Insurtechs get a new accelerator, with a twist

Insurtechs get a new accelerator, with a twist
BI Intelligence This story was delivered to BI Intelligence " Fintech Briefing " subscribers. To learn more and subscribe, please click here . Insurtech Gateway, a new UK insurtech accelerator, has been licensed by the Financial Conduct Authority (FCA) as an insurance broker, a first for a UK insurtech incubator. This will allow it to independently provide funding and a testing environment for startups. The accelerator is backed by major growth investor Hambro Perks, and was cofounded by Robert Lumley of Lumley Insurance Group, and Stephen Brittain of Hambro Perks. The accelerator has also secured major reinsurer Aspen to provide underwriting capabilities. It is due to launch December 7 . Insurtech Gateway wants to help insurtechs with bureaucratic hurdles to let them focus on innovation. Lumley and Brittain say the pace of innovation in the insurance industry has been held back by three hurdles insurtechs face: regulatory barriers, difficulty finding funding on time, and incumbents' more cautious approach to innovation. To combat these, it will supply applicants with compliance solutions and connect them with a ready-made network of investors, distributors, and infrastructure providers, to spare startups time and money on tracking these resources down. Insurtechs will also be given desk space and ongoing guidance in Hambro Perks' London HQ. The founders say these factors will help insurtechs to market "in weeks," and lower the barrier for entry to allow more "entrepreneurial" people to develop their ideas. Insurtech Gateway already has three startups under its wing: pay-per-mile auto insurer By Miles , freelancer-focused InMyBag, and IoT insurtech Floodflash. The number of players from outside the insurtech space involved in this project makes it highly promising. That Insurtech Gateway has already secured a network of potential incumbent collaborators for its applicants suggests that the legacy insurance industry itself sees potential in the initiative, and more importantly, that it believes it needs help from innovative startups to get its modernization efforts off the ground. Moreover, that the accelerator has been authorized by the FCA to give it more freedom indicates that the UK's most powerful financial regulator also concurs that insurtechs have a lot to offer their incumbent peers, and that they're deserving of watchdogs' support. Overall, Insurtech Gateway's broad support network prelaunch is a promising sign for aspiring insurtechs. BI Intelligence , Business Insider's premium research service, has written a detailed report on the future of life insurance that: Looks at the world's biggest and most innovative life insurance markets, and trends they're setting for the space. Explains the major inefficiencies embedded in the life insurance status quo, and the problems they're causing providers and consumers. Outlines the two main strategies life insurtechs are adopting to drive change in this market, for the benefit of buyers and sellers of life insurance. Discusses the best practices life insurance incumbents and startups should adopt to steer clear of the risks still attached to applying emerging technologies to such a tightly regulated product. Gives an overview of what the rise of life insurtechs has in store for the life insurance space going forward. Interested in getting the full report? Here are two ways to access it: Subscribe to an All-Access pass to BI Intelligence and gain immediate access to this report and over 100 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. >> Learn More Now Purchase download the full report from our research store. >> Purchase Download Now

December 1, 2017 at 02:55PM