Welcome to Future Insurer #15!
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:
🖥️ The train to regulation is now arriving on (digital) platform 1
The UK government has released the Digital Markets, Competition and Consumer Bill. If passed, the law will apply to companies that have “strategic market status” in the digital economy such as online platforms. It will implement more stringer fair trading, fair dealing and transparency obligations on such companies. Australia’s Competition and Consumer Commission is currently reviewing digital platform services with a final report due in 2025. With insurance being increasingly sold through online intermediaries in embedded offerings, this is a space to watch.
📈 InsurTech investment activity bounces back
Despite last quarter’s results, there is still love for InsurTech. According to Gallagher Re’s latest report, funding for InsurTech globally increased 37.6% quarter on quarter, from USD1.01B to USD1.39B. The average deal size increased 25.3% quarter on quarter. Stats are impacted by a mega round raise by health insurtech Gravie which raised USD 179m.
⚙️ The race to regulate AI around the world
Insurers wondering how AI is impacting their customers (as well as their own operations) can take a look at some reviews that are unfolding around the world. The UK Competition and Markets Authority has launched an Initial Review to explore competition & barriers to entry, impact on competition in other markets, and consumer protection. In the USA, the National Telecommunications and Information Administration is seeking feedback on a proposed accountability framework such as a certification or audit assessment to show that an AI system is safe and trustworthy.
💰 InsurTech launches “cash back” for life insurance
Keep Insurance Co. has soft launched in Australia, providing a unique opportunity for customers to receive some of the commission usually retained by financial advisers for life insurance. The completely digital offering uses technology to streamline general advice and provide access to a range of life products in the market.
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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
Disclaimer: This newsletter provides general information only and does not constitute legal, financial or other professional advice. It does not address the circumstances of any particular individual or entity. You should seek your own professional advice.