Datasheet for Willis Towers Watson models including: Q2 2021 Quarterly InsurTech Briefing, Q2 2021, Quarterly InsurTech Briefing, InsurTech Briefing, Briefing
enable agents to guide their customers to the right coverage at a competitive premium. ... The platform's capabilities support both automated and manual.
The platform's capabilities support both automated and manual underwriting and product pricing, ... iLife Technologies offers a user-friendly life insurance.
Q2 2021 Quarterly InsurTech Briefing July 2021 Contents Foreword Back to the future? 2 Introduction 10 InsurTechs in Spotlight 22 The future of distribution and delivery - bolttech 24 - Semsee 26 - Uncharted 27 - Breathe Life 28 - Bindable 29 - Penni.io 30 - Talage 31 The Art of the Possible Adrian Jones, Hudson Structured Capital Management 32 Incumbent Corner Sean Ringsted on Chubb Studio 38 Thought Leadership 44 WTW's Clyde Bernstein on 3D distribution at 5G speed Transaction Spotlight 48 Technology Spotlight 54 The Data Center 58 - Ethos - Bought By Many - Shift Technology 50 Radar Workbench 51 52 This quarter's data highlights 1 Quarterly InsurTech Briefing Q2 2021 Foreword Back to the future? Foreword Back to the future? Dr. Andrew Johnston Global Head of Willis Re InsurTech, Quarterly Briefing Editor In certain parts of the globe, the efficacy of comprehensive vaccination rollout plans are starting to have the desired effect. Consequently people and businesses alike are starting to make plans to "return to normal." These plans are rightly being met with a plea to take the best of what COVID-19 has forced our society and industry to appreciate and accomplish, and blend it with our desire to reengage with the tactile world. This new normal will be technologically enabled but hopefully retain those things that can only be accomplished by the human touch. Done correctly, we will go back to the future. At a social level, it is clear that people want to go back to traveling again, they want to go on holiday again, they want to take risks, they want to start new businesses and do many of the things that have been very tricky to accomplish since the beginning of 2020. Similarly, the world has also moved on; the gig economy continues to grow, and we continue to muddy the water between home and work, personal and professional/commercial. Irrespective of COVID-19, issues such as climate change and cyber continue to present our world (and our industry specifically) with many unprecedented challenges. A surging demand for electric vehicles, automated processes, and increasing expectation for instantaneous service and results are also fueling the fires for change. From a product, service, distribution and underlying risk perspective, we -- as a society and as an industry -- are moving at an unprecedented speed to match expectations with reality, largely powered by harnessed appropriate technology and digital strategy. As our lives are changing at a micro level, a collective society at a macro level demands an insurance community to support its changing behavior. With so much retail choice, those (re)insurance providers that fail to respond to the changes that the back-tothe-future model are creating will fall away over time. We have a fantastic opportunity ahead to rid ourselves of obsolete legacy and redefine what it means to serve and be served in the contemporary shared risk pool that is technologically enabled (re)insurance. Building on the astronomically high level of InsurTech investment we observed in the first quarter of this year, we will once again be announcing another record-breaking quarter in Q2. This means one thing is still abundantly clear: There is still more investment capital looking for a home than there is grey matter itself. This has led to some grossly overvalued businesses that our industry is looking to in order to help drive some of the technological evolution and social change that we have just described. In particular, as many risk-originating InsurTechs are maturing and looking to go public, we are seeing the initial public offering (IPO) trajectory for some businesses happening earlier and earlier in the funding cycle. An optimist could look to this as a sign of great businesses coming through the investment journey that do not need to cede unnecessary percentage points of equity or go through another round of pilots/proof of concepts. A cynic may well see this as a rushed move to make the most of the bullish investment landscape, which is likely to turn tide before long. Globally, markets are shifting; the investment landscape is moving to a more conservative stance, and "tech" firms that are financial services-focused are increasingly playing in very volatile markets. Furthermore, in a very real sense, the (re)insurance markets are hardening. The future of the global economy remains uncertain, as the pandemic, climate change, increased catastrophic events and other systemic events that continue against the backdrop of these volatile markets. These events have begun to force the (re) insurance market away from over a decade of "soft"(er) conditions to a situation that will be a lot less forgiving for new risk-originating entrants (technologically enabled or not). The speeding up of going public (or going too early) might ultimately seal the fate at an industry-wide level for the type of overvaluation that we have seen in the past couple of years, as even the most optimistic short-term investors may have to reevaluate the true value of many InsurTechs over the long-term. It would be remiss, however, not to acknowledge that some InsurTechs that have gone public, or plan to go public, are performing very well; for example, Doma (formerly States Title) announced in March it was going public through a special purpose acquisition company with Capitol Investment Corp. At that time, Doma reported financial results and key operating data for the 4 willistowerswatson.com quarter ended March 31, 2021, boasting total revenues of US$128 million, up 80% from Q1 2020 and a gross profit of $26 million, up 98% from Q1 2020. For many InsurTechs, the past 18 months have been a struggle. COVID-19, among other things, has presented our industry and most mature markets with some real uncertainty, which is leading to varying degrees of volatility. For those InsurTechs that have already gone public, it is clear that (perceived) volatility has had a broad effect on stock prices; we observe this in a recent trend for most InsurTech stock (and for that matter, most tech stock) to converge and move together, almost regardless of how the businesses themselves are performing. This would suggest that at present the market does not really know how to treat InsurTech stock (and this trend could last a while). Currently, most public InsurTech stock is experiencing a downward trend, as is so often the case with relatively exciting new investment opportunities during periods of volatility and uncertainty. This is not to suggest, however, that there will not be a positive future for many InsurTechs that can survive this uncertainty, and to this point, some individual businesses are demonstrating some impressive resilience already. Over time, we predict that as the label of InsurTech becomes increasingly less important, and the market becomes more comfortable with certain individual businesses, there will most likely be a natural push to drive individual InsurTech business stock prices to find their proper place on their own (and reflect the businesses they represent). At what point the typical share value of most InsurTechs will reach stability remains to be seen. In the short term, however, these tech-oriented stocks are feeling the brunt of a market that is changing. One thing is clear: For those InsurTechs that are able to weather the storm and bring a truly differentiated business to our industry, these changes could create untold longterm opportunities. While the pathways to success are in reality very nuanced, InsurTechs should be thinking about our industry's success criteria in a clear manner (as it relates to their own offerings). Perhaps drawing a parallel to that of a fire triangle (requiring oxygen, fuel and heat made true with combustion), our industry requires risk, capital and operational efficiency to drive itself, within the context of a shared risk pool, a highly regulated industry and capped market size. If an InsurTech can truly bring a differentiated risk (offering), open up differentiated streams of liquidity or offer our industry a truly differentiated series of processes that can motor our industry, then it has a fantastic chance of success. In reality, we are seeing many businesses rehashing tried and tested products and processes that can, at best, add marginal value around the edges (but do not often justify the cost of disruption of their usage). "For many InsurTechs the last 18 months have been a struggle. COVID-19 among other things, has presented our industry and most mature markets with some real uncertainty which is leading to varying degrees of volatility." 5 Quarterly InsurTech Briefing Q2 2021 Relative/comparable share price percentage change (pegged to zero on January 5th, 2021) 1/8/2 021 1/20/2021 1/29/2021 2/9/2 021 2/19/2021 3/2/2 021 3/11/2021 3/22/2021 3/31/2021 4/12/2021 4/21/2021 4/30/2021 5/11/2021 5/20/2021 6/1/2 021 6/10/2021 6/21/2021 6/30/2021 Dea l s Foreword continued Figure 1 : Relative/comparable InsurTech stock price changes over time pegged to zero beginning January 2021, including S&P 500 to benchmark 0.40 Lemonade 0.20 0.00 (0.20) S&P 500 Oscar Go Health Duck Creek Technologies (0.40) (0.60) MetroMile Root Root Lemonade MetroMile Oscar Go Health Duck Creek Technologies S&P 500 Data sourced from S&P Global Market Intelligence The graph above shows the stock prices over time of some of the global InsurTechs that have gone public. In order to create a graph of stock price change relativity, we pegged S&P 500 and six InsurTechs at zero for the beginning of the year (Metromile and Oscar are introduced at the point of going public with the same peg) to illustrate relative performance over the same time period. While this is extremely crude, what we are attempting to present is the convergence that we previously touched on. Not only have these six InsurTechs' prices experienced a general downward trend during H1 , their movement is highly correlated with one another, which would suggest that the market might view them as one animal rather than six individual businesses. We will continue to track performances to see if our hypotheses on this are correct. As mentioned, changing market conditions do present some InsurTechs with an opportunity to take advantage of shifting plates as competition becomes fiercer and restraints on capital require increased efficiency, but frankly most InsurTechs are just not up to standard to survive a possible decade of stringent and volatile market conditions. This does not mean that the investment into InsurTechs pre-M&A/going public will dry up in the short term, but their ability to deliver on their commercial promises is going to be extremely difficult in the long term. Thankfully we are seeing a drying up of InsurTechs trying to sell their technology as the product they ultimately wish to offer. Technology is simply a mechanism to attain success against a series of commercial metrics. The mechanism being "blockchain-based" or "powered by AI" is meaningless if it has no net positive impact on risk, capital or operational efficiency. Before moving on to this quarter's data, we also want to check in on another very real part of the overall InsurTech story that gets a lot less attention than big fundraises and valuations: individual InsurTech business closing. Just over a year ago, we estimated that some 184 InsurTech businesses had ceased trading. We yet again are trying to calculate what the updated rate of global InsurTech deaths has been/is. Running an analysis on InsurTech companies that might be "closed," the following metrics, although crude, were dialed; those businesses that have raised less than US$10 million overall, have not exited (IPO and/or M&A), have not raised any capital in over 24 months and are outside the top 25 percentile in CBInsights' platform Mosaic Score (a predictor of individual company health). The results of this show that approximately 456 InsurTech businesses fit these criteria. As noted, this is an extremely crude exercise but illuminating, nonetheless. While the actual number of InsurTechs that have ceased trading could be drastically different, our sense is that it is probably at least this many businesses if we consider 2010 our starting point. Figure 2: Annual InsurTech funding trends, including transaction volume and dollar amount, 2012 H1 2021 US$ million 400 350 300 250 200 150 100 50 46 348 0 2012 66 276 2013 94 868 2014 132 2721 2015 176 1742 2016 218 2274 2017 Investment amount Number of deals 377 8,000 314 262 7,000 308 6,000 5,000 4,000 3,000 2,000 4167 2018 6348 2019 7108 2020 7376 H1 2021 1,000 0 The graph above shows annual InsurTech funding ($ million) against the number of InsurTech deals. The number of deals in H1 2021 has already surpassed the entirety of 2018 and the years that preceded 2018. Figure 3 : Annual InsurTech funding totals, 2012 H1 2021 8,000 H1 2021 funding total 7,000 6,000 6,348 7,108 7,376 Amount of funding (US$ million) 5,000 4,000 3,000 2,000 1,000 0 348 2012 276 2013 868 2014 2,721 2015 1,742 2016 2,274 2017 4,167 2018 2019 2020 H1 2021 The graph above shows the annual InsurTech funding totals ($ million). H1 2021 has already surpassed the total funding realized in the entirety of 2020. 6 willistowerswatson.com 7 Quarterly InsurTech Briefing Q2 2021 Foreword continued Q2 Data Highlights Global InsurTech funding reaches an emphatic record; the first half of 2021 already exceeds the full year of 2020 funding. In Q2 2021, we witnessed the largest quarter-on-quarter funding increase since Q3 2018. Specifically, global InsurTech funding ballooned to over $4.8 billion, representing an 89% increase from Q1 2021 and a 210% increase compared with the same period last year. Mega-rounds provide rocket fuel for Q2 In the first half of 2021, InsurTechs have raised $7.4 billion surpassing the $7.1 billion raised for all of 2020 by more than $300 million. While overall deal activity grew to 162 deals, up 11% compared with last quarter, a major driver of funding was the growth in mega-rounds ($100 million-plus funding), up to 15 deals. Collectively, the 15 funding rounds represented nearly $3.3 billion or 67% of total funding, as these predominantly late-stage players seek expansion. Companies ranging from Germany-based digital insurer wefox, which raised $650 million, one of the largest Series C on record, to U.K.-based pet insurance managing general agent (MGA) Bought By Many, which raised a hefty $350 million Series D. Other major funding rounds went to companies like Collective Health ($280 million Series F), Extend ($260 million Series C), Alan ($223 million Series D), Shift Technology ($220 million Series D) and others. Early-and mid-stage InsurTechs deals grew While other stages contracted modestly, early-and mid-stage pipeline remains healthy. Deal activity was driven by mid-stage (Series B and C) deal share, which increased by 6% to 23%. The pipeline for early-stage InsurTech continues to remain healthy with early-stage deals growing by over 9% from the prior quarter and rebounding by 200% from the peak of the pandemic in Q2 2020. As a percentage of overall deals, early-stage activity fell slightly to 57% of deals versus 58% in Q1 2021. InsurTech geographic diversity continues to grow As opportunities to leverage technology in insurance transcend borders, InsurTech value propositions are resonating with more countries as entrepreneurs chase opportunities to innovate insurance in new regions. Geographic diversity among global InsurTechs continues to grow, with InsurTechs from 35 distinct countries securing investments, compared with 26 countries in Q1 2021. For the first time, we observed activity in InsurTechs based in such countries as Botswana, Mali, Romania, Saudi Arabia and Turkey, and saw recent activity from less active regions, such as Vietnam, Philippines, Romania and Greece. InsurTechs focused on distribution accounted for nearly 55% of all deal activity A 7% increase from the prior quarter, InsurTechs driving efficiency in insurance distribution continues to be a major priority for investors. This quarter, 55% of deals involved start-ups focused on distribution (i.e., digital brokers, MGAs and lead generation). In addition, 10 of the 15 InsurTechs that raised mega-rounds this quarter focused on improving insurance distribution, with varying approaches. The majority of companies focus on tech-enabled distribution in an attempt to minimize the dependence on agent channels, including embedded product warranty platform Extend, price comparison site The Zebra and commission-less life insurer Ethos Life. wefox, however, has taken a different approach. wefox, the Germanybased digital insurer, relies heavily on local agents for policy distribution but has built efficiency in other ways by automating nearly 80% of administrative processes, according to the company. Though approaches may vary, technology will continue to play an essential role in driving better, cheaper and more transparent insurance experiences. The future of distribution and delivery The future of product and service The future of distribution and delivery The future of process and operations The future of risk This quarterly briefing's contents This Quarterly InsurTech Briefing, the second in the 2021 series, will focus on InsurTechs, InsurTech initiatives and thought leaders focused on the future of distribution and delivery -- a very pertinent topic given the total amount of investment activity that occurred this quarter focused on InsurTechs that specialize in this space. In this particular briefing, we will be featuring the following InsurTechs: 1. bolttech Hong-Kong-based bolttech is a global digital protection and insurance business that connects insurers, distribution partners and customers to make it easier and more efficient to buy and sell protection and insurance. 2. Semsee U.S.-based Semsee provides an easy-to-use, cloud-based platform for quoting small commercial insurance. 3. Uncharted Singapore-based Uncharted provides an insurance platform-asa-service (iPaaS) that can embed digital distribution and servicing solutions for the global insurance marketplace. 4. Breathe Life North American-based Breathe Life is a unified digital distribution platform for life insurance carriers. 5. Bindable U.S.