According to The Pulse of Fintech Report, investments in UK insurtech surpassed $1 billion in 2018, from $792 million in 2017. Surprisingly, this brushes aside a global trend which tends to depict a huge decline in insurtech investments worldwide.
Needless to say, most UK’s fintech and insurtech startups are based in London, as it is one of the world’s biggest financial centres these days. The city, with its two university centres so close at hand (Oxford and Cambridge), also offers good access to experts and innovative technologies, with artificial intelligence and machine learning at the helm. No wonder the location attracts so many investors and business owners interested in developing highly advanced solutions for the insurance sector. So many that this might be a good time to get to know some of them, in order to have a better idea of how well-developed this market is.
Therefore, with this in mind, we’ve prepared another brief overview of the top eight fintech and insurtech companies that are definitely worth following — perhaps not only in 2019, but also in the years to come.
Tifgroup is now one of the biggest and most innovative travel insurance providers in the UK. They offer a range of highly flexible products, services and tools that are designed to fulfil the specific needs of every client — both corporate partners and policyholders. Tifgroup has, among other things, a team of trained underwriters at the business client’s disposal, 24/7 multilingual emergency medical assistance, and a special screening tool for the precise evaluation of a policyholder’s health (called Protectif). All of these things combined, along with very personal and friendly customer service, make Tifgroup the number one choice for many brokers, insurers and intermediaries in the UK.
UnderwriteMe has The Protection Platform, created specifically as a place for intermediaries to not only get quotes and make accurate comparisons but also where they can underwrite and sell a wide variety of insurance products from a number of different providers. Clients always receive up-to-date, highly accurate and personalized search results on the platform. Of course, this wouldn’t be possible without incorporating advanced Big Data and Business Analytics solutions. UnderwriteMe ensures a flexible, state-of-the-art experience for any intermediary, allowing them to sell a chosen product in just a few simple steps.
Tractable is totally powered by artificial intelligence (AI) and deep learning technology. Their AI predicts the repair costs of an automobile or a property just by scanning and looking at photos showing the damage. Therefore, settling claims goes faster and policyholders can get their money back in no time. In the case of an accident or natural disaster (like a fire, flood or hurricane), Tractable AI accelerates the process of restoring livelihoods by collecting and analysing data on the damage and then providing the partner insurer with instant and precise estimations. And the technology is constantly learning, getting better and more accurate with every new visual task.
The Cytora Risk Engine harnesses AI to transform the foundation of underwriting for commercial insurance providers. It allows insurers to improve their underwriting efficiency and accuracy by learning the patterns of various risk profiles over time. Cytora offers an API platform for building customized components, tailored to the insurer’s preferences. In turn, insurers can use the platform to improve figures for expected losses, increase their quote volume and reduce expenses. The solution is fully configurable to serve different business needs and it’s easy to integrate with any client’s core system.
Starling offers a bank account that not only comes with a debit card but a mobile application too. This way, managing finances is very easy and can be done directly from a smartphone, with 24/7 support. Users get notifications every time they receive or spend money, and they can also get insights that present a detailed view of their spending habits. It’s possible to have a Starling Euro account, business account, or even a joint account with a life partner, making it easier to manage a monthly household budget. Plus, Starling Bank allows users to split the bill with friends, connect an account to a digital wallet (like Apple Pay or Fitbit Pay) for card-free shopping, and they don’t charge for any transactions or ATM withdrawals overseas.
Exo is an AI-powered banking organization that allows personal users to invest their money wherever they want while the platform does the calculations and analysis for them — in order to help them make the best possible decisions. Exo uses all the information it has about its clients to build unique portfolios for them — individual preferences, experiences and expectations sit at the core of every Exo decision. Also, the portfolios adapt to market fluctuations, and users can easily track their evolution — it’s the active risk management solution that makes any investor feel more secure.
As the first open banking-based business, Bud is creating a new customer experience by connecting bank account data with both modern fintech and more traditional financial service providers. They’ve built a lot of data enrichment features, like ‘Smart Balance’ that helps users spend their money wisely, and ‘Goals’ which can be useful while planning expenses. It adds value to many services offered by financial institutions — making consumer lives and finances much easier to manage on a daily basis. The Bud platform is secure, fast and effective — even for large organizations — and the open data API is available to developers.
Monzo is an intelligent bank for people who like to have full control over their financial lives, whenever and wherever they are — just by using a mobile app. Having a Monzo account also includes smart budgeting options to help users manage money more consciously and effectively, makes travelling stress-free with the Monzo card — which is accepted worldwide, and even lets users earn money through interest on savings. There are also some extra features to help account holders save money effortlessly, manage joint expenses together with a partner, flexible overdrafts, and so on. Also, Monzo works with a wide variety of other service providers, so it can easily become a finance control centre for any individual.
Based on this brief overview of some of London’s top fintech and insurtech companies, we might say that the industry is developing hand-in-hand with the digital transformation.
Automated processes, real-time updates, taking a mobile-first approach, having high levels of customization and flexibility, and leveraging artificial intelligence and machine learning solutions — all these set legacy systems aside, and any company that cannot keep up, finds itself lagging far behind the more innovative ones.
If you want to get a wider picture of UK’s fintech and insurtech scene, we invite you to read the first part of our blog post.