside of insurtech are facing similar challenges: too high valuations during ZIRP, cutting costs, managing existing investors, and balancing growth with profit. Yes, even the SaaS insurtech companies face these challenges. Selling tech to insurance companies can be a good model, but it isn't a panacea. https://lnkd.in/gCdxcJbM

🚨 Invitation: Join Us at the Next Plenary Meeting of the Open & Embedded Insurance Observatory 🚨 After overwhelming demand, we are doubling down on our London plenaries this year! 🌍 The upcoming session promises to be packed with insightful discussions on the latest trends and opportunities in embedded and open insurance. For details see below ⬇️ 📢 Seats are limited — Apply now to reserve your spot and be part of this exclusive event. Looking forward to seeing many of you there! #EmbeddedInsurance #OpenInsurance #InsuranceInnovation

🚀 Exciting Times Ahead for Insurtech in Poland! 🚀 🚀 Movens Capital new investment!🚀 🚀Avant-garde of dynamic pricing....🚀 As we navigate through the evolving landscape of the insurance industry, it's thrilling to witness innovative companies like Trasti redefine what it means to be a modern insurance firm in Poland. With a blend of experienced professionals from insurance, banking, IT, and payments, Trasti is setting a new standard for how insurance can be both profitable and customer-centric, without necessarily being the cheapest option on the market. Those guys are at the forefront of dynamic pricing.... In just three years, Trasti has grown to nearly 300,000 customers, with ambitions to add a million more and reach 1 billion PLN in insurance premiums over the next three years. Their journey from concept to reality, starting in 2018, showcases the power of a clear vision, strong partnerships, and the relentless pursuit of innovation. What sets Trasti apart is not just their impressive growth or their approach to selling insurance policies online. It's their commitment to being like their British idol, the Admiral Group Plc Group, focusing on profitability, customer satisfaction, and international expansion. Their approach of operating as an insurtech with an external MGA license, offering a blend of required and optional insurance policies in easy installments, is a clear testament to their innovative style. The journey of Trasti is such an amazing story of innovation, resilience, and strategic growth. It's a great reminder that in the insurance world, it's not just about what you offer but how you offer it. As Trasti gears up for its next phase of growth, it's so exciting to think about the impact they'll keep making on the insurance industry in Poland and around the world! Lukasz Pawlowski is the mastermind behind the investment process! Immense applause for his exceptional skills! For those interested in the intersection of technology and insurance, Trasti's story is a must-read. Check out the full article in the comments below 👇