-based Bindable provides a platform that brings together its agent software, a digital marketplace and a full suite of support services to offer flexible, market-ready solutions that connect insurance providers, trusted brands and consumers. In this quarter's The Art of the Possible, we speak to Adrian Jones, managing director at HSCM Ventures. Adrian discusses the InsurTech venture capital market, how HSCM Ventures supports entrepreneurs, and the HSCM Public InsurTech Index (HPIX). The HPIX is a market cap weighted index of 18 U.S. insurance-sector stocks with novel business models differentiated by technology. (The HPIX values will not necessarily correspond to Figure 1 shown on page 6.) In this quarter's Incumbent Corner, we speak to Sean Ringsted, chief digital officer at Chubb, to discuss Chubb Studio, Chubb's engagement with technology and innovation, and the company's long-term technological innovation plan. This quarter's Thought Leadership comes from Willis Towers Watson's Clyde Bernstein, head of broking, Great Britain and global leader of data and technology broking strategy. Clyde shares his thoughts on why our current insurance distribution methods have led insurers and consumers to a crossroads and the needed response from insurers to realize continued relevance. This quarter's Transaction Spotlight highlights Ethos on its $200 million Series D round, Bought By Many on its $350 million Series D and Shift Technology on its $220 million Series D. Our Technology Spotlight this quarter features Willis Towers Watson's Radar Workbench. Radar Workbench is the latest product in the Radar suite, building on existing foundations and capabilities in delivering insurance-specific technologies to commercial lines insurers. As ever, we thank you for your continued support. 6. Penni.io Denmark-based Penni.io enables insurance products to be embedded at any digital customer touchpoint. 7. Talage U.S.-based Talage is a provider of digital distribution software solutions for commercial insurance. 8 willistowerswatson.com 9 Quarterly InsurTech Briefing Q2 2021 Introduction The future of distribution and delivery Introduction The future of distribution and delivery This edition of the Quarterly InsurTech Briefing focuses on the future of distribution and delivery. Specifically, we will be assessing the various ways in which technology and InsurTech are attempting to foster and drive innovations that ultimately lead to a better outcome for consumers, risk originators, intermediaries, vendors of technology and capacity providers. Of the four topics that this annual series of briefings will cover, the theme of distribution and delivery is perhaps the most controversial when viewed through the context of technology and, more specifically, many contemporary InsurTech businesses. At the height of InsurTech hubris (circa 2016/2017), it was not uncommon for InsurTechs to seek to "usurp" (re)insurance intermediaries and completely redefine insurance distribution (products, services, relationships, people, capital and the like) as we knew it. It is safe to say that, at a fundamental level, this crusade of theirs has failed when viewed across the board. It did, however, raise some very interesting points around consumer expectations, costs of service, the role of intermediaries and the life cycle of (re)insurance products. When we speak of distribution and delivery, we are not just speaking about products, of course. Our entire industry, and every related part of it, is in some shape or form driven by distribution. Our industry is a pool of shared written risks orbiting around capital in thousands of regulated entities using a variety of in-house and external services and therefore requires objective distribution at its fundamental core. In addition to products and services, many other things are being distributed, for example, people, operations, business as bespoke programs, data, parochial expertise and claims, to name but a few. The diagram below represents an inexhaustive overview of the various parts of our industry being distributed. The parts in green represent fixed parts of our industry; the parts in purple represent the more fluid currencies in our industry. If we begin at the start of the value chain, let's evaluate the ways in which our industry has evolved to function and review those technologies, initiatives and firms that are looking to add long-term value. t bonds ker capPitarol edxucchtange Primary insurer An inexhaustive overview of the various parts of our industry being distributed Fluid parts: data, capital, intepretations of risk and information Capital Specialized broker services, including reinsurance/ retrocessional broking, 1 modeling, actuarial work Highly specialized broker 1 ProIgnrfaramstbruuscitnuerses 7 y 2 specWiahlitoylebsroale Ca Reinsurer Broker/agency intermediar Placement of program business into digitally enabled infrastructure for rent (e.g., fronts, policy 2 administration systems) Personalized targeting of products and services for a specific 3 policyholder Targeted direct-to-consumer distribution 4 ILS fund Private investment/i 5 ntermediary 3 4 Policyholder aggrePgraictoerc/pormopdaurcist oexnc/hange 8 Modeling company 6 S Secondary reins 12 willistowerswatson.com vendor urance oftware market Tech-enabled traditional intermediaries Distribution of (re)insurance products and services is handled in a number of ways. Historically, the most common way is through the use of (re)insurance intermediaries. Whether it be an agent (representing one or multiple insurers) or a broker (representing a policyholder or a collective of policyholders) these traditional intermediaries serve as a critical link between risk and capital -- helping to ensure the correct coverage is provided, at the right price, for the right requirement(s). Brokers and agents not only offer advice to discuss appropriate coverage, but they are also expert at negotiations. Consequently, the relationship itself is a very human one (it is extremely difficult to negotiate with technology), and the most appropriate technology in this space supports brokers and agents as humans. Price discovery, instantaneous price comparisons, digital procurements, remote binding and issuing of contracts are all areas where we have seen technology play a huge part in evolving the role of human intermediaries. InsurTech/InsurTech-focused companies in this space include: Tech-enabled risk consultants Over time, many agents and brokers have become not only transactors of ceded risk/risk binding but also advisors and consultants of risk. This includes modeling different loss scenarios, providing actuarial analysis and helping to paint for their clients the fullest picture of the risk map ahead of them. Understandably, there are certain risk classes that require a greater degree of human touch than others. In particular, in complex commercial risk classes, a significant degree of human risk judgment and expertise is required that is very difficult to derive from technology alone (although automated algorithms can do a fantastic job of helping intermediaries spot patterns and anomalies at speed). InsurTech/InsurTech-focused companies in this space include: Risk Value chain components, players, people, markets (i.e., static pieces) Risk calculation for alternative 5 capital, including modeling Direct to consumer from software vendor to support the insurance 6 life cycle (e.g., cloud support services) Extraction of primary data from policyholders' behavior to inform and optimize distribution 7 decisions in the capital markets, insurers, reinsurers, placement intermediaries and vendors Affinity/captive structures requesting capital support for 8 alternative products and services directly from capital markets Tech-enabled aggregators and price comparison sites It is also fair to say that there has also been some true technological innovation in the personal lines space, as we have observed a number of aggregators and price comparison sites bring relatively straightforward products to consumers where this business might have been procured by a human being at one point or another. This has not replaced intermediaries; instead, it has freed them up to make more of their time. At the heart of this technology innovation is a clear value-adding layer: First and foremost, the InsurTechs that have become excellent intermediaries themselves (of personal lines/white good products and off-the-shelf small business products) have all successfully made their technology customercentric. Around that, customer centricity that either created and/ or adapted products to fit InsurTechs and technology-enabled businesses have been able to support and power the experience of seamless digital distribution. This model can be applied either direct to consumer or through another series of intermediaries (as long as the pricing model remains on the right side of the technology versus non-technology equation). As the graphic illustrates on the following pages, this customer-first approach really is the true answer to support and drive modular, replaceable, stackable digital distribution in our industry. 13 Quarterly InsurTech Briefing Q2 2021 Introduction continued InsurTech/InsurTech-focused companies in this space include: association took the initiative to put one together on behalf of a group that could not otherwise easily get an insurance product (at an affordable cost). We have seen, however, in recent years the use of technology put to work to create such groups without a traditional intermediary. Bought By Many, for example, has done a fantastic job of using technology to create a platform and support products for affinity groups that are otherwise disparate members of a broad demographic. Tech-enabled independent intermediaries and alternative structures In addition to the traditional (re)insurance intermediaries (including those InsurTechs that promote themselves as such), there is also a huge number of nontraditional intermediaries that play an enormously significant role in getting products and services in front of potential buyers. Of note are bancassurance programs, affinity programs, captives, peer-to-peer groups and targeted campaign/marketeers. These structured groups tend to respond to other decisions that an individual tends to make where insurance can subsequently be upsold/offered (for example, as part of the mortgage deed insurance ecosystem procurement, which we described in our Q1 2021 briefing). Where these structures are particularly successful is where targeted sales timing can be perfected (for example, responding to a life event), but perhaps even more important, where sales are being driven by extreme empathy to the needs of a marginalized group. Captive groups, for example, are usually created through necessity and not through desire, but this historically was only achieved when a broker or A number of other peer-to-peer InsurTechs seek to offer insurance to an affinity group that will themselves, as the policyholders, own the company. Any profits earned by this group can be retained by the group, or rebated to the group as dividends or a reduced pricing of their premiums. As such, the group is supposed to attract like-minded people and those that can self-select the group, making it as efficient, fair, cost reducing and socially conscious as possible. These InsurTechs look to the group and to peer financing as a vehicle to provide the risk capacity required. Tech-enabled or not, this is in essence the fundamental premise of a mutual -- somewhat ironically the oldest insurance structure of all. InsurTech/InsurTech-focused companies in this space include: The affinity group Policyholder Policyholder Excess pool Tech-enabled vehicle Running costs Pooled premium Fees 14 willistowerswatson.com Reinsurance risk capital End consumer End consumer End consumer End consumer Tech vendor Intermediary Intermediary Product/Service originator Intermediary B2B2B2C Product/Service originator Product/Service originator Product/Service originator The evolution of distribution: An insight into the various distribution mechanisms 1 Baseline database to allow for future automation 2 Technological layer Distribution function for upstream communication to product originator, capital provider and basis for consumer-facing function CUSTOMERCENTRIC 3 Customer-centricity layer 4 Product/Service Distribution function for directto-consumer model and other tailoring processes to deliver capabilities that are customer appropriate PRODUCT 5 Channel capability 6 Warehousing capability Distribution function for businessto-business or affinity partnership model allowing for third parties to sell through others and provide additonal service capabilities DISTRIBUTION Capital B2B2B2C Business to business to consumer (B2B2C) Direct to consumer Tech-enabled marketplaces/exchanges Over the past few years, we have also observed a rise in technologically enabled market exchanges. These serve as standalone marketplaces for either product discovery or referrals from other sources where the desired product is otherwise absent. In most cases these exchanges are digital product warehouses for incumbent insurance company product application programming interfaces that bring a buyer to the source of product origination; however, in a handful of cases products can be quoted, bound and issued on these exchange platforms. Perhaps the best example of InsurTech exchange architecture is that built by bolttech. "Our industry is a pool of shared written risks orbiting around capital in thousands of regulated entities using a variety of in-house and external services and therefore requires objective distribution at its fundamental core." 15 Quarterly InsurTech Briefing Q2 2021 Introduction continued The graph below depicts the essence of an exchange, showing how an exchange can function as the interface between the back office of insurers, product providers and customers. Through the exchange, customers have access to a range of insurance products, which can be offered by a collection of insurers that sit behind the exchange interface and user experience (UX) layer. By leveraging an insurance exchange, insurers can extend their product reach or retain existing customers by expanding their product offering through partnerships with other insurers. In this way, both the exchange insurer that which brings in the customer-- and the end insurer -- that which underwrites the risk -- benefit; the exchange insurer retains the customer, while the end insurer expands its portfolio. Policyholder Broker/Agent Third-party enterprise/ Intermediary Direct Lead generator Referral GLIEANBEIRLIATLY A D M I N I ST R ATO R PET API - TECH LAYER Bound policy Insurer 1 UX LAYER FOR CONSUMER MARKET EXCHANGE CYBER T H I R D - PA R T Y / TRAVEL CARRIER MGA FACE Bound policy Insurer 2 QUOT ING QUESTIONS / PRODUCT INTER / RS COMP SYSTEM S Bound policy Insurer 3 / INTEGR AUTO ATION LAYER WORKE / PROPERTY QUOTE, BIND, ISSUE / POLICY ADMIN Insurer 5 Bound policy Bound policy Insurer 4 As is now hopefully clear, technology that is either aligned with the existing ecosystem or stackable around the existing ecosystem is where InsurTechs that have been truly successful in distribution have achieved success. As we previously mentioned, 16 willistowerswatson.com distribution is not simply products and concierge services (of said products), however. This is naturally where the end consumer sees distribution at its fullest, but behind the curtain, digital distribution is playing an arguably more important role. Tech-enabled operating infrastructure for program business There is now a plethora of technology firms and InsurTechs that provide the technological infrastructure to individual underwriters, individual books of program business, MGA business and runoff business. These models generally consist of a dedicated front (that has multi-jurisdictional licenses), a platform to onboard prewritten/ written business, policy administration capabilities and a host third-party administrator (TPA). In a small number of cases, these platforms might also have access to a panel of capacity providers. InsurTech/InsurTech-focused companies in this space include: Insurance buying market Regulated fronting carousel Program business A B C D TeTcehcnhonolologgyy--eennaabbled iinnffrraasstrturucctutruereplpatlfaotrfmorm Reinsurance panel Tech-enabled independent claim functionality Another often overlooked function of distribution is a if not the core function of the (re)insurance value chain: claim functionality. While many large/highly esoteric incumbent insurers have inhouse claim handling functions of their own, a huge percentage of the (re)insurance industry relies on TPAs. These businesses specialize in receiving outsourced claim enquiries. Claims is arguably the area that has benefitted the most from technology. From triage to settling, technology has truly evolved (if not revolutionized) the claims experience for most policyholders. In particular the automation of policyholder information retrieval has allowed TPAs to offer an altogether more human experience from the person on the other end of the phone/chat. At scale, we are also observing the use of satellites to photograph entire regions' worth of damages/losses to help aid the function of TPAs. InsurTech/InsurTech-focused companies in this space include: Detection/ Alert First Notice of Loss Engagement/ Investigation Policy review Evaluation/ Adjustment Settlement 17 Quarterly InsurTech Briefing Q2 2021 Introduction continued Tech-enabled underinsurance-focused players Finally, and arguably of most immediate impact to our industry, there are a handful of InsurTechs that are looking to use their technology to help distribute (re)insurance products, services and functionality to the underinsured global market. While not unsurprising, it is still quite astounding how few technology firms look to the underinsured market(s) to really stake their claim in our industry. Not only is it a much more fertile playing field, with far fewer competitors, it is also an opportunity to genuinely achieve what so many InsurTechs set out to achieve: grow the market while adding differentiated value. Globally, it is estimated that 40% of the population does not have access to the most basic of insurance services -- that is some 3.1 billion people worldwide. Of those 3.1 billion, it is estimated that 60% have access to a mobile phone -- and therein lies the basis of a digital distribution angle. The platform to receive what is required is already in the hands of over half of those people who globally do not have access to a legacy (re)insurance environment. Through the phone, policyholders can be quoted, bind a quote, be issued a policy and file a claim should an event occur. Digital wallets on phones allow for easy transaction of capital and can create a formative basis for a growing insurance culture. Leveraging mobile technology to expand insurance's reach Extol the virtues of insurance Reduced cost of distribution Constant communication Updateable/Flexible products Local languages Reduced travel costs Remote policy branding Data-supporting parametrics Ancillary services Instantaneous payments Technology can circumvent the requirement to reproduce legacy if it is now obsolete. If we take the Kenyan banking sector as an example, mobile phone technology allowed Kenya to leapfrog decades of antiquated processes to allow people to bank on their phones and now boasts one of the most sophisticated remote banking systems in the world. If we can assume that much of the current issue is dictated by cost, infrastructural gaps, processing expenses, product relevance (and updating), instant communication, linguistic relevance, claims filing triggers, literacy rates and so on, mobile technology can solve for all of these problems in most phones' intrinsic capabilities. The potential market opportunity here is enormous and would really put technology at the core of the focus to provide a truly differentiated edge to risk, capital and operations. 