Aon to offer AI, machine learning tools with new InsurTech partnership

Global re/insurance broker Aon has struck a strategic alliance with Zesty.ai, an InsurTech startup which uses Artificial Intelligence (AI) and machine …

Global re/insurance broker Aon has struck a strategic alliance with Zesty.ai, an InsurTech startup which uses Artificial Intelligence (AI) and machine learning to process satellite imagery, data from aircraft, physical characteristics of properties, building permit data and energy consumption data in order to generate granular risk analysis of buildings and their surroundings.

Aon ZestyUsing Aon’s distribution network, insurers will be able to evaluate their portfolio risk through Zesty.ai’s wildfire risk model (Z-FIRE) and obtain high fidelity property insights for underwriting both catastrophic and attritional risk.

Z-FIRE utilises machine learning to combine vital property details – including vegetation, building materials, topography, weather patterns among others – with actual loss data.

Aon says Z-FIRE complements its U.S wildfire catastrophe model from Impact Forecasting for reinsurance purchase and exposure management.

“Immediate access to new, useable and meaningful data insights is continuing to advance insurance underwriting. Instant insights on risk are becoming an increasingly important element for insurers as they modernize their underwriting platforms,” said George deMenocal, President and U.S Chief Executive Officer of Aon’s Reinsurance Solutions business.

“This technology evolution, coupled with new partnerships, brings opportunities for Aon to deliver new products that meet clients’ needs today and tomorrow, in a transparent and efficient way.”

Insurers will also be able to leverage Zesty.ai’s Property Risk Analytics Platform to more accurately capture individual property characteristics by providing 130 billion data points on U.S properties

Jobay Cooney, Senior Managing Director and Head of InsurTech for Aon, stated, “Aon is committed to helping clients adopt new technologies that advance their strategic initiatives.”

“We chose to partner with Zesty.ai as they have demonstrated they are an innovative leader in this space and that insurers can derive value from their granular data and visual assessments.”

Attila Toth, CEO of Zesty.ai, added, “We are honored that Aon has chosen to enter into a strategic alliance with Zesty.ai. Aon is the trusted advisor to insurance carriers globally with deep expertise in catastrophic risk management accumulated over decades.”

“As a nimble InsurTech, Zesty.ai can bring the latest technologies, such as AI, machine, learning, and big data analytics to the Property & Casualty insurance industry. In collaboration with Aon, we can offer carriers a powerful, data-driven solution to better underwrite, manage risk and delight customers with a digital buying experience.”

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UK insurtech gets corporate fit with legal toolkit

The UK Insurtech Board has launched a new toolkit of legal documents to help insurtech start-ups make commercial relationships with corporate …

The UK Insurtech Board has launched a new toolkit of legal documents to help insurtech start-ups make commercial relationships with corporate partners.

"It's clear that standard legal issues can stand in the way of collaboration”

“It’s clear that standard legal issues can stand in the way of collaboration”

The board – an initiative assisted by Tech Nation as part of the Fintech Delivery Panel (FDP) convened by HM Treasury – says the documents can be downloaded at no cost from the Tech Nation website.

It’s all about putting your mind at ease when it comes to legalese.

Tech Nation chair Eileen Burbidge, who is also HM Treasury Envoy for Fintech and chairs the FDP, says. “We’ve been encouraged by ever-growing willingness and interest from insurance companies to work with innovative start-ups as a means of driving innovation, but it’s clear that standard legal issues can stand in the way of collaboration.”

She adds: “The insurance sector has its own contractual norms and practices and without legal support, early stage businesses are disadvantaged in drawing up and negotiating documents that meet the expectations of potential partners. This new toolkit addresses that problem.”

The toolkit was produced in partnership with law firms Dentons and Simmons & Simmons.

It covers various contractual and commercial relationship issues that arise in the course of negotiations with potential partners.

These include a non-disclosure agreement, a terms of business agreement, and amendments for a managing general agent agreement.