Join 150+ embedded and affinity insurance experts (carriers, brokers, distributors, insurtechs, and VCs) at our in-person Plenary Meeting in London, UK | 11th November 2024 1:00-7:00 PM. Register here: https://lnkd.in/d-tpv3Pc Here is the speaker lineup and agenda for 6 hours of insightful sessions: 𝟭. 𝗣𝗿𝗲𝘀𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻 – 𝗧𝗵𝗲 𝘀𝘁𝗮𝘁𝗲 𝗼𝗳 𝗲𝗺𝗯𝗲𝗱𝗱𝗲𝗱 𝗶𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗮𝗻𝗱 𝘁𝗵𝗲 𝗲𝘃𝗼𝗹𝘃𝗶𝗻𝗴 𝗿𝗼𝗹𝗲 𝗼𝗳 𝘁𝗲𝗰𝗵 𝗲𝗻𝗮𝗯𝗹𝗲𝗺𝗲𝗻𝘁: - Yuri Poletto, Founder and Director of the Open & Embedded Insurance Observatory - Giulia Romanzin, Head of Financial Services GTM Europe South, Head of Insurance GTM UK at Amazon Web Services (AWS). 𝟮. 𝗣𝗮𝗻𝗲𝗹 – 𝗨𝗻𝗹𝗼𝗰𝗸𝗶𝗻𝗴 𝘁𝗵𝗲 𝗣𝗼𝘁𝗲𝗻𝘁𝗶𝗮𝗹 𝗼𝗳 𝗢𝗽𝗲𝗻 𝗜𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲: 𝗖𝗼𝗹𝗹𝗮𝗯𝗼𝗿𝗮𝘁𝗶𝗼𝗻, 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻, 𝗮𝗻𝗱 𝗗𝗮𝘁𝗮 𝗦𝗵𝗮𝗿𝗶𝗻𝗴: - Mark McDonald, General Insurance Practice Director at Altus Consulting - Lorenzo Fattibene, Global Strategy Execution Leader at EY - Robert Trueman, CTO of CDL Software and Insurely. 𝟯. 𝗥𝗲𝗽𝗼𝗿𝘁 𝗽𝗿𝗲𝘀𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻 – 𝗘𝗺𝗯𝗲𝗱𝗱𝗶𝗻𝗴 𝗶𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗶𝗻 𝗱𝗶𝗴𝗶𝘁𝗮𝗹 𝗣𝗹𝗮𝘁𝗳𝗼𝗿𝗺𝘀 𝗮𝗻𝗱 𝗠𝗮𝗿𝗸𝗲𝘁𝗽𝗹𝗮𝗰𝗲𝘀: 𝘁𝗵𝗲 𝘃𝗶𝘁𝗮𝗹 𝗿𝗼𝗹𝗲 𝗼𝗳 𝗶𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗶𝗻 𝗮𝗰𝗰𝗲𝗹𝗲𝗿𝗮𝘁𝗶𝗻𝗴 𝘁𝗵𝗲 𝗽𝗹𝗮𝘁𝗳𝗼𝗿𝗺 𝗮𝗻𝗱 𝗺𝗮𝗿𝗸𝗲𝘁𝗽𝗹𝗮𝗰𝗲 𝗲𝗰𝗼𝗻𝗼𝗺𝘆:  - Phil Hobson, Head of International Affinity at Marsh - Leonardo Cardone, Head of Strategic Partnerships at Sure 𝟰. 𝗞𝗲𝘆𝗻𝗼𝘁𝗲 – 𝗥𝗲𝘁𝗲𝗻𝘁𝗶𝗼𝗻 𝗼𝗿 𝗡𝗲𝘄 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗔𝗰𝗾𝘂𝗶𝘀𝗶𝘁𝗶𝗼𝗻: 𝗪𝗵𝗶𝗰𝗵 𝗣𝗮𝘁𝗵 𝗳𝗼𝗿 𝗜𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗚𝗿𝗼𝘄𝘁𝗵? 𝟱. 𝗕𝗿𝗲𝗮𝗸𝗼𝘂𝘁 𝘀𝗲𝘀𝘀𝗶𝗼𝗻𝘀: - 𝗘𝗺𝗯𝗲𝗱𝗱𝗲𝗱 𝗜𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗶𝗻 𝗥𝗲𝘁𝗮𝗶𝗹, led by Robert McCarthy, Non-Executive Chair at Embri and John Miller, Strategic Account Director at Quotall - 𝗘𝗺𝗯𝗲𝗱𝗱𝗲𝗱 𝗶𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀 𝘄𝗶𝘁𝗵 𝗧𝗲𝗹𝗰𝗼𝘀, led by Daisy Qi Dong, Group Head of Product, Proposition and Head of Product and Pricing Europe at bolttech - 𝗘𝗺𝗯𝗲𝗱𝗱𝗲𝗱 𝗶𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀 𝘄𝗶𝘁𝗵 𝗟𝗲𝗴𝗮𝗹𝗧𝗲𝗰𝗵 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀, led by Grahame Cohen, Founder and CEO of Epoq Legal UK - 𝗘𝗺𝗯𝗲𝗱𝗱𝗲𝗱 𝗶𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗳𝗼𝗿 𝗠𝗶𝗰𝗿𝗼 𝗘𝗻𝘁𝗲𝗿𝗽𝗿𝗶𝘀𝗲𝘀 𝗮𝗻𝗱 𝗦𝗠𝗘𝘀, led by Christian Gengler, Head of Partnerships at Hiscox 𝟲. 𝗣𝗮𝗻𝗲𝗹 – 𝗦𝗲𝗮𝗺𝗹𝗲𝘀𝘀 𝗣𝗿𝗼𝘁𝗲𝗰𝘁𝗶𝗼𝗻: 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻𝘀 𝗶𝗻 𝗘𝗺𝗯𝗲𝗱𝗱𝗲𝗱 𝗜𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗳𝗼𝗿 𝗔𝘂𝘁𝗼 𝗮𝗻𝗱 𝗠𝗼𝗯𝗶𝗹𝗶𝘁𝘆: - Pierre Stalla-Bourdillon, Head of Group Business Development & Partnerships – Motor at Generali - Nick McCowan, Head of Programmes and Operations for GB Affinity at WTW - Russell Fisher, COO Admiral Pioneer at Admiral Group Plc - Niall Barton, Executive Chairman at Wrisk And, of course, networking with light bites and refreshments to wrap up the event. #OpenInsurance #EmbeddedInsurance #Insurtech #Insurance #Technology