18 willistowerswatson.com Additionally, technology can be used to review existing coverages and costs and see where policyholders (and future policyholders) are underinsured, or at least very vulnerable. It is easy to take for granted that ready coverage for our own personal requirements is a universal experience for everyone, but the truth of the matter is that this simply isn't the case for a significant number of people. Coverage gap comparison technology is playing a very positive role in helping people understand where their exposures lie. InsurTech/InsurTech-focused companies in this space include: The role of technology in the realm of distribution is not uniform the world over. An issue for many InsurTechs is that they are forced to contend with decades' worth of incumbent experience in the more "mature" insurance markets of North America and Europe. The legacy market infrastructure in these regions has resulted in established protocols that newcomers to the industry invariably have to master or circumnavigate in order to insert themselves into the value chain. This hurdle proves too difficult for the vast majority. In the Asian, South American and African markets, however, our observation is that an ecosystem less encumbered by legacy processes can provide InsurTechs with relatively greater opportunity to compete. In particular, InsurTechs focusing on distributing life and health and microinsurance products located in Asia, Africa and South America have had a lot more success than those InsurTechs in older/more fiercely regulated markets. The distinct lack of legacy incumbents in many of these markets, coupled with increasing demand for more responsive and tailored insurance products, is creating strong opportunity for new entrants. Arguably the largest single InsurTech in the market today is digital insurer Zhong An, which was launched and financed by Ping An, Tencent and Alibaba in 2013. Zhong An is one of a handful of companies nationwide in China to receive a license from the CIRC to sell insurance products digitally online. Zhong An boasts more than 240 niche products, all of which are distributed digitally, mostly through the online platforms of the company's many ecosystem partners. Zhong An has raised over $2.4 billion of capital to date. Another notable entrant is Singapore Life, a digital insurer specializing in life and health products (specifically for high net worth individuals). Singapore Life is the first Singaporean insurance company to be domestically licensed since 1970 and has now merged with Aviva Singapore. The case for InsurTech in distribution and delivery is very strong The table below is an example of all types of distribution generals for the (re)insurance industry. We have observed that around almost every single permutation, a small number of InsurTechs have been able to add value to the existing landscape and, in a very few rare cases, actually carve out a space of their own to serve a truly fundamental need to the underinsured. Distribution routes for the (re)insurance industry Insurance and reinsurance products, services, capital and human resources Provider Insurer/ Reinsurer Distinction Direct writer Agency writer Non-industry intermediary Type of distribution Direct to consumer (e.g., direct procurement, renewal, consumer-led interaction) generally online or direct marketing Independent agencies Brokers General agents Managing general agents Banks (bancassurance) Enterprise-pool affinity Independent call center Product exchange/marketplace Platform referral link Affinity (in some cases own product/service) Captive (in some cases own product/service) Peer to peer (in some cases own product/service) Infrastructural, technical and gateway support to existing part of the value chain Software-as-a-service provider for program business (in certain case also able to offer paper/ fronting agreements and capacity), including quote/bind/issue, policy administration and claims handling services Cloud computing/storage capabilities Mobile first solutions (e.g., application technology to transform products, remote adjusting capabilities) Market exchange software for referral/ redirected business through sophisticated procurement Agency support tools for remote quoting and binding API-architecture software to create navigation pathways between warehoused products and services direct to consumer/market 19 Quarterly InsurTech Briefing Q2 2021 Introduction continued Some noteworthy InsurTech partnerships, deals and funding from Q2 2021: 1. bolttech has raised the largest InsurTech Series A on record bolttech, a leading insurance exchange, has completed an oversubscribed $180 million Series A funding round led by Activant Capital Group and joined by investors, including Tony Fadell, Alpha Leonis Partners, Dowling Capital Partners, B. Riley Venture Capital and Tarsadia Investments. The investment round values bolttech at more than US$1 billion, giving the InsurTech unicorn status only one year after its launch in 2020. 2. Buckle has completed the purchase of Atlas Financial Holdings Buckle provides insurance and credit products to those who earn less than the average American wage and are subsequently penalized for having poor or no credit. The company services the emerging middle class and providers to the gig economy. 3. Bought By Many has raised $350 million, now valued at over $2 billion London-based pet insurance provider Bought By Many has raised $350 million in a Series D round through its holding company Many Group. The round was led by EQT Growth and had participation from Octopus Ventures and Munich Re Ventures. This raise takes Bought By Many's valuation to over $2 billion. 4. Cambridge Mobile Telematics acquires True Motion U.S.-based Cambridge Mobile Telematics, a leader in mobile telematics and analytics, has acquired TrueMotion, the second largest mobile telematics provider. This acquisition will enable Cambridge Mobile Telematics to provide telematics services to 21 out of the 25 largest auto insurers in the U.S., and across more than 20 countries, including Canada, the U.K., Germany, South Africa, Japan and Australia. 5. wefox has raised $650 million, now valued at $3 billion German InsurTech wefox, a digital insurer focused on personal insurance products, has raised a $650 million Series C funding round led by Target Global. wefox intends to invest the proceeds in expanding into the U.S. and Asia within the next two years while strengthening its presence in its existing markets in Germany, Austria, Switzerland and Poland. 6. Boost Insurance has raised a $20 million Series B Boost Insurance, a B2B digital insurance platform, has raised a $20 million Series B to fuel growth of its platform, new product development and partner marketing. The round was led by RRE Ventures and had participation from Greycroft, Conversion Capital, Coatue Management, Gaingels, Hack VC and FinVC. 7. Qover has raised $25 million in a Series B round Qover, a B2B2C company that provides a suite of insurance products to companies, has raised $25 million with Prime Ventures as lead investor, backed by Cathay Innovation, Alven Capital and Anthemis. This brings the company's total funding to $40 million. 8. Doma is going public via SPAC in a $3 billion deal Doma, formerly known as States Title, announced it will go public through a merger with SPAC Capitol Investment Corp. V in a deal valued at $3 billion, including debt. The transaction is expected to provide up to $645 million in cash proceeds, including a fully committed PIPE of $300 million and up to $345 million of cash held in the trust account of Capitol Investment Corp. V. 9. Tractable has raised $60 million in Series D and has reached unicorn status U.S.-based Tractable's Series D round had participation from Insight Partners and Georgian Partners. Tractable uses computer vision technology to let users take and submit photos of vehicle damage and uses AI to assess appraisals. The round means that Tractable is valued at $1 billion. 10. hyperexponential has raised a $18 million funding round hyperexponential (hx), a London-based InsurTech that has a mathematical modeling software for the commercial insurance sector, has closed an $18 million funding round from Highland Europe. 11. EIS has raised $100 million private equity from TPG EIS is a core and digital platform provider for insurers. The new funding will be used to continue to accelerate product development across the spectrum of risk, health and wealth, and support geographic expansion. A snapshot of some global InsurTechs operating in the future of delivery and distribution space: 20 willistowerswatson.com 21 Quarterly InsurTech Briefing Q2 2021 InsurTechs in Spotlight Case studies InsurTechs in Spotlight: bolttech bolttech is a high-growth, global InsurTech that serves customers in 26 markets across North America, Asia and Europe. The company's mission is to build the world's leading, technology-enabled ecosystem to connecting insurers, distribution partners and customers to make it easier and more efficient to buy and sell insurance. At the center of the ecosystem is bolttech's insurance exchange -- the world's largest platform of its kind transacting US$5 billion in premiums on the platform. bolttech overview Working with a growing portfolio of market-leading brands from around the world, bolttech brings together powerful partnerships, its next-generation technology and well-established capabilities in protection and insurance to form an efficient and easily accessible ecosystem for partners and their customers. Conceived as a digital native, bolttech's offering to partners is underpinned by scalable, cloud-based technology that can quickly and seamlessly bolt into the back end of the partner's IT landscapes. The modular, microservices-based functionality allows any kind of business to add white-labeled, contextual insurance to its existing journeys to provide its customers with more choice. Tap into new markets. Insurance underwriters can scale up their distribution instantly. By integrating their products into the world's largest insurance exchange, insurers can tap into a range of new distribution channels on the platform, including agents, brokers, carriers, and even nontraditional distribution partners such as retailers and telephone companies. Offer more customer choice. These same insurers can enhance their business models by complementing their offerings with products from other insurers. They can satisfy customer needs with more choice than ever before, maximizing customer lifetime value in their network while maintaining their desired risk profile on their balance sheet. Just add insurance. Across all kinds of online purchase journeys, non-insurers can diversify into new revenue streams, vertically integrating the right kind of insurance at just the right time to deepen customer relationships. bolttech enables fast, easy and on-demand insurance using machine learning and big data to facilitate best-in-class customer experience. The bolttech story so far... Launched in 2020 26 markets in 3 continents 700+ distribution partners globally US$5 billion premiums on platform 150+ insurance product providers 1 © 2021 bolttech | 24 willistowerswatson.com bolttech's speed In 2020, bolttech integrated its ecosystem of insurance products into Rabbit LINE Pay, LINE's e-wallet. This formed an exclusive co-branded partner relationship with Thailand's leading super app, which is currently used by over 47 million people. The project took just three months to complete, allowing bolttech to offer 10 insurance category products from over 20 insurance carriers via application programming interface integration. This dynamic collaboration allows a superior customer experience in the insurance category -- with an average 90-second customer onboarding and coverage confirmed in the app via instant e-policy. bolttech's innovation One of the challenges of offering digital device protection is the ability to diagnose the condition of a customer's device. To overcome this challenge, the team developed Click-to-Protect, a unique and award-winning remote diagnostics tool. It uses custom-developed artificial intelligence and computer vision to diagnose the condition of any mobile device before confirming eligibility for coverage. A global innovation team is now building in enhanced capabilities such as fraud detection via optical character recognition plus a new Click-to-Protect offering for smart watches. Click-to-Protect is currently available across multiple markets, including Hong Kong, Ireland, Italy, the Philippines and South Korea. "bolttech has a fast and seamless gateway into insurance creating an exciting and dynamic marketplace with growth opportunities for all participants across the value chain of insurance distribution. We believe the future of insurance lies in creating powerful partnerships and using digital technology to make insurance faster, easier and more accessible." Rob Schimek, Group CEO, bolttech The largest InsurTech Series A on record and a new unicorn bolttech has completed a US$180 million series A funding round led by Activant Capital Group with participation from Tony Fadell, Alpha Leonis Partners, Dowling Capital Partners, B. Riley Venture Capital and Tarsadia Investments. The oversubscribed investment round is the largest series A round for an InsurTech and values bolttech at more than $1 billion, giving the company unicorn status only one year after its launch in 2020. 25 Quarterly InsurTech Briefing Q2 2021 InsurTechs in Spotlight: Semsee Semsee is an easy-to-use, cloud-based platform for quoting small commercial insurance. Semsee has simplified and streamlined the quoting process for independent agents by combining carrier questions into a single smart form, eliminating the need for agents to re-key data into each carrier portal. The solution also instantly creates client records at the carrier, so agents can easily bind coverage. Semsee was founded in 2017 and is based in New York. Semsee overview With Semsee, agents can quickly obtain small commercial quotes from multiple carriers and offer better coverage comparisons to their clients. Carriers are able to get their products in front of agents when it matters most, the point of sale, and insurance buyers get the streamlined experience they desire in the digital age. Insurance agents can currently quote business owners policy (BOP), workers compensation, commercial auto, cyber and general liability on the Semsee platform, and the company is continuing to add more lines of business. Quoting: Simple, smart and fast Single submission: Satisfy multiple carriers with one application. Coverage review: Evaluate multiple quotes with at-a- glance coverage comparison. Smart forms: Easily answer carrier questions in one place using Semsee's proprietary algorithm to de-duplicate redundant questions. Accurate quotes: Agents can enter all required information to bind business and close more deals. Client records: The quote is automatically available in the carrier portal to make it easy to bind. Semsee's platform: Enhancing efficiency Business owners are looking for agents to help them navigate the complicated insurance landscape. Semsee's platform enables agents to be more efficient, so they can spend more time consulting with clients. Semsee provides tools to agents to enhance their ability to advise on risks and insurance products, including a coverage review feature that compares policy options -- including policies, limits and exclusions -- side by side. These powerful tools enable agents to guide their customers to the right coverage at a competitive premium. Semsee's benchmarking data highlights the best options, giving agents more data to support client discussions. 26 willistowerswatson.com Partnerships with carriers Semsee's platform generates quotes from multiple carriers via a single form so agents are exposed to more carriers and products. This is especially valuable for carriers with new products or terms, as they can quickly broaden awareness within the agent communication. Carriers can message agents enabling them to make changes in response to market appetite and offer special deals. Semsee can connect to any carrier or managing general agent (MGA) using an API connection or Semsee's proprietary RPA (robotic process automation) technology. Semsee currently partners with more than 20 carriers and is continually adding more. "There's a tremendous opportunity in small commercial. But taking advantage requires two things: the ability to offer customers more insight and guidance, and the right technology to serve small business clients quickly and efficiently. We are putting more information in agents' hands at the point of sale so they can help business owners understand what they're buying and what it covers. We are continuing to enhance our solution to increase transparency and speed up quoting, a win for agents, MGAs and carriers." Philip Charles-Pierre, CEO, Semsee InsurTechs in Spotlight: Uncharted Founded in 2017 in Singapore, Uncharted is a fast-growing ecosystem of insurance carriers, managing general agents (MGAs), brokers and partners, designed, built and operated by Uncharted's fully distributed team across North America; Asia Pacific; and Europe, Middle East and Africa. The Uncharted insurance platform-as-a-service (iPaaS) powers embedded and digital distribution and servicing solutions for the global insurance marketplace and can be deployed with any product, through any channel, in any market in a matter of weeks. The Uncharted iPaaS is trusted by the leading insurance brokers and MGAs operating across global markets, including Australia, New Zealand, Canada, Japan and Singapore. The platform is designed to offer a turnkey digital insurance solution that enables scalable distribution, underwriting, policy servicing and insurance product offerings across small and midsize enterprises (SME), consumer and extended warranty insurance, and it integrates seamlessly across both modern and legacy insurance stacks. Uncharted iPaaS Built cloud-native and designed with a headless API architecture, Uncharted iPaaS has been developed to facilitate high-volume, digital insurance transactions between global consumer and SME ecosystems and a growing panel of insurance and reinsurance capacity providers underwriting over 125 unique insurance products. Uncharted iPaaS offers a unique and configurable stack of core insurance services, each addressing key customer experience touchpoints and enabling a digitized end-to-end insurance process for insurance distributors and underwriters. The platform's capabilities support both automated and manual underwriting and product pricing, product design, packaging and hosting, policy life cycle and insurance portfolio servicing, and multi-channel distribution. Partnering with best-in-class technologies, iPaaS comes fully integrated into payment gateways (Stripe), CRM (Salesforce), data analytics (Google) and omnichannel servicing (MessageBird and Zendesk). Digital insurance solutions Both embedded and digital insurance products require a sophisticated, multichannel customer experience that is powered by an integrated technology stack. For SME and Consumer lines, the Uncharted iPaaS enables a full multichannel engagement and ensures the entire customer life cycle is managed effectively from point of marketing, sale, claim renewal and endorsement. By leveraging the power of both transactional and conversational data layered across core policy, pricing, claims, and third-party data, Uncharted's insurance clients are able to optimize and scale the balance between customer experience and portfolio management across its global digital portfolio. 