Tech Nation also cites Dealroom data which shows UK insurtech companies attracted $1.7 billion in investment (including M&A) in 2018, “illustrating the enormous interest in a sector that is revolutionising financial services”.

You can download the documents at Tech Nation’s website here.

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Flipkart co-founder Binny Bansal, others put in $65 million in Amazon-backed Acko General …

Acko General Insurance has raised $65 million from Flipkart co-founder Binny Bansal, RPS Ventures led by Kabir Misra, ex-managing partner at …
amazon, flipkart, e commerce sector, e commerce industryamazon, flipkart, e commerce sector, e commerce industryExisting investors such as Amazon, Accel, SAIF and TechPro Ventures have also participated in the Series C round, the firm said in a release on Wednesday.

Acko General Insurance has raised $65 million from Flipkart co-founder Binny Bansal, RPS Ventures led by Kabir Misra, ex-managing partner at SoftBank, and Intact Ventures. Existing investors such as Amazon, Accel, SAIF and TechPro Ventures have also participated in the Series C round, the firm said in a release on Wednesday. With this latest infusion, Acko has now attracted $107 million. Previously, Acko had raised $30 million in seed funding and later $12 million in a Series B round led by Amazon.

In a recent interview with FE, Dua had said the company is aiming to break-even in its fourth to fifth year of operations. “We are still 18 months old. Typically, general insurance companies take seven to eight years to break-even. Given the kind of model we have, we target to break-even in the fourth to fifth year of operations,” he explained.

Dua noted one big advantage of buying a policy from Acko is that it’s cheaper. “About 80% of customers find our products to be 10-30% cheaper. Moreover, in the top 10-12 cities of the country, we are able to guarantee a claim-settlement in a turnaround time of three days. We pick up the car, get it repaired and deliver it back to the policyholder — all in three days. We are expanding this service to other cities also,” Dua said.

“Technology-led insurance is expected to play a significant role in the growth of the underpenetrated insurance sector in India. Acko is the pioneer of digital-native insurance and I am delighted to partner in its exciting growth journey,” Binny Bansal said.

Also read: Private companies’ investment plans fall for last 7 years in row; RBI study lists three reasons

“We are excited to put the company on a rapid growth trajectory with this round of funding. Insurance is a capital-intensive sector and as we grow, we will be raising more capital in compliance with the guidelines of the regulator,” Dua said in the release.

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Some digital health startups that could go IPO in 2019!

Investors: China Merchants Securities, Hillhouse Capital Group, Ally Bridge Group, WuXi NextCODE, Blue Pool Capital, Sequoia Capital China, …

While there are big expectations for tech companies looking to go public in 2019, surprisingly there aren’t many digital health companies on that list. That’s despite a record $8.1 billion that was invested in the space in 2018, a 42 percent increase over 2017’s $5.7 billion, which was the record at the time.

While monster companies like Airbnb, Uber and Slack have all said they will IPO this year, there are also a number of companies in digital health that have raised large amounts of money, and it stands to reason that, eventually, some of them will decide to test the public market as well.

So far this year, biopharmaceutical companies Gossamer Bio and Alector went public, raising $276 million and $176 million, respectively. Livongo, which Applied health signals companies Livongo is reportedly already looking to go public this year, as is diagnostics company Grail.

This is a list of some of the companies that could be included in the 2019 IPO class:

Editor’s note: On April 4, we’re taking the topic of mental and behavioral health back on stage with our first salon of 2019: Future of Mental and Behavioral Health.

Register now so you can reserve a seat. There are 250 available. Join Aydin Senkut (Felicis), Sonia Arrison (Author, 100 Plus), Alex Morgan (Khosla Ventures), Dr. Archana Dubey (HP), Mark Goldstein (UCSF HealthHub), Eva Borden (Cigna) and executives from Talkspace, Happify, Omada Health and more!