German based insurtech ELEMENT Insurance AG secures €50M in funding #ELEMENT, the German innovator in insurance technology, has successfully closed a €50 million funding round, marking a pivotal moment in its journey. This investment, contributed by distinguished entities like Versorgungswerk der Zahnärztekammer Berlin K.d.ö.R. and Alma Mundi, underscores the confidence and excitement surrounding ELEMENT's revolutionary approach to insurance. The backing from Versorgungswerk der Zahnärztekammer Berlin K.d.ö.R. and Alma Mundi provides the financial fuel for ELEMENT's continued growth but also validates the company's business model and market potential. This support is instrumental in propelling ELEMENT toward its goal of redefining insurance through digital solutions. ELEMENT's unique position at the intersection of technology and insurance has enabled it to deliver white-label products that meet the evolving needs of businesses and consumers alike. With a full license to operate across all EU countries, ELEMENT's cloud-based platform offers unparalleled speed, flexibility, and reliability in insurance solutions, covering the comprehensive B2B2X value chain. By leveraging its digital infrastructure, ELEMENT distinguishes itself with an efficient, entirely digital approach to insurance, merging deep industry expertise with cutting-edge technology. This fusion empowers ELEMENT to lead the digital transformation of the insurance sector, offering innovative solutions that challenge traditional models. Despite initially aiming for a €100 million fundraising goal, the successful acquisition of €50 million is a testament to ELEMENT's potential and the growing investor interest in digital insurance platforms. This funding round equips ELEMENT with the resources to expand its offerings and market reach but also signals a broader industry shift towards tech-driven insurance services. The article on FinTech Global in the first comment. Want to stay up to date with the market? Here my newsletter: - Linkedin: https://t.ly/s541W   - Substack: https://lnkd.in/dzfGJzmW

Authentic Insurance, a company provides the infrastructure for franchisors, software companies or associations to roll out their own “captive” insurance offering, has raised an $11M Series A round led by FirstMark Capital with participation from Slow Ventures, Altai Ventures, MGV, Upper90, and Commerce Ventures. Providing the infrastructure for franchisors, software companies or associations to roll out their own insurance offering to their existing customers, Authentic describes the way it operates as being like a “co-op” or “collective” model, enabling member-owned programs allow for hyper-customised coverage and potential dividends when there are fewer claims, which can lead to cost savings as well. “The way commercial insurance is bought and sold has largely remained unchanged since it first came into existence over 50 years ago,” comments Adam Nelson, Partner, FirstMark Capital. “Authentic is the first company to virtually eliminate the need for traditional carriers. With a platform approach that enables partners to roll out their own new insurance offerings, it’s been incredible to watch as millions of businesses instantly gain access to a better insurance model on day one.” https://lnkd.in/eu5KUtbb #embeddedinsurance #openinsurance #insurtech #funding #insurance

Latin America exhibits a lower insurance penetration compared to other regions. For instance, less than 15% of the population has life insurance, and less than 25% of vehicle fleets are insured. This low penetration presents a significant opportunity for growth in the #insurtech sector. Read the rest of the analysis here 👉 https://lnkd.in/dm5tG84c

