4 June 2019

Insurtech weekly: USAA, State Farm, Yulife, Northwestern Mutual, Reg UK, Singapore Life, Ion Pacific

US insurers backing blockchain claims venture

Who’s involved: US insurance companies USAA and State Farm

What’s happening: USAA and State Farm have revealed they are working on a project using real claims data to assess how blockchain technology can improve the efficiency of the subrogation process during auto claims

Significance of development: The subrogation process is regarded as a manual time-consuming process requiring physical checks to be conducted between insurers claim by claim. The two insurers said in 2018 the total amount of dollars demanded and issued through the subrogation process was $9.6bn

Timeline: The two firms started working together in 2018 and said “testing will continue” to see if blockchain is a viable option for subrogation

 

UK life insurance start-up secures $10m funding

Who’s involved:  UK life insurance start-up Yulife; venture capital firms Creandum Funds, MMC Ventures, Notion Capital and Anthemis Exponential Ventures; digital platform RGAX; and equity crowdfunding platform OurCrowd

What’s happening: Yulife has raised $10m in a funding round led by Creandum Funds, with support from others, taking its total funding to $13m since its formation in 2016

Significance of development: According to Yulife, 87% of small to medium-size enterprises have no life insurance in place for employees and its offering provides users with an “end-to-end digital journey” through its wellbeing app

Timeline: With immediate effect

 

Northwestern Mutual pledges $150m for venture capital fund

Who’s involved: American financial services company Northwestern Mutual

What’s happening: Northwestern Mutual has designated $150m to create the Northwestern Mutual Future Ventures Fund II, an extension of its corporate venture capital fund

Significance of development: The firm said the fund’s extension will allow it to advance its investment strategy and increase opportunities with startups with technology that have the “potential to further transform how people experience and achieve financial security”.

Insurtechs supported by the first fund include Ladder and Gabi

Timeline: With immediate effect

 

Data provider Reg UK nets £2.4m funding 

Who’s involved: Data analytics and risk management solutions provider Reg UK; private equity firm Disruptive Capital Finance

What’s happening: Reg UK has secured £2.4m ($3m) in funding from Disruptive Capital Finance

Significance of development: Reg UK’s goal is to improve the insurance industry by streamlining due diligence processes and improving risk management processes through advanced data analytics and tools. The investment will contribute towards the firm’s planned improvements of its platform, systems and team

Timeline: With immediate effect

 

Asian insurtech gains VC backing

Who’s involved:  Technology-focused life insurer Singapore Life; venture capital firm Ion Pacific; insurer Aflac; and asset manager Standard Life Aberdeen

What’s happening: Singapore Life has received a $7.3m investment from Ion Pacific in an undisclosed funding round that included previous investors Aflac and Standard Life Aberdeen. This latest round takes its total external funding raised to $100m

Significance of development: Ion Pacific said the investment will give it greater exposure to the Southeast Asian insurance market

Timeline: With immediate effect