Founded: 2014

Disrupting market: Pharma, health systems

Description: Mountain View, Ca-based Livongo is a digital service for people with diabetes and other chronic conditions. The company’s product monitors patients glucose and gives them real-time data that is shared with Livongo coaches. This 24/7 monitoring creates more personalized actionable treatment options. Livongo sells directly to self-insured employers, as well as healthcare systems, such as Humana and Blue Cross (both of whom are investors). Livongo sells its service to more than 600 employer-sponsored health plans and insurers at between $60-$70 a month per employee, and is on track to generate more than $100 million a year, by servicing 120,000 patients, according to the WSJ. The company also treats other chronic conditions, such as obesity and heart disease. The typical outlay for a person with diabetes is more than $10k a year. So self-insured employers are motivated to find solutions, such as Livongo, to improve their employees’ conditions.

Amount raised: $240 million

Investors: Zaffre Investments, M12, Logo of Merck Global Health Innovation Fund Merck Global Health Innovation Fund, Kinnevik AB, Kleiner Perkins, General Catalyst, 7wire Ventures, Sapphire Ventures, DFJ, Echo Health Ventures

Valuation: $800 million

Founded: 2012

Disrupting market: Insurance

Description: Oscar Health is a tech-driven health insurance company that takes a concierge-like approach to healthcare. Rather than having the insurer be a faceless middleman, Oscar’s mission is to be more personal — treating patients like customers and giving them tools to be more proactive. Oscar provides a concierge team, including care guides and a nurse, who provide all sorts of services, from referrals to specialists to managing your condition. You can also use their Doctor on call service (text or call) to fill a prescription or just ask for advice. Have a dry patch of skin? Take a photo and text to Oscar. You can get answers in minutes. Oscar is also testing out brick-and-mortar clinics with its Oscar Center, facilitating wellness programs, such as yoga. Oscar Health was born during the Obamacare era when private exchanges were encouraged. Oscar’s Mario Schlosser believed that in the new healthcare paradigm, consumers would be greater charge of their healthcare, including their ability to select their plans and keep them as they move from employer to employer. While the exchanges haven’t worked as well as expected, Oscar has continued to thrive, with 257,000 members across nine states.

Here’s a great interview between Bambi Roizen and Mario Schlosser and Brian Singerman of Founders Fund about the beginnings of Oscar.

Amount raised: $1.3 billion

Investors:

Valuation: $3.2 billion

Image result for Bright Health logo

Founded: 2015

Disrupting market: Insurance

Description: Bright Health, based in Minneapolis, Mn, is another tech-centered healthcare insurance company, with a mission to decomplexify (our words) the complicated world of insurance. Unlike Oscar, which has a network of nurses, coaches, doctors that make up its concierge and doctor-on-call team, Bright Health partners with clinics and local partners and works with their teams. In 2019, Bright Health started offering individual, family and Medicare Advantage plans in Ohio, Tennessee and New York, adding to its presence in Arizona, Colorado and Alabama.

Amount raised: $440 million

Investors: Declaration Partners, Meritech Capital, Bessemer Venture Partners, Cross Creek Advisors, Flare Capital, Greenspring Associates, Greycroft Partners, New Enterprise Associates, Redpoint Ventures, Town Hall Ventures

Valuation: $950 million

Founded: 2013

Disrupting market: Insurance

Description: Clover is another new tech-and-patient-centric healthcare insurance company born in the last decade to revolutionize the insurance industry. The company also partners with physicians and has its own care team working to assist members. Unlike the other two insurers we mentioned, Clover works specifically on Medicare Advantage (Medicare sold via private insurers).

Read Clover CEO Vivek Garipalli’s thoughts on How big data is improving patient outcomes.

Amount raised: $925 million

Investors: Greenoaks Capital , DNA Capital, GV, Expanding Capital, Nexus Venture Partners, Refractor Capital, LifeForce Captial, Spark Capital

Valuation: $1.2 billion

Founded: 2012

Disrupting market: Telemedicine

Description: Doctor on Demand allows patients to have virtual visits with their doctor, allowing them to connect to physicians using video visits, with each one costing $40 for a 15-minute appointment. If the call goes over the allotted time, patients have the ability to pay another $40 for the same amount of time. In 2017, the company also began providing patients with fully integrated laboratory services, so when a doctor orders a lab test, patients can choose the lab experience that best fits their needs according to price, location, and insurance rather than having a provider or institution dictate the experience. Patients then receive results and next steps through the app. The company connects over two million patients nationwide and has hundreds of enterprise customers including four of the Fortune 10 companies, and over two dozen health plan partners.

Amount raised: $106.7 million

Investors: Princeville Global, Goldman Sachs Investment Partners, Venrock, Shasta Ventures, Tenaya Capital, Lerer Hippeau Ventures, Qualcomm Ventures, Sir Richard Branson, Sherpa Ventures, World Innovation Lab, Blue Cloud Ventures, Ridgeview Asset Management

Valuation: Undisclosed

Founded: 2016

Disrupting market: Genomics

Description: Grail hopes to detect cancer at the point it can be cured. It focuses on understanding the the human genome — our body’s genetic information — to provide medical breakthroughs in oncology. Grail is riding on the drop in cost to sequence the human genome, which cost $100 million in 2003, and under $50 today.

Amount raised: $1.6 billion

Investors: China Merchants Securities, Hillhouse Capital Group, Ally Bridge Group, WuXi NextCODE, Blue Pool Capital, Sequoia Capital China, 6 Dimensions China, HuangPu River, Capital, ICBC International, ARCH Venture Partners

Valuation: $3.2 billion

Founded: 2015

Disrupting market: Genomics

Description: Like Grail, Helix is part of the next-gen sequencing (NGS) revolution. Its mission is to democratize human-genome testing, enabling app developers to make DNA testing products that consumers can buy online on the Helix marketplace. Developers leverage Helix’s library of human genomes processed via NGS, which apparently are more data-rich than genomes tested using genotyping. “Using a book analogy, genotyping is like looking at a few scattered words on a page, whereas sequencing is like reading entire sentences, paragraphs and chapters. Most products for DNA test kits are based on genotyping, because it’s an older technology and sequencing used to be too expensive,” according to Chris Glode, Chief Product Officer at Helix. Helix has more than 35 DNA products, consisting of those that test your ancestry as well as health.

Amount raised: $300 million

Investors: Sutter Hill Ventures, Mayo Cliic, DFJ Growth, Kleiner Perkins, Illumina, Temasek Holdings, Warburg Pincus, LaunchCapital

Valuation: Undisclosed

Image result for collective health logo

Founded: 2013

Disrupting market: Insurance

Description: Collective Health another tech-driven health insurance company focused on working with self-insured employers and helping them navigate the complex healthcare ecosystem. Their value-add to employers is helping their employees understand health insurance in a way they’re used to: with more user-friendly interfaces and easy-to-understand text — something our tech-savvy society has become used to. Only 4 percent of Americans understand common health insurance terms, according to Collective. The company wants to change that by simplifying coverage details and processing of claims and documents, which in some cases still use fax machines!

Amount raised: $229 million

Investors: Mubadala Investment Company, Founders Fund, GV, NEA, Green Bay Ventures, Sun Life Financial, Maverick Ventures Israel, RRE Ventures, MSA Capital

Valuation: $1 billion

(Image source: future-customer.com)

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Acko claims to raise $65M from investors including Flipkart

Acko on Wednesday said it has raised USD 65 million from investors, including Flipkart co-founder Binny Bansal. The round of funding also saw …

Acko on Wednesday said it has raised USD 65 million from investors, including Flipkart co-founder Binny Bansal. The round of funding also saw participation from existing investors such as Amazon, Accel, SAIF and TechPro Ventures, the company said in a statement.

Founded in 2016, Acko General Insurance claims to be the country’s first digital native insurer, offers an intuitive purchase experience, cheaper prices and stress-free claims. The company uses a direct-to-consumer approach for distributing motor insurance, allowing for favourable risk selection and superior underwriting.

(With inputs from agencies.)

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