27 Quarterly InsurTech Briefing Q2 2021 InsurTechs in Spotlight: Breathe Life North American-based Breathe Life is a unified digital distribution platform for life insurance carriers. Breathe Life's hybrid distribution platform provides insurers with best-in-class digital tools designed with those that sell and buy in mind, increasing the speed of policy delivery while reducing operational costs. Breathe Life's user experience modernizes and unifies a carrier's life insurance distribution to protect more families across advisor-driven platforms, self-serve or a hybrid of both. For carriers The white-labeled Breathe Life platform increases carriers' speed to market while reducing operational costs. The platform is continuously evolving and allows for the flexibility to adapt and optimize for conversion and improved user experience. For advisors The Breathe Life platform is designed to streamline and automate routine processes, thereby increasing productivity. Advisors get involved digitally with their clients to interact in real time, answering their needs without being distracted by previously time-consuming tasks and processes. For consumers Breathe Life strategically breaks down the complexity of insurance products and makes the experience of shopping for, and learning about, insurance products engaging and simple. Breathe Life: Key capabilities eApp: Allows advisors to start, edit and complete insurance applications with consumers -- a reflexive questionnaire that supports multi-product, multi-insured with complex underwriting capabilities. Customers can partly or fully self-apply through an optimized omnichannel and mobile-first process. Integrates with payments and e-signature as well as legacy or modern software. Need analysis: Allows agents to educate prospects on their financial needs and drive engagement via email or social media. Coverage and product recommendations are based on their needs and the carrier's business rules. Multi quoter: Inputs from digital fact finding feeds the rules engine that determines a product and coverage recommendation to the client. This allows the consumers to adjust coverage and premium amounts. Consumers have more control over fitting the price into their budget. Assisted buying process: Agents can easily track progress from prospects' activity to in-force policyholders. Agents can view, assist and take over without having to rekey any information. Customers can get help at every step of the process. Series A investment round Breathe Life received a US$5.4 million Series A investment round in Q3 2020. The round had participation from Clocktower Technology Ventures, Real Ventures, Cameron Ventures, Invest Quebec, Diagram Ventures and Desjardins. 28 willistowerswatson.com InsurTechs in Spotlight: Bindable Established in 2018, with a digital agency foundation, Bindable has quickly become the insurance technology leader for alternative distribution. Its proprietary platform brings together its agent software, a digital marketplace and a full suite of support services to offer flexible, market-ready solutions that connect insurance providers, trusted brands and consumers. About Bindable Bindable's platform is carrier and product agnostic -- able to ingest multiple APIs, power countless digital quote-to-bind journeys, provide agents omnichannel solutions to meet customers where they are, and offer API access to ecosystem adjacencies enabling them to make relevant and timely digital insurance offers. The platform powers over 275 digital marketplaces for global brands, financial institutions, affinity groups and carriers. Case Study -- iptiQ Americas by Swiss Re Bindable was recently selected to be the property & casualty platform in the United States for iptiQ Americas by Swiss Re. Licensing Bindable's platform will enable iptiQ to complement its life & health platform and bring a comprehensive solution to its partners, which include some of the largest brands in the world. This creates an opportunity for iptiQ to quickly align insurance with appropriate distribution channels in a single implementation. Since the announcement in April 2021, iptiQ has launched two national partners, demonstrating Bindable's speed-to-market capabilities. Offers multiple P&C products that are integrated and live on its platform, including a dynamic auto and home multi-carrier choice solution. Bindable is constantly evaluating other markets and adding new products and carriers to its platform. With over 30 direct carrier integrations, Bindable enables the world's top insurance brokers and carriers to efficiently serve hundreds of leading brands and affinity groups. Clients include Aon, NFP, Gallagher Affinity and Mercer. Key highlights Bindable has launched an insurance-as-a-service solution for its partners. Bindable's in-house agency services can be leveraged by its partners to enable them to quickly go to market and start selling insurance from day one. When these partners are ready to transition to running their own agency operations, they can upgrade the partnership by licensing Bindable's proprietary agent software, Policy Crusher®. Bindable delivers the tools, team and technology to power insurance distribution at scale for its partners. Bindable's client base has tripled since January 2020 as the demand for digitization continues to grow. "Digital insurance should be personalized, convenient and relevant. Brands, carriers, brokers and InsurTechs have an opportunity to provide their customers with insurance choices by making the right offer at the right time. Bindable is simplifying this for all players in the value chain by delivering a fully white-labeled virtual agency where intermediaries, carriers and customers can seamlessly interact." Bill Suneson, CEO, Bindable 29 Quarterly InsurTech Briefing Q2 2021 InsurTechs in Spotlight: Penni.io Penni.io enables insurance products to be embedded at any digital customer touchpoint. The Penni Connect platform connects insurance companies with distribution partners to sell insurance digitally. Penni.io is aiming to fundamentally change the way people engage with insurance by becoming the leading platform for digital distribution of insurance solutions. The company was founded in 2016 in Copenhagen and has raised US$8.9 million across two funding rounds. Penni Connect The Penni Connect platform enables insurance companies to embed their products with distribution partners to sell insurance digitally and simply. The Penni Connect platform and customer journeys allow for the plugging in of insurance products into third-party e-commerce, without any IT footprint. Penni Connect provides a standardized white-labeled shopping basket and checkout flow that enable the end customer to complete the insurance purchase online. Constantly optimising to bring value By supporting the most dominant types of embedded insurance, the Penni Connect platform offers its partners an innovative structure. Penni Connect Studio Everything is controlled through Penni Connect Studio, the customer dashboard, which is the powerful user interface of Penni Connect. The Penni Connect Studio provides Penni Connect customers with complete access to the platform's many advanced features for codefree insurance embedment and management, including live editing and styling of embeddable product flows, real-time reporting on product performance across partners and channels, detailed end-customer transaction history, simple insurance policy management, granular access control with user roles and permissions, and in-depth user documentation. 1. Scalability: Penni.io rapidly onboarding of new partners enables them to deliver its multi-partner strategy. 2. Time to market: Penni.io can bring a new product to market in under two weeks. 3. Conversion rate: Lead conversion is a key focus area for Penni.io who optimize performance based on live data. "Embedded insurance is the hottest InsurTech trend right now. It's a $3 trillion market opportunity that InsurTechs will help enable. Embedded insurance requires a new technology stack for insurers, which we will see new players provide. More than 50% of the distribution partners are not satisfied with their embedded insurance propositions, which is a huge problem for insurers." Esben Toftdahl Nielsen, Co-Founder and Chief Commercial Officer, Penni.io 30 willistowerswatson.com InsurTechs in Spotlight: Talage Founded in 2015 in the U.S., Talage is a provider of digital distribution software solutions for commercial insurance. The platform is linked directly into the carrier's underwriting systems, which allows quotes to be delivered instantly to the end user. The company has raised US$7 million across two funding rounds. Talage's Wheelhouse platform Talage's Wheelhouse solves the process of selling and servicing small business policies by unlocking digital distribution for both agents and carriers. Wheelhouse enables insurance companies and other financial institutions to equip appointed agencies with an online presence quickly and easily via user-friendly agent portals as well as additional tools to support agency automation and growth in the small business segment. Through Wheelhouse, Talage has partnered with 16 top-rated insurance companies across North America and currently powers the online purchase of workers compensation, liability and property insurance by small businesses in all 50 states. "Digital distribution, driven by APIs, is the way of the future in small commercial. Insurance companies who can equip their agents and distribution partners with the modern technology to make doing business online possible will be best positioned to win new business." Adam Kiefer, CEO and Co-Founder, Talage Talage Wheelhouse benefits Direct integration: Wheelhouse integrates directly with Talage's carrier partners' underwriting platforms, providing bindable insurance quotes (not rates) in minutes. It helps agents manage requests and grow their business. Easy setup: Talage's turnkey solution transforms any agent into a digital agency with zero technical knowledge required. Talage's team of engineers create a custom URL for the agent or agency that can be used in all the agent's digital touchpoints. Commission: 100% of the commission and book belongs to the agent. Talage only charges a small setup fee and a monthly licensing fee. One application programming interface (API) integration: One API integration with Talage enables thousands of agents and their digital touchpoints to reach more business owners than ever before. Talage's partnerships with top-rated carriers provide agents with direct access to bindable quotes, reducing the process from days to minutes. CARRIERS API Retail Agencies Wholesale Brokerages MGAs InsurTechs Direct to SMBs SOFTWARE SMALL BUSINESS 31 Quarterly InsurTech Briefing Q2 2021 The Art of the Possible Adrian Jones, Hudson Structured Capital Management The Art of the Possible: Adrian Jones, Hudson Structured Capital Management Adrian Jones Managing Director, Hudson Structured Capital Management Adrian Jones is a Partner of HSCM Ventures and Managing Director of Hudson Structured Capital Management Ltd (HSCM). HSCM Ventures is the insurance venture capital arm of HSCM. Prior to joining HSCM in early 2021, Adrian was Deputy CEO of P&C Partners at SCOR, the global reinsurance company. At SCOR, he established SCOR P&C Ventures and led several of its investments. Prior to SCOR, he was head of strategy at RenaissanceRe from 2010 to 2016. He started his career at Bain & Co, the consultancy, from 2001 to 2010. He is a graduate of Wharton and Columbia. 1. Adrian, great to chat with you. For the benefit of our readers, could you please tell us what is Hudson Structured Capital Management? HSCM is an asset manager founded in 2016 focused on alternative assets and targeting mezzanine returns. The firm's main activities are in (re)insurance and transport. Both of these sectors are capital-intensive, regulated and global. As of March 31, 2021, the firm managed approximately US$3.1 billion of committed capital. HSCM is owned by its employees. HSCM started in InsurTech through the reinsurance strategy, starting with reinsuring InsurTechs; hence, the team came to know the InsurTech market and expanded into offering other forms of capital, including equity. HSCM Ventures is now a distinct strategy led by Michael Millette (co-founder of HSCM), Vikas Singhal and me. "One of my favorite parts of the job is to consult to smart entrepreneurs and connect them to the people they need to know to get their businesses off the ground and scaling. Too often people in insurance cloak ourselves in opaque jargon, which is anything but inclusive. Demystifying the industry and making connections are parts of the job in venture." 2. Why did you become a venture capitalist in insurance? I believe that insurance is changing rapidly, and I want to fuel the change. Venture capital is an opportunity to help great entrepreneurs; to lean into the disruption; and to make insurance better, faster and cheaper for consumers. Back in 2016, entrepreneurs were developing solutions to real problems in the industry, yet they met scepticism from many quarters. Even today there is still some scepticism, but InsurTech has already begun refreshing the industry's talent pool, culture, distribution channels, products and capital base. Ultimately, InsurTech is creating an industry that works better for consumers. When I started in reinsurance in 2010, I heard similar dismissiveness towards another disruption: insurance-linked securities (ILS). The dismissiveness lasted past the point when ILS was obviously driving pricing in reinsurance. Fast forward: Today there is close to $100 billion of ILS (per Aon). And the reinsurance business has been reshaped: Of the 27 largest publicly traded reinsurers in 2010 (per S&P), more than half have been acquired. While there were many factors in this reshaping, ILS was surely a material contributor to a different industry structure than we had a decade ago. I expect that as capital continues to enter InsurTech, the insurance business will be increasingly reshaped by a force that I saw experienced industry experts dismissing just a few years ago. 34 willistowerswatson.com "I believe that insurance is changing rapidly, and I want to fuel the change. Venture capital is an opportunity to help great entrepreneurs; to lean into the disruption; and to make insurance better, faster and cheaper for consumers." 3. How does HSCM Ventures support entrepreneurs in insurance? HSCM Ventures, together with the broader HSCM platform, seeks to support entrepreneurs through the various stages of investment into their companies and potentially through exit. In addition to multiple forms of capital and the platform, we also try to bring founders insurance specialist advice. As an example, one of the toughest questions from founders at all stages of development is that of carrier versus MGA (managing general agent) versus other forms of business, and how to capitalize a young insurance business optimally as it evolves. This is a perennial question that is quite specific to insurance. Even the parallels with fintech are limited. In U.S. insurance, there are 50 different regulators; there is no federal insurance charter. But insurance does have potentially useful structures such as reciprocal exchanges that exist nowhere else. There's no perfect organizational form, so founders often seek the most flexible capital to manage their business over time. One of my favorite parts of the job is to consult to smart entrepreneurs and connect them to the people they need to know to get their businesses off the ground and scaling. Too often people in insurance cloak ourselves in opaque jargon, which is anything but inclusive. Demystifying the industry and making connections are parts of the job in venture. On the other end of the venture life cycle, HSCM is also affiliated with a special purpose acquisition company (SPAC) focused on insurance. The decision to go public is one of the most consequential that a founder, board and shareholders can make. As early-stage company builders, we try to benefit from working with the SPAC to understand how public markets think about the companies we build. We can also advise InsurTechs on the transition into public markets -- when they are ready. 4. Adrian, your background was at SCOR, which held a different mandate to that of HSCM. From your perspective, what is the difference between a corporate venture capitalist versus a hybrid venture capitalist? Would an InsurTech receiving investment perceive any difference? Insurers in the U.S. had $7.5 trillion of investable assets at the end of 2020 (per the National Association of Insurance Commissioners). Insurers typically have chief investment officers who are often among the most senior executives; thus insurers, more than companies outside insurance, can be uniquely suited to invest in companies and funds operating in their own business. Insurers are indeed using their balance sheets to engage with InsurTech. According to FT Partners, last year 44% of global InsurTech deals had strategic participation, which includes direct investment by insurers as well as investments by insurers through specialized venture funds. There are also examples emerging of corporates who appear to have made quite astute investments in InsurTechs. 35 Quarterly InsurTech Briefing Q2 2021 The Art of Possible: Adrian Jones, HSCM continued At HSCM Ventures, we encourage founders to cultivate a range of disciplines among their investors. The growth-oriented Silicon Valley-style investors can be experts in building and scaling companies across industries. Corporates can bring depth of expertise. Individual investors ("angels") can add valuable connections. At HSCM Ventures, we try to combine all these disciplines to support founders and their executive teams. 5. In April of this year, HSCM launched the HSCM Public InsurTech Index (HPIX). Could you tell us a bit more about this and why you decided to apply a scientific lens to a non-scientific subject? We have seen vociferous debate about InsurTech for years now, and it only increased with the InsurTech IPOs [initial public offerings] last year and this year. I was having so many debates that I made a simple spreadsheet that calculated a rudimentary HSCM Public InsurTech Index values 225 200 175 150 125 100 75 50 index. We decided to draw up a formal Index Guideline and have the HPIX professionally administered as a service to the InsurTech community. The HPIX aims to track the share price performance of a basket of stocks of U.S. companies with novel business models differentiated by technology. The HPIX was first published in April of this year with 18 components, all of which have gone public in the last 10 years. Selecting components for industry-based indices is subjective, but we tried to be as rules-based and objective as possible. Not everyone agrees on every component, nor are all of the components self-described InsurTechs. Nonetheless we hope that the Index is useful for comparing the performance of newer insurance sector companies as a whole, against each other, against other tech companies and against traditional insurers. You can run your own analysis by finding the index on Bloomberg (HPIX Index), Reuters (.HPIX), FactSet and Solactive.com (enter "HSCM" in the search box). HPIX 02/01/2020 02/02/2020 02/03/2020 02/04/2020 02/05/2020 02/06/2020 02/07/2020 02/08/2020 02/09/2020 02/10/2020 02/11/2020 02/12/2020 02/01/2021 02/02/2021 02/03/2021 02/04/2021 02/05/2021 02/06/2021 The HSCM Public InsurTech IndexTM (the "Index", "HPIX") is provided for informational purposes only. Certain data is provided by third party sources believed to be accurate and reliable, any of which may be erroneous or change without notice. HSCM disclaims liability for errors, any obligation to continue to provide the index, any obligation to inform you of errors or changes to the methodology, and any obligation to administer the index in any particular way. The Index Guideline, available at Solactive.com, describes in greater detail the creation of the Index, the methodology, how certain events are handled, additional disclaimers and the fact that the Index values are partially based on a back-test. Index values do not represent the results of actual trading. Past performance is no guarantee of future results. Solactive AG ("Solactive") is the licensor of the Index. The financial instruments that are based on the Index are not sponsored, endorsed, promoted or sold by Solactive or HSCM in any way and Solactive and HSCM make no express or implied representation, guarantee or assurance with regard to: (a) the advisability in investing in the financial instruments; (b) the quality, accuracy and/or completeness of the Index; and/or (c) the results obtained or to be obtained by any person or entity from the use of the Index. Solactive and HSCM reserve the right to change the methods of calculation or publication with respect to the Index. Neither Solactive nor HSCM shall be liable for any damages suffered or incurred as a result of the use of (or inability to use) the Index. 36 willistowerswatson.com 6. What are your perspectives on the future direction of InsurTech? What do you see as the next "big thing"? I may disappoint you in saying that the next big thing is similar to the last big things. Specifically: Product: Insurance has a $1.2 trillion protection gap (per Swiss Re), yet the industry's revenue is flat versus GDP (for 2008 2018, per Swiss Re). Tech is increasingly allowing customized, underwritten insurance. New products range from personal lines innovations to cyber and flood. One area where there has been difficulty despite many efforts is parametric insurance, which looks great on paper but has usually seen poor sales. Distribution: Insurance agents capture twice the profit of carriers, according to McKinsey. While agents are not going away -- the U.S. government counts 800,000 of them -- market share is shifting towards tech-enabled agents, digital distribution of simpler products, embedded insurance, and straight-through processing of tasks formerly handled by agents such as underwriting and claims. Analytics: BCG's 2020 Insurance Value Creators Report showed that digital leaders in insurance generate 13 points better growth in tangible book value compared to digital laggards. All of the big themes continue: third-party data sources, telematics, property analytics, IoT [internet of things], wearables and analytics platforms. omnichannel distribution to meet customers where they are, with the offering they want, and managing any resulting channel conflict. Insurance is more complicated than most other products sold online -- it's a liability, not an asset -- but the technology exists to make distribution far more efficient and better for consumers. Distributed ledgers, for example, could be powerful in many parts of the risk transfer value chain. The technology exists to administer reinsurance treaties as smart treaties, thus removing the rekeying, reconciliations and errors inherent in the current value chain. In primary insurance, APIs, aggregators and comparison raters can make distribution far more efficient. The challenge is not technology; it's people and leadership. Insurance is a fragmented industry where many executives call themselves fast followers, not leaders; hence, they tend to buy innovation, including in distribution. Or they rely on partners to prove innovation for them, which is one reason why so much business, ranging from simple personal auto to complex reinsurance, still operates on a 1990s technology: email. The danger for everyone in the value chain is not that they will be disintermediated but that someone will squeeze in between them and their customers to fill a critical need where incumbents refuse to lead. 8. What advice would you give an upcoming InsurTech entering the market? Operations: Insurance has made no significant reductions in administrative costs over a 15-year period, according to a McKinsey study from 2018. McKinsey points out that some other industries have taken out half or more of their overheads over the same period. The insurance industry has the tools -- submission intake and processing, better underwriting data, better claims analytics, no code software, natural language processing, robotization. People: There is regular hand-wringing about a looming retirement crunch, but embracing InsurTech is one of the best ways for carriers to recruit the new digital talent they need. 7. This quarterly theme is distribution and digital delivery. What are the biggest evolutions/ innovations that you have personally observed in this space over, say, the last five years? When I was in reinsurance, the number one request I got from insurers around the world was for product. Close behind was new channels for distribution, which today often means developing One characteristic that differentiates great InsurTech entrepreneurs is enormous persistency. Insurance is not a business that is entranced by brilliant founders straight out of business school sprinkling pixie dust. The people who will change the industry going forward are those who take the time to study the industry and its history, then spend years building their "overnight success." Insurance is a "get rich slowly" business. Insurance is ripe for disruption, but founders need to be in it for the long run. The views expressed are the views of Mr. Adrian Jones, Partner of HSCM Ventures, as of June 2021 and may not take into account material economic, market, regulatory and other factors that could impact such views. We have no obligation to update or advise you of any changes or errors. There can be no guarantee that such views and opinion will be realized. Certain information discusses general information related to the specific industry, activities and trends, or other broad-based economic, market or other conditions and should not be construed as research. The views expressed may change at any time. 37 Quarterly InsurTech Briefing Q2 2021 Incumbent Corner Sean Ringsted on Chubb Studio Incumbent Corner: Sean Ringsted on Chubb Studio Sean Ringsted is Chief Digital Officer at Chubb and leads the global insurer's efforts aimed at transforming the company into a digitally integrated organization. These initiatives involve all areas that produce and support Chubb's business into a digital environment, including underwriting, sales and service functions that touch policyholders, prospective customers, distribution and internal operations, and technology. Sean Ringsted Chief Digital Officer at Chubb Chubb is the world's largest publicly traded P&C insurance company and the largest commercial lines insurer in the U.S. With operations in 54 countries and territories, Chubb provides commercial and personal P&C insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. Chubb maintains executive offices in Zurich, New York, London, Paris and other locations, and employs approximately 31,000 people worldwide. 1. Sean, it is great to have you. Would you please be kind enough to tell our readers about yourself, Chubb and your role at Chubb? Chubb insures businesses and consumers around the world. We serve businesses of all sizes, from the largest multinationals to middle-market, small and micro-businesses. We also serve consumers globally. Our business serving high-net-worth families in North America is well known, but we also have a global personal lines business that covers everything from cell phones and autos to household contents. In addition, Chubb has one of the industry's largest personal accident and supplemental health insurance businesses. The company has more than $190 billion in assets and reported $41 billion of gross premiums written in 2020. Chubb has exceptional financial strength, product breadth and deep underwriting expertise. Chubb is also known for its superior claims handling and risk engineering capabilities. As Chubb's chief digital officer, my responsibility is to lead our digital efforts across the organization and to help solve new and emerging insurance needs, digitally. I've been in this fascinating industry for more than 25 years and am fortunate to have various roles in actuarial, analytics, risk and technology. I can tell you that there has never been a more exciting time in our industry -- and at our company. Much of that excitement comes from our growing toolbox of digital capabilities and distribution partnerships around the world. 40 willistowerswatson.com 2. The purpose of the Incumbent Corner section is really to serve as a reminder that great InsurTechtype innovation isn't just being done by start-ups and outsider technology firms but also large incumbent players like Chubb. Can you please describe Chubb's technology strategy? Our ultimate aim is to use technology to modernize and reinvent the business of insurance. That involves using digital to provide faster, smarter and more personalized products and services at the fingertips of our customers. Speed-to-market and the ability to deliver instant service at scale is critical. Incumbents like Chubb have competitive advantages in this race, including our data-driven insights and deep underwriting and claims experience, and we're focused on technology to maintain our edge. At Chubb, we invest heavily in technology, about $1 billion annually. This includes investments in innovation; the ability to provide anytime, anywhere access and processing; and new front-end customer capabilities. Some of our investments are also modernizing our technology stack, which isn't glamorous, but extremely critical and foundational. First and foremost, we are focused on the customer experience. The way we see it, the customer experience is the product. We are modernizing the process of quoting, purchasing, submitting claims and other policy management services -- making the process easier for the customers of our brokers, agents and distribution partners around the world. Consider Chubb Studio, the award-winning platform we launched last year that simplifies and streamlines the distribution of Chubb insurance products through our partners' digital channels. Chubb Studio offers industry-leading speed-tomarket for our partners. Of interest, it also leverages our legacy technology. And when it comes to technology and innovation, there's significant cross-pollination at Chubb. Our digital strategy is thoughtful and aligned with our business objectives and growth opportunities. Digital is not something bolted on or operating separately from our core business; it's integrated into everything we do -- it's multi-dimensional, embedded in our business with P&L accountability, affecting every area of our organization. 3. Specifically focusing on Chubb Studio, can you please tell our readers about its origin, the thinking behind it and how it now functions in practice? Chubb Studio is one of our home-grown digital bets. Chubb Studio is a set of multiple plug-and-play APIs [application programming interfaces] and microservices that make digital insurance offerings accessible to any partner that wants to add insurance protection to its suite of products. Chubb Studio supports a wide variety of consumer products that offer protection for our customers and their families, including if they are sick, injured or pass away; their devices, gadgets, or valuables if they are damaged, lost or stolen; events, experiences and travels if they are cancelled, cut-short or delayed; or their businesses, income and employees in the event of a claim. The capabilities of Chubb Studio were built on the success of our ability to forge affinity distribution partnerships with leading brands globally. Our vision was to create a platform that could scale the technical capability that we have been providing to partners such as Citibanamex, DBS, Grab and others to an even broader range of partners. The platform is performing particularly well across a number of countries, regions and distribution partner verticals, primarily outside the United States, and we are incredibly busy adding to our already extensive portfolio of product and partner integrations. 4. Chubb Studio is described as "insurance in a box." What do you mean by that? Chubb Studio allows our partners to quickly and easily make online insurance services from Chubb available to their customers or members on a white-labeled, co-branded or Chubb-branded basis; that's why we call it "insurance in a box." It integrates what we do into what they do; however, the technology is but one part of the insurance offering puzzle. We are also bringing Chubb's expertise to all the other critical areas -- such as legal, compliance, claims and risk capital -- that are needed to make insurance work and provide a great experience for our partners and their customers. The developer friendly, low-code/no-code platform has customizable microsites, embeddable widgets and APIs that enable partners to rapidly deploy insurance products to their customer base -- with options ranging from a website to a widget to deeper in-path deployments. It's a full-service solution for partners to integrate our products and services digitally within their own ecosystems while Chubb handles the insurance stuff, such as underwriting and claims. Our partnership with Nubank, Brazil's largest digital bank, is a great example. We launched a fully digital life insurance offering in 2020. Nubank Vida, underwritten by Chubb, entered the Brazilian insurance market with a fast, seamless and personalized capability available to the bank's 40 million customers. We're leveraging digital technology to provide affordable, basic life insurance coverage to a customer base previously without access to financial services. With Nubank, we're selling life insurance in an app through a digital bank that did not exist three years ago. And we do so by asking customers just three questions. 5. How do partners of Chubb work with Chubb Studio, and what is the long-term goal behind it? The ease of technology integration with Chubb Studio allows partners to focus more on the product proposition to their customers. Our partners find the most value in Chubb Studio's ability to quickly develop and integrate new products for their customers, enhancing value for both customer and partner. It's created opportunities for us to think about new consumer products for our partners -- and bring them to market quickly. For example, for Chubb's partner DBS, the largest banking group in Southeast Asia, the capabilities of Chubb Studio enabled the team to quickly develop and deploy free three-day COVID-19 financial protection for DBS customers when the pandemic hit. Through Chubb Studio, the company also expanded its partnership with Grab by offering its customers on-demand, per-day personal global travel insurance. Additionally, the Singaporebased technology company that also offers ridehailing transport services, food delivery and payment solutions moved swiftly at the onset of the pandemic to enable an offer for its drivers and delivery partners for Chubb coverage that provided a lump-sum payment upon diagnosis of COVID19. 41 Quarterly InsurTech Briefing Q2 2021 Incumbent Corner: Sean Ringsted on Chubb Studio continued We also recently announced a new partnership with Rappi, the Latin American unicorn, to make home and mobile phone insurance protection available to its more than 10 million customers in Mexico. Chubb Studio's speed-to-market and API capabilities allowed the SuperApp to quickly and easily add digitally native "white label" insurance offerings to their platform. Seeing our digital distribution platform open new doors and create new opportunities has generated a great deal of excitement throughout our organization. Long term, these new products and partnerships not only serve to enhance our growth -- they are the seeds we are planting for the future. The future of Chubb Studio is very bright; stay tuned. 6. What are the main competitive advantages of Chubb creating and releasing a platform like Studio when compared with, say, a traditional InsurTech? Chubb Studio technology provides our digital partners ready access to the Chubb product portfolio -- one of the largest in the global insurance industry and backed by deep underwriting expertise, global scale and exceptional financial strength; hence, partners get the best of both worlds -- modern digital technology plus a world-leading product portfolio. We are finding success with leading brands across the digital economy -- banks, retailers, airlines, mobile network operations and the gig economy -- for partners to offer their customers Chubb consumer and small business products. Chubb also has other critical edges. We have tremendous consistency in our delivery to local markets. We apply our experiences and learnings from one strategic distribution partnership in one market to another in a separate geography, enabling us to create unique customer experiences that match our partners' digital assets. This scale gives us the freedom to experiment with cutting-edge technologies as they emerge. Also really important for us is the trove of operational data that we have amassed, which our teams actively use in product development, marketing, underwriting, etc. As a final thought, both incumbents and InsurTechs share a collective ambition to meet the needs and expectations of today's and tomorrow's insurance consumer. Over time, everything will be digital, including insurance. And the distinction we draw today between InsurTechs and incumbents will blur and likely fade. 7. To what extent does Chubb Studio need function/product releases, updates, maintenance, evolving? This will be a living, breathing effort -- no different from a software company. We are actively adding more products and value-added services to the "box" as well as continually driving a superior claims experience and simplifying the process even further for our partners and their customers. As customer expectations continue to evolve in the digital age, so must we. Customer research, co-development with partners and design thinking will continue to drive our features, product releases and updates over time. As I mentioned earlier, Chubb Studio continues to win partnership deals and expand our reach around the world. 8. This particular briefing is focused on the future of digital distribution and delivery. Chubb Studio is a very bold initiative to try to improve many parts of the (re)insurance distribution function; in particular, what single part of the distribution function would you say has benefitted the most from the advent of contemporary technology? The goal is to offer omnichannel access to Chubb products and services, a one-stop shop, from brands that consumers know and trust, creating a stickier customer experience and building brand preference and customer loyalty. We need to digitalize what makes sense for the customer while also recognizing that the customer may want human, analog touchpoints. At the same time, the new technology provides access to new customer pools as increasingly more people now have access to financial services through mobile as more of the economy digitalizes. This allows the creation of products that can be offered to customers in a relevant and contextual manner, embedded in the customer's transaction journey. Think about being able to make insurance available to people in the right place, at the right time, in a way that is seamless, very contextual and enabled because the underlying plumbing makes it all work. For example, I can pay for my taxi ride to the airport directly through the company's app as well as opt to insure my ride as well as purchase travel insurance for my flight -- all without cash nor the need to pull out my credit card. And as digital drives change in distribution and products, the industry also needs insurance regulations around the world to keep pace. For example, the cycle time for product development needs to be fast. We need to offer products at the transaction point where customers want to be met for insurance purchases. All of this requires collaboration between industry and regulators to shift the regulatory framework from an analog world to a digital one. 9. More broadly, what impact do you think relevant technology will have on distribution and delivery? Technology is table stakes. The "Amazonification" effect has increased consumer demand for speed, personalization and convenience, driving innovation across the digital economy. The connective tissue and enabler for much of this technology are APIs, which clearly impacts the insurance sector, its distribution channels and how it works with other sectors of the economy. It's also important to highlight the social component that technology is having on distribution in countries that are digitizing quickly and now opening access to more of the population (e.g., through mobile) to financial services, that were previously too expensive or not accessible through brick and mortar distribution. For Chubb, we continue to invest in expanding our digital capabilities in terms of products, service and technology to drive the customer experience across our distribution channels -- whether agent, broker or partnerships. We're excited by what we are seeing through partners, either existing players that are digitizing or new digital natives, as they transact and grow in the digital economy. Their customers have new and emerging needs which we can help solve with products and services, and technology is a critical part of that solution. "Both incumbents and InsurTechs share a collective ambition to meet the needs and expectations of today's and tomorrow's insurance consumer. Over time, everything will be digital, including insurance. And the distinction we draw today between InsurTechs and incumbents will blur and likely fade." 10. And finally, as someone who has an enormous amount of experience in our industry and is in this space in particular, what advice would you give a start-up/InsurTech that is looking to break into our industry? There is so much opportunity in front of us as an industry to modernize insurance products and services and at the same time meet the new, emerging risks. These opportunities are driving plenty of competition, and so I think it's particularly important in this landscape to have a very clear, differentiated value proposition. Simply having the latest technology or impressive customer analytics is necessary but not sufficient. In addition, there must be recognition of what I would call the operational last mile -- e.g., privacy, security, claims -- and remembering that we are a regulated industry. Chubb's work with InsurTechs spans the globe and ranges from distribution (e.g., digital brokers) at the front end all the way along the insurance value chain to our back end (e.g., payments, digital wallets). We have great examples of collaborative, winwin partnerships that offer complementary capabilities -- the right tech and go-to-market strategy combined with Chubb's international presence and financial strength. But we talk to far more than we work with, often finding that the value proposition is not a fit for us -- limited scope or not scalable. So, perseverance is the key to unlock the right InsurTech/carrier match. 42 willistowerswatson.com 43 Quarterly InsurTech Briefing Q2 2021 Thought Leadership Clyde Bernstein on 3D distribution at 5G speed Thought Leadership: 3D distribution at 5G speed This quarter Clyde Bernstein shares his thoughts on why our current insurance distribution methods have led insurers and consumers to a crossroads and the needed response from insurers to realize continued relevance. Clyde Bernstein Head of Broking, Great Britain and Global Leader of Data and Technology Broking Strategy Whether it's the value derived from existing products or the client experience at the time of crisis, the insurance ecosystem needs a health check. While the degree of maintenance varies, areas such as customer experience and how distribution influences the end solution require an overhaul. Distribution operates as the engine room of the supply chain. With careful tuning, opportunities exist to spark meaningful improvement in client value and turbocharge downstream benefits, such as efficiency and insurer proposition. Initially, the insurance industry may heed learning from vehicle manufacturing where different models are engineered via common platforms, saving cost and improving productivity. Likewise, insurance will adopt data standards that assist digitization, delivering "once and done" processes that ultimately lower operating expenses. Aside from maintaining the "highway," what other rewards await as the industry navigates its transition? During the pandemic, universal digital adoption advanced more in this period than in the total 10 preceding years. In today's rapidly evolving and complex world, the rate of risk change outstrips the industry's historic ability to design, engineer and deploy appropriate risk solutions. To break this paradigm known as RiskNovation, a new approach to distribution, risk assessment and capital is required. New models and distribution methods will help unlock capital, fuel liquidity and stimulate innovation, opening opportunity to challenge new and systemic risks. Existing methods of packaging and marketing risks employ a onedimensional placement approach. The logistics of understanding and articulating a client's risk, choreographing placement and sourcing capital is both time consuming and cumbersome. Legacy processes and technologies necessitate the placement of risk into predefined products, with generic basis of indemnification, policy term and rating. Electric vehicles vs. Petrochemical "Lift the hood on the insurance industry and you will see the engine in danger of over-heating. The diagnosis from those tasked with keeping the industry on the right trajectory is that a different motor is needed." For example, consider the current construct and marketing of a commercial property damage and business interruption insurance policy. Here, the risk profile and exposure are broad and involve multiple assets, triggers and coverage. These include natural catastrophe exposure, man-made hazards and resultant loss, often including extensions for non-damage business interruption. Today's insurance architecture wraps many coverages and conditions under a single product form, inviting complexity and constraining an insurers' ability to play to its underwriting strength. For instance, an insurers' tolerance for Japanese typhoon perils under a multinational program may not represent the optimal use of capital at that point in time, whereas the same insurer may have strong appetite for the client's fire or business interruption risk. In present form, the understanding of an insurer's target portfolio is, at best, subjective and only true at the point of communication. Risk appetite is effectively redundant the moment market forces change, strategy shifts or client needs pivot. In the previous illustration, the non-codified contract, inclusion of modeled and non-modeled risks and legacy placement process, has several drawbacks. Existing "all or nothing" risk distribution leaves capital on the sidelines by marginalizing investors, thereby reducing capacity and creativity. Furthermore, it prevents the ability to achieve irrefutable trust in the contract -- the primary purpose of risk transfer. In a continuously changing risk environment, where enterprise value is increasingly dominated by intellectual horsepower and intangible risks, trading must evolve. Having tackled the "plumbing" -- the addition of computing power -- large data and collaboration make dynamic measurement and transfer of risk feasible. Rather than an annual venture, structured data from all correlated and non-correlated sources are used to assess risk with speed and intelligence. Data will drive a more proximate cost of risk, empowering clients and insurers to make more informed risk optimization decisions. As risk is traded at ease powered by live pricing and analytics, the concept of renewal fades in the rear mirror. The negative connotation associated with early contract termination is now perceived positively as new revenue by insurers and a valuable new service offering for the client. Resilience becomes an increasingly strategic part of the enterprise with risk transfer or retention decisions determined by live market sentiment and business need. This approach applies equally to reinsurance, where case-level underwriting decisions supported by portfolio optimization tools enable a more efficient use of own and third-party capital. Just as new growth emerges from dynamic trading of insurance risk, (re)insurers will find effective ways to arbitrage price differences by market. Lift the hood on the insurance industry and you will see the engine in danger of over-heating. The diagnosis from those tasked with keeping the industry on the right trajectory is that a different motor is needed. Fortunate passengers will enjoy the ride as new distribution and technologies deliver a better and more responsive client experience. Retirements will happen along the way. In the end, those that succeed will look back and be grateful for the timely check under the hood. 46 willistowerswatson.com 47 Quarterly InsurTech Briefing Q2 2021 Transaction Spotlight Key Transactions from This Quarter Transaction Spotlight: Ethos Founded in 2016, U.S.-based Ethos underwrites, administers and distributes life insurance using technology and advanced data science to make the purchase process instant and accessible to families across the U.S. Customers can self-purchase instantly online or speak to a licensed agent ready to help guide them through the process. The company raised a US$200 million Series D funding round in May 2021. About Ethos Ethos underwrites, administers and distributes life insurance using technology and advanced data science to make the purchase process instant and accessible to families across the U.S. Through its technology, Ethos breaks down the barriers that have long prevented customers from purchasing life insurance, including underwriting with no medical exams, blood tests and complex paperwork. This enables Ethos to approve many people, regardless of financial status, health status or age, who would otherwise be denied coverage or punitively treated. Series D investment round Ethos' Series D financing was led by General Catalyst, with participation from Sequoia Capital, Accel Partners, Google Ventures, RocNation, Gladebrook and other undisclosed investors. The funding will be used to enrich Ethos' technology and data platform and help launch new products to reach new customers. The Series D round brings the company's total funding to over $300 million. Ethos' revenue and number of users have each grown by more than 500% year over year, and the company expects to issue $20 billion in life insurance in 2021. "We are on a mission to protect the next million families and will use this money to continue improving the best insurance customer experience ever created. This funding will help us enrich our technology and data platform, and help us launch new products to enable everyone an opportunity to protect their families." Peter Colis, CEO, Ethos Transaction Spotlight: Bought By Many Bought By Many has secured a US$350 million Series D funding round led by EQT Growth and with participation from Willoughby Capital, FTV Capital, Octopus Ventures, CommerzVentures and Munich Re Ventures. The latest funding round will drive the plans of Bought By Many's holding company, Many Group, for further global expansion and new product development, which will launch later in 2021. About Bought By Many Founded in 2012, Bought By Many launched its market-leading pet insurance in 2017 in the U.K. under the Bought By Many brand. The company introduced market-leading pet insurance and wellness policies, such as cover for preexisting conditions, and was the first pet insurance provider in the U.K. to offer online claims. Bought By Many was also the first in the U.K. to offer customers free, unlimited access to video calls with registered vets, a lifeline for many pet owners throughout COVID-19. Bought By Many offers a fully digital insurance process, with the technology and growing data bank underpinning an evolving global offering that enables fast decision making and claim automation. Bought By Many's bespoke application programming interfacedriven policy administration system allows it to scale and launch new insurance products in as little as eight days. Bought By Many operates under the brand name ManyPets in Sweden and the U.S. It entered Sweden in 2019 and started a U.S. rollout in March 2021, where it offers a subscription-based model with access to both pet health insurance and pet wellness packages. Globally, Many Group now covers almost half a million pets and has doubled gross written premium for three consecutive years to more than $220 million in the past 12 months. "Our mission is to make the world a better place for pet parents. By creating unique policies, dramatically improving customer experience and working closely with vets, we have made it possible for pets to be healthier and for them to enjoy longer, happier lives with their owners." Steven Mendel, CEO, Many Group The U.K. pet boom shows no sign of stopping. Bought By Many recorded a 65% year-on-year increase in the number of pets being signed up for insurance, which suggests that owners are thinking about their new pet's long-term health, an important part of responsible pet ownership. 50 willistowerswatson.com 51 Quarterly InsurTech Briefing Q2 2021 Transaction Spotlight: Shift Technology Shift Technology, a software-as-a-service (SaaS) provider of artificial intelligence (AI)-driven decision automation and optimization solutions for the global insurance industry, has raised a US$220 million Series D round. About Shift Technology Shift Technology delivers AI-native fraud detection and claim automation solutions that are built specifically for the global insurance industry. The company's SaaS solutions identify individual and network fraud with double the accuracy of competing offerings and provide contextual guidance to help insurers achieve faster, more accurate claim resolutions. Shift Insurance Suite In January, 2021 Shift Technology introduced the Shift Insurance Suite to enable insurers to apply AI-based decision automation and optimization technology to an even wider array of critical processes across the policy life cycle, including underwriting, subrogation and compliance. The company now serves more than 100 customers in 25 different countries and has analyzed nearly two billion claims to date. The Shift Insurance Suite targets several additional processes both related to claims and across the policy life cycle. Shift Underwriting Fraud Detection: Designed to optimize decision making at the point of sale, Shift Underwriting Fraud Detection applies AI to the policy underwriting process to detect inaccurate or noncompliant applications. Actionable alerts help to minimize fraudulent policies, avoid undesired risks and assign appropriate premiums. Shift Claims Fraud Detection: Identifies individual and network-perpetrated claims fraud with twice the accuracy of other solutions. The solution makes reviewing flagged claims and taking informed, data-driven actions easier for claim handlers and special investigation unit teams by delivering a comprehensive, prioritized set of suspicions underlying each fraud alert in a single, easy-to-navigate dashboard. 52 willistowerswatson.com Shift Claims Automation: Uses AI to automate the claim process from first notice of loss through to final settlement. Through its application of advanced optical character recognition technology, Shift Claims Automation is particularly focused on removing the need for manual document review throughout the claim process. Shift Subrogation Detection: Uses AI to quickly and accurately discover opportunities to recover costs from third parties. The technology not only finds those claims for which subrogation is possible but also generates actionable cases supported by concrete evidence. Shift Financial Crime Detection: Enables insurers to better understand the status of all participants in their ecosystems to support anti-money laundering, employee fraud detection and other compliance initiatives. Shift Technology's Series D investment round Shift Technology's Series D round was led by Advent International, through Advent Tech, with participation from Avenir Growth Capital, Accel, Bessemer Venture Partners, General Catalyst and Iris Capital. The latest funding round brings total investment in Shift to US $320 million and a market valuation of more than $1 billion. The investment will fuel the company's execution of its vision to revolutionize the policyholder experience through wide-ranging products that apply AI and advanced data science to key insurance processes. Shift will use this investment to expand its presence in key geographies, including the U.S., Europe and Asia. In the U.S., the company will look to further penetrate the property & casualty insurance market as well as expand into the health insurance sector, an area in which Shift sees a large opportunity. The funding will also be used to drive research and development efforts in the creation of new solutions to address emerging decision automation and optimization requirements for forward-thinking insurers. "The entire Shift team has worked tirelessly to build this company and provide insurers with the technology solutions they need to empower employees to best be there for their policyholders. We have only just scratched the surface of what is possible when AI-based decision automation and optimization is applied to the critical processes that drive the insurance policy life cycle ." Jeremy Jawish, CEO and Co-Founder, Shift Technology 53 Quarterly InsurTech Briefing Q2 2021 Technology Spotlight Radar Workbench Technology Spotlight Radar Workbench, from Willis Towers Watson's awardwinning Radar suite, is an analytical platform that helps commercial underwriters make and implement confident decisions at pace. The nature of commercial underwriting means that predicting performance can be uncertain and challenging. At Willis Towers Watson, we recognize the significance of the commercial underwriters' role and the impact they have on managing this uncertainty as well as the valued contribution they make to portfolio performance. With these positive outcomes in mind, Radar Workbench uses data and analytics to help guide case underwriters in their decision making, surfacing contextual decision support during the risk assessment and pricing process, assisting them to make better informed judgments and removing some of the characteristic unpredictability. Figure 1 Case underwriting premium calculation and integrated decision support Furthermore, by connecting case underwriters with pricing and analytics specialists and portfolio managers, Radar Workbench supports improved collaboration among the essential experts responsible for delivering the commercial underwriting performance. blind spots in risk appetite strategies, and new insights from external and internal data sources, as well as enable the means to challenge existing assumptions -- all of which provide improved opportunities for successfully delivering business performance objectives and enabling greater agility and evolution (Figure 1). Analytics for commercial underwriting applications Radar Workbench presents an opportunity at every stage of the underwriting risk assessment and pricing process to inject analytical decision support at an underwriter's fingertips. This starts with the quote submission and includes delivery of prioritization decision support, assisting case underwriters in organizing their busy schedules, and focusing their attention on those risks aligned to their appetite and objectives -- all the way through to presenting deal options at the final stages of the negotiation process. Analytical insights can be used to provide essential validation for underwriting instincts, opportunities to identify As commercial insurance moves rapidly on to a more digital footing, where active portfolio management and intelligent underwriting intervention are much more common. Radar Workbench creates a powerful user-customizable platform, with extensive automation capability, where your case underwriters, portfolio managers and pricing experts can collaborate at both case and portfolio level. Case underwriters Case underwriters are able to execute pricing and underwriting decisions confidently, supported with rich, contextual data insights. All data is connected to the transaction, including adjustments, rationales and risk features . Other commercial considerations are stored to the shared database. 56 willistowerswatson.com Radar Workbench features a single store of granular-level data.. This supports greater connectivity and collaboration between underwriters, pricing and analytics specialists, and portfolio managers. Each specialist has his or her own environment within Radar Workbench. This is designed to support individual requirements -- recognizing the differences in their roles while understanding their commonalities and the benefits of closer connection. Portfolio managers Pricing and underwriting portfolio performance can be analyzed to a granular level, remedial actions identified quickly and scenarios tested before being deployed seamlessly to underwriters via Radar Workbench. This functionality gives a high degree of confidence that the desired actions have been actioned swiftly, and implemented as expected, providing greater certainty of the expected outcome. Pricing and analytics specialists Underwriting rules and advanced pricing and analytics models can be built in a low-code environment, designed to provide the business user with improved flexibility and responsiveness to change, independent from centralized IT functions. Radar Workbench Improves expert transparency and collaboration via shared models and database Provides an intuitive underwriter user interface Provides a low-code modeling environment Improves agility and evolution, business users own change management Supports ambitious data strategies via shared database Improves efficiencies and reduces rekey with data integration Supports greater insights with external callouts Supports underwriting performance via contextual underwriter decision support Enables advanced pricing techniques improving sophistication Incorporates granular portfolio management and impact analysis tool Radar Workbench is the latest product in the Radar suite, building on existing foundations and capabilities in delivering insurancespecific technologies to commercial lines insurers. Willis Towers Watson is helping insurers to deliver improved business performance by streamlining processes and removing frictional costs, making better use of scarce data and underwriting resources, and achieving a more granular grip on portfolio performance. 57 Quarterly InsurTech Briefing Q2 2021 The Data Center The Data Center Global InsurTech activity reaches an all-time high, with Q2 2021 being the strongest on record, with funding amount surpassing Q1 2021 by 89% In Q2 2021, InsurTech companies raised US$4.8 billion across 162 deals -- a respective increase of 89% and 11% from Q2 2021. In the first half of 2021, InsurTechs have raised $7.4 billion surpassing the $7.1 billion raised for all of 2020 by more than $300 million. A major driver of funding growth was the rise in mega-rounds (rounds of $100 million plus). Q2 2021 recorded 15 funding rounds, up from eight in Q1 2021. The rounds represented nearly $3.3 billion or 67% of total funding, up 22% from Q1 2021. The 15 companies were wefox ($650 million Series C), Bought By Many ($350 million Series D), Collective Health ($280 million Series F), Extend ($260 million Series C), Alan ($223 million Series D), Shift Technology ($220 million Series D), Clearcover ($200 million Series D), Ethos Technologies ($200 million Series D), Yuanbao ($156 million Series C), The Zebra ($150 million Series D), SmartHR ($143 million Series D), PayMaya ($121 million Private Equity), EIS Group ($100 million Private Equity), Embroker ($100 million Series C) and Friday Health Plan ($100 million Private Equity). Q2 2021 overview This quarter, U.S. InsurTech deal share dropped to 38%, down 10 percentage points from Q1 2021. Geographic diversity among global InsurTechs continues to grow, with InsurTechs from 35 distinct countries securing investments, compared with 26 countries in Q1 2021. This is the most diverse quarter since we started recording. Botswana, Mali, Romania, Saudi Arabia and Turkey all recorded their first InsurTech investment. The share of early-stage deals decreased slightly to 57%, down from 58% in Q1 2021. Mid-stage deals were responsible for 23% of funding, an increase from 17% in Q1 2021. Ten percent of deals were later-stage deals, down from 11% in Q1 2021. These laterstage deals accounted for 46% of funding. Of the 15 mega-rounds, eight were U.S-based companies, two were France-based companies. The U.K., Germany, China, Japan and the Philippines all recorded one mega-round. L&H and P&C funding split trend continues Life & health (L&H) InsurTechs represented 27% of total deals this quarter, matching Q1 2021. Property & casualty (P&C) deals continue to receive the majority of InsurTech funding, with P&C deals receiving 71% of funding, up by two percentage points from Q1 2021. 75% of the mega-rounds were P&C-focused companies, matching Q1 2021. The L&H start-ups were responsible for 29% of the mega-round funding, up eight percentage points from Q1 2021. Distribution-focused companies dominate in dollar terms Business-to-business (B2B) start-ups secured 42% of the deals in Q2 2021 -- a seven-percentage-point decrease from Q1 2021. Distribution-focused start-ups received 55% of deals, up seven percentage points from Q1, and direct insurers were responsible for the remaining 3%. In funding amount terms, insurers were responsible for 8% of funding, a two-percentage-point drop from Q1 2021. B2B companies were responsible for 28%, a two-percentage-point increase from Q1; distribution-focused start-ups were responsible for 64% of funding, matching Q1 2021. For P&C investments in Q2 2021, 44% of deals were to B2Bfocused companies, 3% went to insurers and 54% went to distribution-focused companies. Compared with Q1 2021, this marks a six-percentage-point drop in B2B deals, a onepercentage-point drop in deals to insurers and a sevenpercentage-point increase in the number of deals to distributionfocused companies. For L&H deals in Q2 2021, 37% of deals were to B2B-focused companies, 5% went to insurers and 58% went to distributionfocused companies. From Q1 2021, this marks a ninepercentage-point decrease in B2B deals, a two-percentagepoint increase in deals to insurers, and a seven percentage-point increase in deals to distribution-focused companies. Q2 2021 recorded 28 deals over $40 million, a 56% increase from the previous record from last quarter 54% of the $40 million-plus deals were from U.S.-based companies an 18-percentage-point drop from Q1 2021. The U.K., China and France were responsible for 7% of the deals. The remaining deals were evenly spread across Chile, Germany, India, Japan, Malaysia, the Philippines and Romania. The 28 deals accounted for 81% of the quarter's total funding, an 11-percentage-point increase from Q1. The largest deal of the quarter was a $650 million Series C investment into wefox by Target Global, Horizons Ventures, Seedcamp, Jupiter Asset Management, Mountain Partners, LGT Group Stiftung, Victory Park Capital, EDBI, Eurazeo, G Squared, ACE & Company, Speedinvest, OMERS Ventures, Lightrock, Partners Group, Salesforce Ventures, Sound Ventures, Mundi Ventures, CreditEase Fintech Investment Fund, GR Capital, Mubadala Capital, Merian Chrysalis Investment Company, Decisive Ventures and FinTLV. wefox enables customers, insurance brokers and insurance providers to transact and manage insurance products digitally. wefox has now raised $924 million. The subsequent largest investment rounds were: A $350 million Series D investment in Bought By Many. Bought By Many uses data to develop insurance policies and negotiate discounts for users with unique insurance needs. Octopus Ventures, FTV Capital, EQT Partners, CommerzVentures, Munich Re Ventures and Willoughby Capital Management participated in the round. Bought By Many has now raised $477 million. A $280 million Series F investment in Collective Health, a technology company aiming to make health insurance work better for everyone. The round had participation from Health Care Service, New Enterprise Associates, Founders Fund, DFJ Growth Fund, Sun Life Financial, SoftBank Group, G Squared, PFM Health Sciences and Maverick Ventures. The company has now raised $714 million. Q2 2021 recorded 27 strategic tech investments by (re)insurers U.S.-based technology investment rose by 11 percentage points from Q1 2021 to 63% of all tech investments by (re)insurers. France received 15% of the deals; Singapore received 7%; and the remaining deals were split evenly between Australia, Switzerland and the U.K. Q2 2021 saw 22 (re)insurer partnerships, down four from Q1 2021 Select partnerships include: HSBC Life and dacadoo have announced a global partnership to help customers improve and maintain their physical, mental and financial wellbeing. AI-enabled insurance platform NOW has partnered with Hiscox on medical malpractice insurance policies for health care professionals on its direct-to-consumer marketplace. Farmers Insurance has partnered with SimpliSafe, a maker of home security systems, to make preventative smart home protection available to homeowners in Alabama, Iowa and Ohio. 60 willistowerswatson.com 61 Quarterly InsurTech Briefing Q2 2021 The Data Center InsurTech by the numbers Quarterly InsurTech funding volume all stages 5000 4824 4500 4000 3500 3000 2538 2552 2500 2000 1500 1865 1987 1258 1591 1443 1504 1414 1558 2100 1000 1000 825 633 725 592 912 422 500 135 180 132 180 376 300 412 233 271 328 314 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2014 2015 2016 2017 2018 2019 2020 2021 Deal count P&C 10 7 16 8 17 13 16 21 44 18 33 29 26 37 29 45 44 47 40 41 58 49 52 40 72 54 74 75 107 119 L&H 9 15 14 15 11 19 15 20 16 17 6 13 17 32 21 11 24 26 17 23 29 20 31 35 24 20 30 28 39 43 Quarterly InsurTech funding volume early stage 600 500 500 400 385 337 304 300 186 200 167 159 100 103 98 107 95 76 83 84 56 41 119 82 219 226 198 234 202 244 223 168 147 161 121 132 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2014 2015 2016 2017 2018 2019 2020 2021 Deal count P&C 5 3 10 6 13 7 9 16 35 9 25 21 18 25 21 25 32 31 22 25 36 27 35 20 35 25 42 34 69 71 L&H 6 8 11 8 5 9 11 16 6 10 3 10 11 20 13 7 15 20 11 15 20 12 19 16 14 6 17 14 18 22 62 willistowerswatson.com Quarterly InsurTech transactions by target country 2012 Q21 22002211 22% 3% 4% 4% 6% 9% United States United Kingdom China India Germany 51% France Other 2012 Q2 2021 Transactions: 1,993 Q1222002211 21% 2% 3% 3% 3% 3% 3% 3% 5% 7% 38% 9% United States United Kingdom China India Brazil France Israel Switzerland Germany Canada Australia Other Q2 2021 Transactions: 162 Quarterly InsurTech transactions by investment stage 2012 Q2 2021 145% 44%% 33%% 66%% 1133%% 2222%% 3378%% Seed/Angel Series A Series B Series C Series D Series E+ Other Q2 2021 15%9% 4% 7%7% 59%% 7% 146%% 1250%% 420% Seed/Angel Series A Series B Series C Series D Series E+ Other 2012 Q2 2021 Transactions: 1,993 Q2 2021 Transactions: 162 P&C InsurTech transactions by subsector 2012 Q2 2021 Q2 2021 L&H InsurTech transactions by subsector 2012 Q2 2021 Q2 2021 43% 51% 6% 54% 44% 2% Carrier B2B Distribution 2012 Q2 2021 P&C Transactions: 1,291 Q2 2021 P&C Transactions: 119 50% 42% 8% 58% 37% 5% Carrier B2B Distribution 2012 Q2 2021 L&H Transactions: 702 Q2 2021 L&H Transactions: 43 63 Quarterly InsurTech Briefing Q2 2021 The Data Center Q2 2021 InsurTech transactions P&C Date 4/1/2021 Company Aclaimant 4/1/2021 Kryon 4/2/2021 Qualia 4/5/2021 Lumnion Funding (US$M) Round Total Investor(s) 28.69 Aspen Capital Group BrokerTech Ventures EBSCO Capital KEC Ventures Mercury Fund Moderne Passport Next Coast Ventures Paycheck Protection Program RRE Ventures Royal Street Ventures 3.5 76.5 AJJS Holdings Aquiline Capital Partners Bank Hapoalim Fort Ross Ventures Oak HC/FT Partners Vertex Ventures Israel 40 200 8VC Barry Sternlicht Bienville Capital Clocktower Technology Ventures Formation8 Menlo Ventures Tiger Global Management Undisclosed Investors 0.56 0.56 Sabanci Holding Starters Hub 4/9/2021 Allegory Undisclosed Investors 4/12/2021 Penni.io 4/12/2021 Energetic Insurance 4/12/2021 The Zebra 4/13/2021 Clearcover Note: Blue font denotes current round investors. 6.73 8.91 Niels Mortensen Undisclosed Investors 2.5 6.95 Clocktower Technology Ventures Congruent Ventures DCU FinTech Innovation Center One Valley Powerhouse Powerhouse Ventures 150 255 Accel AlphaLab Ballast Point Ventures Birchmere Ventures Daher Capital Floodgate Hedosophia Mark Cuban Silverton Partners Simon Nixon Weatherford Capital Management 200 307 500Startups American Family Ventures Cox Enterprises Eldridge Greycroft Hyde Park Angels IA Capital Group Lightbank OMERS Ventures Silicon Valley Bank Undisclosed Investors Description Aclaimant develops a platform to engage the employee, employer and insurance carrier in making workplace incidents an equal responsibility. Kryon develops virtual agents, or bots, used to automate organizational processes such as paperwork and the filings of insurance claims. Qualia is a digital real estate closing technology company that provides the infrastructure to streamline the home closing experience. The company offers a suite of products that brings together buyers, sellers, lenders, title, escrow and real estate agents onto a secure, shared platform. Lumnion is an insurance technology company that develops risk pricing platforms based on artificial intelligence and machine learning for the insurance industry. Allegory provides auto insurance that is customized to individual consumer's driving habits. There is automatic tracking through its app that detects driving and calculates scores based on one's driving that determines premiums. Penni.io is a digital distribution solution. Penni.io provides a white-label distribution solution that helps insurers, brokers and distribution partners to establish online sales channels for insurance. Energetic Insurance offers EneRate Credit Cover, a trade credit insurance product to protect solar developers and asset owners against repayment risk in power purchase agreements. The Zebra is an online car insurance comparison marketplace. The Zebra also provides educational resources to inform consumers and help them find the coverage, service level and pricing to suit their unique needs, while simultaneously helping insurance companies connect with their consumers. Clearcover offers an app that provides fast claims, easy payments and a secure digital card. The company's API-first approach enables customers to have insurance at affordable rates. 