Daily Fintech Conversations

Which Venture will be the first big Insurtech Winner?

My error should be “Neosurance?” so much for memorable.

@Jonathan @matteo.carbone do we think NeoSurance as a generic name will get adopted like NeoBank?

i didn’t know if the founder haa in mind to do something on banking.
I’m figuring out he will not be super happy to think about his brand as a “generic”

Do not believe NeoSurance is a generic, neo is from Greek for young, surance has a number of meaning derived from assurance - insurance terms. It “might” be possible to get a TM on the mark, but whatever one needs the .com to scale. [Re my mail to Efi NeoBank/s] In terms of the public three generations will think it is cognitive to The Matix,

I dont think we have seen the category killer yet.

Lemonade has some potential but we (or at least I) dont have any real info to evaluate what it is they are doing. Just something employing P2P & behavioral economics. I can see them adding new data points into the actuarial / underwriting process, but then they will have to get that approved by each state’s office of insurance regulators. They are the first mover, but they have a lot of moving to do.

On the Data / IOT front, I am not as up to date on the players, but someone will take the lead and get acquired in the next 2-3 years, is my guess. What lasting change that will bring to the industry is a question in my mind. You have Google who now own’s Nest, has eyeballed the Insurance industry, and knows Data pretty well. I would not be surprised to see them come up with their own offering, and maybe even capitalize their own carrier to support the Data venture.

I am rather pessimistic on any business without any core business model evolution. For example, on the idea of Just In Time Coverage, simply selling monthly/weekly/daily policies instead of annual does not excite me. Rather selling by the Mile/Kilometer is mildly more interesting, but still does not exhibit a departure from the core set Insurance Functions, just a new pricing model.

I am really not sure we have seen the first big winner yet. We may see some nice several hundred million plus acquisitions in the next couple of years, but I think those will be looked at in hindsight as having been overvalued.

I think simply operating the function set of an Insurance Company (as embodied in the Industrial age) will become more & more of a loss leader service, it will need to be coupled with some additional offerings to make any money.


My bet is Lemonade because they built from the ground up and that = the all important partnerships
The other area I run with is the aggregate / the “smart cart” technology like 4 like. Good for front of till IoT voice activation platforms and consumers.
The other strategy that breaks through is whereby a chosen number of TLD’s in a particular area of commerce would be developed as authoritative platforms specific to the root domain which then serves (and persists) the common elements of a new aggregate brand carried by omni-channel platforms but they are a rare commodity. Any assicurazione fintechs teams in Italy contact me.

I don’t think owning a generic.com url makes much difference these days. That feels like the Dot Com era and since then we have search, social and mobile. I hardly notice a url these days let alone a tld.

I tend to notice if I’m looking at the brand name com or cc rather than .eu .club.daily-fintech.passle.net.
The generic is about marketing / lead generation. The “com” is about the cachet / credibility footsie 500 companies and latterly every Chinese digital brand Alibaba Baidu JD Tencent the list is long even at a lower level [http://www.dnjournal.com/ytd-sales-charts.htm] Name me a credible insurance group of scale that is not .com ? Has nothing to do with the .com era. If I could afford it would I buy 88.com for commercials status in the China ? For Sure. How much would you pay for Lemonade. com : ) not by the glass. You could probably buy Lemonade.eu. One to watch is the $1.5b USD IPO for http://line.me/en/ The registrant of Line .com is a successful Chinese business man who currently refuses to sell reputedly at $10m. Line.me will bleed traffic until a deal is agreed. That is reality.

@Jonathan I see your point. I was thinking traffic, but you are thinking brand credibility. True. Owning your URL with a .com TLD shows some seriousness.

They are one in the same.

Interesting comments on a Linkedin post shared by Pierluigi Fasano re incumbents & disruption, I would place the link but as a share but it would not include the comments.
What is your opinion on = Chris Tabb commented: All that needs to happen is someone to produce an insurance PaaS that deals with the regulatory issues. And allows the possibility of an insurance business in a box concept … That platform provider could partner with risk engines and insurance providers and integrate via API’s.

@Jonathan that idea makes sense to me, a bit like Fidor in banking

Thank you, Very interesting. My knowledge is limited and you / Efi have forgotten more than I know in terms of the industry. Ref "Barry RabkinI must admit when I hear the term “fairness” my first reaction is to reach for the barf-bag the airlines provide in the seat back. Fairness is as far from absolute or definable as any person can get: that is why we have regulations and lawyers and courts … and is why the “insurance contract” is a legal document.

To me, through my 4+ decades in the insurance industry, I’ve described insurance as a legal contract with a financial obligation (i.e. assuming the loss event meets the terms, conditions, and restrictions of the policy).

No amount of “kumbaya” is going to change that reality"

My interest is in being seen (back to Italy) / found at all as aggregate / the “smart cart” technology like 4 like holds the moral ground.

The PaaS for insurance and enabling any community or group leader (unlicensed) to start up an “insurance in a box” is very much in KarmaCoverage’s deck of cards.

The catch is that to disrupt “insurance”, you cant Be “insurance”.

To say otherwise is like saying you can disrupt the gasoline engine, by making an improved gasoline engine. An electric engine however will get the disruption job done.

Separating the “why” from the “how” of insurance is important. Focusing on the reason Why we want an engine, can free your thinking from the from the confines of How a gasoline or electric engine works. Surely understanding How insurance works confines innovation and distracts from seeing a clear vision.

There is a method that predates “insurance” by a 1000 years, it is still operated today, but it’s business model has been “insurafied” to the point of no return.

@Jonathan can you post a screen shot or link to the comments by Chris Tabb?

Remember, especially regarding P2P Coverage, “peer presure is a b*tch”. This is why Lemonade has such a focus on Behavioral Economics, and their UI/UX.

Screen shot + comments is like pulling teeth to capture. Paste & copied below think it is a good discussion and hopeful people will be okay with my opening this out to others.

Attachment not getting through ? KarmaCoverage mail me: venditaauto1@gmail.com & will forward.

Mainstream Insurance : The technological wheels are turning but preceded by a man on foot waving a red flag. Meanwhile Swiss Fintech aggregator Anivo secured a partnership with Switzerland’s national railway company

@afaessler I am not aware of any. Am looping in @amy.radin and @RickHuckstep who both have a good panoramic view of Insurtech in case they have the answer.

I agree. @amy.radin is starting to tackle this monster of a subject here:

Today, Lemonade announced they were open for business. Not bad considering they only announced their initial seed round at the end of 2015, even though it was a staggering $15m!

Lemonade are a full stack insurance carrier, which sets them apart from all the other new insurance businesses that fall under the InsurTech banner. They’ve also gone the hard route, by getting a licence in New York, regarded the toughest of the US regulators to satisfy.

They are also the first to fundamentally address the conflict of interest/adversarial relationship between insured and insurer. And they’ve done it with a P2P model.

And they are a fully automated platform, from quote and buy, underwriting to claims and settlement. All done on a mobile device chatting to a machine!

I’ll be writing up a series of detailed articles on what’s behind Lemonade next month, but for now, here’s my initial thoughts on Lemonade and why, IMHO, insurance will never be the same again!



I’m happy to see that 3.5 years later, both Embroker and Montoux are still going strong :muscle:

My startup? :boom::sweat_smile:

I’m hoping to rise from the ashes soon though. To be continued… :slight_smile: