Innovative insurtechs are providing impetus to the growth of embedded insurance space globally

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With the rise in digitization, real-time bundling and sale of insurance at the time of purchase of a product or service have seen high demand and thus, embedded insurance start-ups have been gaining traction around the globe over the last few quarters. Consequently, new innovative products are observed in this space which is constantly evolving and insurtechs play a significant role in the innovation of the emerging product. This space also caught the eyes of several investors who also want to get a share of the growing market. For instance,

• In September 2022, an embedded insurance startup, Hakuna, raised around US$3.9 million in a seed funding round led by Earlybird along with other investors such as Visionaries Club, Discovery Ventures, etc. This fresh capital will help the Munich-headquartered startup to develop its insurance product and expand its business internationally.

Hakuna, which provides access to insurance products for online merchants big or small, has catered to only the top 1% of the industry. Notably, the product can be integrated by any leading e-commerce platform such as Shopify, Shopware, Magento, and BigCommerce. Since the e-commerce space is constantly growing; the firm’s product is seeing increased demand. As retailers are adopting digital processes, newer demands from consumers looking for more convenience also need to be met. Now consumers not only demand access to products, but they demand added value and support. This is where Hakuna enters with its embedded protection plans along with extended warranties on the products purchased online. 

Hakuna, which already partnered with established merchants such as Watchmaster, Office Partner, etc. is expected to further increase its client base over the next four to six quarters.

• In July 2022, another German insurtech, Element, raised around €21.4 million in a Series B funding round led by pension fund VZB which will be utilized by the startup to expand its business. Apart from this, the platform also plans to include new product offerings in its portfolio. This digital insurance company specifically enables its partners to embed insurance products into their system at any stage while taking care of the regulatory aspects also. Apart from this, the platform also provides Property and Casualty solutions as well as claims settlement services for its partners. 

Until now, Element had acquired 200,000 customers with its products such as cloud failure insurance, real estate purchase guarantee, etc., and reached sales of €10.4 million in 2021. Importantly, the platform has been witnessing over 65% increase in revenue and it plans to grow it further to reach 100% in 2022.

• In August 2022, India-based insurtech start-up, MetaMorphoSys raised US$3 million in a funding round. This funding round was led by Capital 2B along with other angel investors and will be utilized by the platform to further develop and scale its platform, and expand internationally. Notably, several insurance companies took the help of this platform to launch their products, strengthen their sales force and identify fraud in their business. Moreover, MetaMorphoSys helped in optimizing the value chain starting from customer acquisition to customer engagement, together with embedded insurance to the insurance companies.

MetaMorphoSys through its APIs also streamlines its customers’ experience from onboarding to servicing to processing while the platform itself gets integrated with these traditional insurance companies. Notably, the platform is so designed that it can handle multiline insurance products starting from retail and group businesses connected to traditional models as well as SaaS platforms. MetaMorphoSys’s product also includes sales analytics, a product configurator, together with a recommendation engine. PayNXT360 anticipates that the platform which successfully acquired several insurance companies based in Hong Kong, Singapore, Indonesia, and Vietnam, will capture more international clients through its unique platform.

• Another India-based embedded platform for insurance sales, Zopper raised US$75 million in a funding round led by Creaegis in September 2022. This insurance-focused SaaS platform primarily offers end-to-end tech solutions to insurers and also supports several businesses both business-to-business (B2B) and business-to-consumer (B2C) to sell various types of insurance products. It distributes these insurance products through the ‘ecosystem partners' which range from e-commerce portals selling several products to travel sites selling air flight tickets and many more. 

Notably, Zopper helps insurance companies to reach out to these ecosystem partners at zero marginal cost through its proprietary embedded insurance API product. Consequently, it enables these insurance companies to manage risk better, streamline partners as well as manage customer interaction, claim settlement, and ease out transactions.

Zopper’s embedded platform has a unique model which helps the insurance companies to derive profit and thus PayNXT360 expects this innovative platform to see increased adoption amongst the insurance companies over the next three to four years.

• In July 2022, Mulberri, an embedded business insurance platform particularly for professional employer organizations (PEOs) and brokers, announced to raise US$4 million in a seed funding round. Since the process of managing business insurance is very complicated as well as slow, Mulberri introduced this tech-driven platform that optimizes the whole system. 

It brings efficiency to business workflows, fastens up client acquisition, and also provides risk analytics by combining with other systems such as HRIS, Payroll, etc. Its platform specifically helps PEOs and brokers to make intelligent data-driven decisions. Since it provides smart submission intake, data-driven insurance management solutions, and automated quote and binds services, it empowers each one of the critical parties, helping through automation and intelligent data-driven decisions.

To know more and gain a deeper understanding of the global embedded finance market, click here.