Sunday Musings: A Glimpse into the Insurtech Future - Embedded Insurance 🌟 Happy Sunday, everyone! Today's read has taken me on an intriguing journey into the heart of embedded insurance—a sector poised to redefine our industry with a staggering $3 trillion market opportunity. Imagine insurance seamlessly integrated into everyday transactions, invisibly aligning with our life’s most significant moments when we need it the most. In the article, the success stories of Ant Group and Uber stand out, illustrating the transformative power of embedded insurance. Ant Group, with its enormous user base thanks to Alipay, has tapped into an underserved market, particularly in low-income rural areas. By not just reselling existing products but creating a platform connecting demand with supply, they now offer 2,000 customized, affordable, and flexible insurance products, highlighting the untapped potential within our reach. Similarly, Uber’s approach to providing various insurance solutions tailored to the unique needs of its drivers underscores the shift towards more personalized and flexible insurance offerings. These examples not only showcase successful implementations but also the profound impact embedded insurance can have on customer engagement and satisfaction. At Octamile , we dream of a world where no one is left unprotected, and this article reinforces our belief in the power of innovation. It's more than just technology; it's about weaving a safety net into the fabric of our daily lives, making insurance a natural part of our everyday experiences. As we stand at this crossroads, the question that emerges is not if but how we can integrate such innovative solutions into our offerings. How can we, as leaders, innovators, and visionaries, contribute to this transformative journey? This thought-provoking piece is a call to action for all of us in the fintech and insurtech sectors. Let's explore and embrace the opportunities embedded insurance presents. Join me in envisaging a future where insurance is not an afterthought but an integrated, life-enhancing tool. Dive into this fascinating exploration of embedded insurance, and let's discuss how we can collectively redefine the boundaries of our industry. How will you be part of this revolution? #FutureOfInsurance #SundayInspiration #EmbeddedInsurance #OctamileJourney #insurancerevolution https://lnkd.in/ex4PJCSN Let this be the spark that ignites our collective imaginations and drives us toward a more secure, inclusive, and innovative future.

Inaugural InsurTech New England Sheds Light on Modernizing Insurance by Brett M. On February 28th, the inaugural event held by InsurTech New England brought together 80 insurance professionals in Boston to delve into the intricacies of modernizing brands entrenched in legacy systems. One highlight of the evening was the panel discussion “The Challenges of Modernizing Insurance Startup & Incumbent Views,” a timely and interactive conversation particularly as the insurance industry grapples with rapid technological advancements amidst aging legacy frameworks. Moderated by Anna Kupik—Principal and Recruiter, Galecki Search Associates—the panel included distinguished guests from across P&C insurance segments: Jamie Luce (Founder & CEO, AIR Parametric), Meghan Titzer, CPCU (Go-to-Market Lead, CAPE Analytics), Rachel Switchenko (VP of Customer Solutions, Plymouth Rock Assurance), and Kate Terry (CEO and Co-founder of Surround Insurance). The conversation covered a spectrum of front-of-mind topics, from adapting to evolving consumer needs to navigating challenges in different market segments, as well as using data efficiently, implementing AI, and managing industry-wide profitability issues. “What emerged from the discussion was a sense that our community—legacy and tech-enabled carriers alike—face similar challenges, even if approaching them from different perspectives,” said Kupik. “At the heart of the need to modernize is the more digitally-aware and evolved insurance customer. This dialogue was a great kick-off for the growing, engaged InsurTech New England community.” The Responsibility to an Evolving Insurance Customer Terry emphasized that insurance tends to overlook younger customer.... READ THE FULL ARTICLE HERE: https://lnkd.in/emzzBBrr

Agents and brokers are the backbone of insurance distribution, with over 60% of P&C insurance and more than 80% of commercial insurance sold by third-party agents in the U.S. Organizations that have attempted to bypass agents quickly realized their indispensable role. As insurance and risks grow more complex, agents will become even more crucial in the insurance placement process. Many of our members at the InsurTech Association are focused on improving the capabilities of agents and brokers. And a large part of the work I'm doing at my startup, Turris, is also towards that end. That's why I'm thrilled to moderate a panel on the Evolution of the Brokering Landscape at Insurtech Insights! Joining me are: Grace Hanson, Former Chief Claims Officer, Hippo Insurance Brandy Burch, CEO, benefitbay® Tiffine Wang, Partner - Investments, MS&AD Ventures Al Bagiro, PhD, CPCU, ARM, PMP, CISM, CASP, CEO & CTO, Cogo Insurance We'll be discussing: 💡 The evolving capabilities that agents and brokers expect from their carrier/MGA partners, 💡 The value brokers bring to the distribution and claims process and how technology will further support this, 💡 And of course, the role AI will play in this evolution. If you're an agent or broker, this is a fantastic opportunity to join the discussion. And if you work for an MGA or carrier, come learn why understanding these changes is vital for your organization.