Welcome to Future Insurer newsletter #8!
It’s sometimes hard to see the forest from the trees with so much InsurTech News. In this fortnightly newsletter, I’ll be picking out some of the most interesting #insurtech and #insurance developments from the past fortnight.
If you’re new here, welcome! 👋 Make sure to hit subscribe if you want to receive this each fortnight. Now onto this week’s top picks…
In this edition’s news:
⚛️ Marsh launches Hydrogen energy insurance facility
Clean fuels are the way of the future. But what insurance is available for such projects? Marsh, with Liberty Mutual Insurance Group and AIG, have developed a first in the market facility to insure green and blue hydrogen energy projects. Cover is available for the construction or startup phase, or an all risks policy that extends to first year operations. There is certainly more to come from other insurers on these emerging risks.
❓ Computer says ‘yes’…could proposed new laws pave the way for robo advice?
The Australian Government Treasury has released for consultation a proposals paper relating to the Quality of Advice Review. The proposals including removing some of the regulatory burden associated with providing personal advice including by insurers. It is pleasing to see consideration of digital advice providers. Robo-advice has fallen out of vogue in Australia due to regulatory requirements however query whether the proposals go far enough to encourage quality and affordable robo-advice. Consultation is open until 23 September.
📈Gallagher Re releases Q2 2022 Global InsurTech Report
Gallagher Re has released the Q2 2022 Global InsurTech Report. In the last few Future Insurer newsletters I’ve been covering some InsurTech success stories in the face of a global economic downturn and the Gallagher Re report supports this finding. Promising stats for InsurTechs in the latest quarter with Q2 funding up 8% on the prior quarter. Total disclosed global InsurTech funding in Q2 was $2.41 billion. Average deal size increased for the quarter by 18.3% — $22.11 million in Q2 compared to $18.72 million in Q1.
🤫 End to end product regulation still high on the agenda
Australian prudential supervisors are still taking a greater interest in insurance product regulation following the use of outdated pandemic exclusions in business interruption insurance policies. In a recent speech, APRA’s deputy chair Helen Rowell referred to the incident as a ‘near miss’ for the industry. Last year, APRA wrote to insurers asking them to identify any other similar issues in product lines, such as silent cyber.
🚗 More telematics news
In the last Future Insurer newsletter I queried whether Pay How You Drive is back in fashion. It could possibly be with another Australian startup now launching its white label solution to insurers. Behave and Save provides a subscription-based telematics platform for insurers, tracking both usage and driver behaviour. Is the industry at a turning point?
🇬🇧 For UK InsurTechs: Are you thinking of bringing your InsurTech to Australia? Check out this recent article authored with the UK Department for International Trade for UK InsurTechs looking to make the move.
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Tim Chan is an insurance & insurtech lawyer at global law firm Norton Rose Fulbright and Founder of The InsurTech Lawyer blog. He regularly advises insurers and startups on emerging legal issues affecting the industry. Follow Tim on Twitter: @timinsydney