64 willistowerswatson.com Q2 2021 InsurTech transactions P&C Date 4/14/2021 Company Small Ticket Funding (US$M) Round Total Investor(s) 0.02 Alticast Startupbootcamp FinTech 4/15/2021 Migrante 4/15/2021 GOCLEER 4/16/2021 Fatberry 2.5 2.5 Endeavor Scale Fintech Fen Ventures Kayyak Ventures Nazar Family Office Olivo Capital 1.12 1.34 Antai Venture Builder Enisa Undisclosed Angel Investors 0.61 0.61 Abelco Investment Group Fatfish Group Undisclosed Angel Investors 4/17/2021 Mutuus 4/19/2021 Arturo 4/19/2021 Ignatica 4/19/2021 insureQ 4/20/2021 Archipelago Analytics 4/20/2021 FintechOS 4/20/2021 Innoveo Solutions 0.27 0.27 Brazilian Development Bank The Helix Institute Undisclosed Venture Investors 25 33 American Family Insurance American Family Ventures Atlantic Bridge Capital Crosslink Capital Firemark Ventures Plug and Play Accelerator RPS Ventures 7 7 AFG Partners Artesian Capital Management Chinaccelerator Lingfeng Capital SOSV 6.01 6.01 Flash Ventures Global Founders Capital Nauta Capital 34 68.23 Canaan Partners Ignition Partners Scale Venture Partners XL Innovate Zigg Capital 60 75.92 Draper Esprit Earlybird Venture Capital GECAD Group Gap Minder LAUNCHub Ventures Microsoft ScaleUp OTB Ventures 15 15 Everstone Capital Pactera Technology International Paulson & Co. Servion Global Solutions 4/21/2021 Orca AI 13 15.6 IntelIgnite Lloyd's Lab MizMaa Ventures OCV Partners Playfair Capital Ray Carriers theDOCK Innovation Hub Note: Blue font denotes current round investors. Description Small Ticket is a p2p platform that distributes insurance products, using a system of connected groups and controlled risks. Migrante focuses on developing financial, credit and insurance products that address the main needs of the foreigner in Chile. The company enables Chile natives to rent an apartment, buy a vehicle, acquire a motorcycle and revalidate university studies. GOCLEER operates as a mobile auto insurance platform with a cash back program. Fatberry offers a comprehensive online marketplace for insurance. With the integration of API with multiple insurers, consumers can easily compare insurance products, customize a quote and purchase the most suitable insurance offering instantly at Fatberry. Mutuus operates as a digital insurance broker. Arturo is an artificial intelligence property analytics company that delivers structured data observations and predictions for residential and commercial properties for use in the property & casualty insurance, reinsurance, lending and securities markets. Ignatica empowers multinational, regional and digital insurers to define their future success with speed, agility and intelligence. By removing the product launch and policy administration burdens, Ignatica enables clients to create more niche and cost-effective products, shift their resources to acquiring new customers and make sure all their customers are satisfied. insureQ is a Munchen-based company that offers 100% digital protection tailored to a client's profession. It is a digital insurer for freelancers, start-ups and SMEs. Archipelago develops interconnected technologies to efficiently capture and move critical data through the insurance value chain, from client to broker to capacity provider. FintechOS offers a digital framework for financial organizations to engage in digital transformation. It specializes in developing and redesigning the Customer Experience in Banking and Insurance. Innoveo Solutions is a Swiss-based IT software product company. The company's front-end insurance multichannel sales solution, Innoveo Skye, enables insurance companies to launch new products and build attractive product and services bundles, reacting quickly to competitor offerings. The solution has been deployed globally and is helping customers in multiple regions to reduce time to market. Orca AI uses a combination of thermal cameras, low-light cameras, other sensors and AI to keep ship operators aware of nearby ships and alert them about potential danger. 65 Quarterly InsurTech Briefing Q2 2021 ThheeDDataatCaeCnternter Q2 2021 InsurTech transactions P&C Date 4/22/2021 Company Cherre 4/22/2021 OKO Finance 4/27/2021 Qover 4/27/2021 Sigo 4/28/2021 Wunderite 4/29/2021 AlphaDirect 4/30/2021 Attestiv 5/3/2021 Growers Edge Note: Blue font denotes current round investors. Funding (US$M) Round Total Investor(s) 50 75 Carthona Capital DreamIt Ventures Glilot Capital Partners Intel Capital Mark Schwartz Navitas Capital Red Swan Ventures Silicon Valley Bank Trustbridge Partners Zigg Capital iLOOKABOUT 1.2 1.2 Barclays Accelerator Fit 4 Start Google for Startups Accelerator Sustainable Development Goals ImpactAssets Mercy Corps New Fund Capital RaSa Future Fund ResiliAnce Techstars 25 39.93 Alven Capital Anthemis Cathay Innovation Portag3 Ventures Prime Ventures 1.5 1.73 Amicle Capital Bonded Capital Ventures Demeter Capital Financial Solutions Lab Park City Angels gANGELS gener8tor 3 3.05 Alex Finkelstein Andrew Krantz Boston Seed Capital Brian Hetherington BrokerTech Ventures Heffernan Financial Services John Wepler Scott Addis Spark Capital Trustco Ty Harris 0.6 0.6 Century Oak Capital Launch Africa Undisclosed Angel Investors 1.02 3.12 Borderless Capital Castle Island Ventures Mentors Fund Plug and Play Accelerator Plug and Play Ventures 53.68 Bunge Ventures Cox Enterprises Finistere Ventures Guide One Insurance Paycheck Protection Program S2G Ventures Silicon Valley Bank Skyline Global Partners The Nature Conservancy iSelect Fund Description Cherre provides investors, insurers, brokers and other large enterprises with a platform to collect, resolve and augment real estate data from thousands of public, private and internal sources. OKO Finance is an InsurTech company bringing crop insurance to emerging markets. OKO provides index insurance and other farming-related services to smallholder farmers in emerging countries. Using technologies to monitor rainfall and crop evolution, a direct interface with farmers, and a unique distribution network, OKO protects farmers and unlocks their access to financing. Qover is a B2B2C company that provides a suite of insurance products to companies, which companies can append to consumer-facing products. Qover provides cross-industry products and companies that generate extra revenue by offering the insurance product to consumers at the point of sale. Sigo develops a mobile-first auto insurance platform allowing customers with limited insurance histories to get basic liability policies directly from their phones in English or Spanish. Wunderite provides an online platform that automates insurance applications. It collects data to provide transparency to stakeholders and actionable insight to decision-makers. AlphaDirect offers value-for-money business and personal insurance products directly to customers. Attestiv validates the authenticity of photos and videos from the point of capture to any time thereafter with inline validation. Growers Edge uses data science, public and private data sets, and deep learning algorithms to design warrantybacked crop management plans for agricultural retailers and technology providers. 66 willistowerswatson.com Q2 2021 InsurTech transactions P&C Date 5/3/2021 Company SympliFi Funding (US$M) Round Total Investor(s) 0.12 0.12 Catapult: Inclusion Africa Techstars Berlin Accelerator 5/5/2021 Protect4Less 1 1 Undisclosed Private Equity Investors 5/5/2021 Lami 5/5/2021 Relay Platform 5/5/2021 Sprout.ai 5/6/2021 180 Insurance 5/6/2021 AuditCover 1.8 1.91 AAIC Ventures Accion Venture Lab Acuity Ventures Catalyst Fund Consonance Capital Future Africa P1 Ventures The Continent Venture Partners 5.2 7.44 American Family Insurance Drive Capital Global Insurance Accelerator Highline BETA InsurTech NY NFP Ventures Plug and Play Accelerator Plug and Play Ventures 11.13 14.38 Alan Armitage Amadeus Capital Partners MetLife Digital Accelerator Ninety Consulting Octopus Ventures Playfair Capital Pragmatica Techstars Toby Clarke 8.32 8.32 Canary VC Dragoneer Investment Group Rainfall Ventures InsurTech Gateway Australia 5/6/2021 Shift Technology 5/6/2021 5/7/2021 Wobi Sustema 220 320 Accel Advent International Avenir Growth Capital Bessemer Venture Partners Elaia Partners General Catalyst Iris Capital Paris & Co Plug and Play Accelerator Clal Insurance Lloyd's Lab Swiss ICT Investor Club 5/10/2021 ZYYAH Undisclosed Investors Note: Blue font denotes current round investors. Description SympliFi provides an online financial platform for workers outside of their home countries. It allows for borderless credit, insurance and savings services. Protect4Less (P4L) is a provider of device protection insurance plans for mobile phones, laptops and other accessories. Lami operates an insurance API that enables businesses to automate underwriting, reduce claim ratios and improve profitability. Relay is a reinsurance collaboration platform that helps carriers better manage and place reinsurance. Relay accelerates the placement process, eliminates redundant efforts, and alerts users to the latest placement opportunities and trends. Sprout.ai provides fraud detection and claims automation for the insurance industry through its platform. 180 Insurance is a Brazilian insurance company. It operates through a B2B2C model, providing a solution for companies to be able to sell insurance and assistance products digitally. AuditCover operates as a fully digitized insurance product that protects accounting firms, financial planners, advisors, service providers (intermediaries) and their clients from the hefty expenses that come with being audited. Shift Technology delivers AI-native decision automation and optimization solutions built specifically for the global insurance industry. Addressing several critical processes across the insurance policy life cycle, the Shift Insurance Suite helps insurers achieve faster, more accurate claims and policy resolutions. Wobi is a digital insurance agency that shows offers and loans in one place. Sustema is a Zurich-based insurance analytics firm that is empowering commercial insurers to transform their underwriting performance through its behavioral analytics service. The company develops a tool to analyze publicly available data of listed companies and apply behavioral analytics to improve underwriting performance. ZYYAH offers a simple and smart digital home management platform that guides users through insurance, maintenance, home documents and contractors for their projects. 67 Quarterly InsurTech Briefing Q2 2021 ThheeDDataatCaeCnternter Q2 2021 InsurTech transactions P&C Date 5/10/2021 Company Yuanbao 5/11/2021 Artivatic 5/11/2021 Calingo 5/11/2021 Airkit 5/11/2021 Pouch Funding (US$M) Round Total Investor(s) 156 156 Cathay Capital Private Equity Hike Capital Northern Light Venture Capital Qiming Venture Partners SIG Asia Investments Source Code Capital 0.17 Deepak Verma Google for Startups Accelerator Indian Angel Network Kfintech Max Life Innovation Labs Nasscom DeepTech Club Pitney Bowes Accelerator Rahul Sood Saurabh Chugh Scale Ventures Spark10 0.92 0.92 Swiss ICT Investor Club UNIQA Liechtenstein Undisclosed Venture Investors 40 68 Accel EQT Ventures Emergence Capital Partners Plug and Play Accelerator Salesforce Ventures Undisclosed Investors ILS Capital Management 5/11/2021 Shield Finance 5/12/2021 CLC Network 0.78 0.78 DAO Maker GD10 Ventures Master Ventures NGC Ventures PAID Network Spark Digital Capital Titan Ventures Zokyo 9 9 Gravitas Securities 5/12/2021 Leap 1.3 Accelerant Paycheck Protection Program 5/12/2021 Planck 5/13/2021 Dayu Tech Note: Blue font denotes current round investors. 20 48 3L Arbor Ventures Eight Roads Ventures Greenfield Partners Hannover Digital Investments Nationwide Ventures Plug and Play Accelerator Team8 Capital Viola Group Viola Ventures 7.69 Haowangjiao Investment Kangqiao Group Ningbo Shuanglang Xiaomi Zhejiang Silicon Paradise Asset Management Group Description Yuanbao is an online insurance intermediary on the internet. After premiums are generated through the platform, commissions from insurance companies are the company's main income. Artivatic builds product solutions and systems using AI, IoT and data for insurance, finance, banking and healthcare businesses. The company enables businesses to have in-depth multi-source data-focused products on consumer risk profiling, credit risk scoring, recommendation and personalization, automated underwriting and decisions, health and disease prediction, claims processing, fraud detection, digital data-based risk scoring and document digitization. The company's product line includes AVGenomics, AVAcross, AVPredict and AVDecision. Calingo is a digital insurance company that offers personalized insurance coverage at the point of sale in a hassle-free way. Airkit is a low-code customer experience automation platform that integrates with the organization's business system and allows employees without a coding background to manage customer interactions, including scheduling, payments and loyalty programs. Pouch rewards small businesses for safe driving. With instant quotes, simple sign up and discounted rates based on a user's actual driving, Pouch offers a faster and smarter way to buy commercial auto insurance. Shield Finance is a multi-chain DeFi insurance aggregator allowing users to buy protection against major market crashes. CLC Network is a Canadian-based, data-driven mortgage insurance company focusing on both the long-term success of brokers and the overall experience of the homeowner. Leap is a proptech company providing rent guaranty insurance to student housing and multifamily landlords nationwide. Leap acts as a co-signer for students, young professionals and others who need help in qualifying for the apartment they want. Leap's demographic is young: 85% of applicants apply, sign and pay via mobile. Planck is a commercial insurance data platform, built to enable insurers to instantly and accurately underwrite any business. Planck's technology platform aggregates and mines large data sets, using advances in artificial intelligence (AI) to automatically generate and deliver key insights customized to the commercial underwriting process. The end result is an underwriting process with greater insurer visibility into risk factors, leading to improved new business conversion and retention rates and lower loss ratios. Dayu Tech provides car insurance analysis and consulting services. 68 willistowerswatson.com Q2 2021 InsurTech transactions P&C Date 5/13/2021 Company Upsie 5/17/2021 Bank Sathi 5/17/2021 Jerry 5/17/2021 Wrisk Note: Blue font denotes current round investors. Funding (US$M) Round Total Investor(s) 18.2 27.2 Anton Vincent Avanta Ventures Awesome People Ventures Backstage Capital Bread & Butter Ventures Concrete Rose Capital Damon DeVito Daren Cotter Diverse Angels Draft Ventures George Azih Gopher Angels Imagination Capital Jim D'Aquila Jon Rezneck Kapor Capital Lottie Rezneck M25 Marc Belton Mark Addicks Massive Fund Matchstick Ventures Ordinary Ventures Richard Parsonson Samsung NEXT Silicon Valley Bank Sri Pangulur Techstars Techstars Ventures The Syndicate Fund True Ventures Uncommon Ventures Village Capital 0.2 0.2 Aditya Talwar Anuj Ahuja Dinesh Godara Rajendra Lora 28 28 Bow Ventures Brandon Krieg Dan Bragiel Ed Robinson Funders Club Goodwater Capital Immad Akhund Jay Vijayan Johnson Cook Jon McNeil Josh Buckley Liquid 2 Ventures Oriza Ventures Paul Bragiel Plug and Play Ventures SV Angel Timothy Sheehan Y Combinator Zillionize Angel 6.49 13.8 BMW Innovation Lab Cell Rising Financial Conduct Authority Guinness Asset Management Hiscox Holdings Oxford Capital Partners QBN Capital Queensland Investment Corporation Seedrs Startup Grind Description Upsie is a website and mobile app that offers affordable, reliable warranties for all electronic devices without the markup. Bank Sathi aims to promote the role of financial advisors in decision making, while buying retail Loans, credit cards and Insurance products, via its BankSathi Advisors App. Jerry takes shopping and comparing quotes from all major insurance companies, reminding users of renewals, completing required paperwork to switch policies and everything in between. Wrisk is a usage-based contents insurance product with a proprietary risk scoring method. 69 Quarterly InsurTech Briefing Q2 2021 ThheeDDataatCaeCnternter Q2 2021 InsurTech transactions P&C Date 5/18/2021 Company Extend 5/19/2021 iink Funding (US$M) Round Total Investor(s) 260 367.1 10X Capital 40 North Bay Capital Erik Torenberg GreatPoint Ventures Jason Robins Launchpad Capital Lightbank Meritech Capital Partners Michael Marks Nationwide Mutual Insurance Company PayPal Ventures Paycheck Protection Program Pritzker Group Venture Capital Rick Smith Shah Capital Partners SoftBank Group Tomales Bay Capital Undisclosed Investors 0.9 0.9 Motivate Ventures Undisclosed Investors 5/19/2021 Roofr 5/20/2021 Boost Insurance 5/20/2021 Odie 5/21/2021 Finanzchef24 5/21/2021 Finology Note: Blue font denotes current round investors. 4.25 8.37 ACE & Company Avidbank Holdings Bullpen Capital Crosslink Capital Louis Beryl Y Combinator 20 37 Coatue Management Conversion Capital FinVC Gaingels Glenn Hubbard Greycroft Hack VC IA Capital Group Markel Nephila Capital Norwest Venture Partners RRE Ventures State National Companies Tusk Ventures 3 3 Slow Ventures Undisclosed Angel Investors Undisclosed Investors Walkabout Ventures 12.73 Grenke Bank HW Capital Markel Ventures Mercura Capital Target Partners 0.5 0.5 Seedstars Seedstars World Description Extend provides an easy way for any merchant to offer extended warranties, generating revenue, increasing purchase conversion and dramatically improving the customer experience. iink provides fast and easy access to property insurance payments for restoration professionals. iink's platform automates the homeowner's claims and endorsements through a management platform. Through key partnerships with insurance, mortgage and technology experts, iink creates a seamless experience for homeowners and contractors. iink is continually adding and expanding banking partnerships to reach more customers. Roofr is a platform that connects homeowners, insurance companies and property managers looking for roof replacement to vetted, local roofing contractors. Its platform simplifies the roof replacement process while saving its clients and roofing contractors time and money. Roofr utilizes satellite imagery to measure roofs and provide clients with instant, free estimates. Boost Insurance focuses on distribution and productfocused InsurTech start-ups and provides access to an API-driven platform that provides modern insurance data exchange for InsurTech start-ups. Odie offers monthly pet insurance and wellness plans for cats and dog. Finanzchef24 is a small business insurance comparison portal and Finanzchef PRO for insurance brokers. The www.finanzchef24.de portal offers small businesses and self-employed operators a free service for comparing insurance options and a way to sign up online for the policy tailored to the customer's needs. Finology is a Malaysian fintech company primarily serving clients in banking, insurance and property industries. It enables the seamless distribution of credit and insurance products anywhere with technology. 70 willistowerswatson.com Q2 2021 InsurTech transactions P&C Date 5/24/2021 Company BREACH 5/24/2021 Mile Auto 5/25/2021 Sigo 5/26/2021 Corvus Insurance Agency 5/26/2021 Eltizam Funding (US$M) Round Total Investor(s) 2.5 2.5 Global Founders Capital Goodwater Capital Plug and Play Accelerator Ted Rogers Thomas Bailey 10.3 11.55 Bridge Community Emergent Ventures Paycheck Protection Program Sure Ventures Thornton Capital Ulu Ventures 0.13 1.73 Amicle Capital Bonded Capital Ventures Demeter Capital Financial Solutions Lab Park City Angels gANGELS gener8tor 15 161 .406Ventures Aquiline Capital Partners Bain Capital Ventures FinTLV Hudson Structured Capital Management Insight Partners Obvious Ventures TelstraVentures 0.67 0.67 Scopeer 5/26/2021 Obie 5/26/2021 Parametrix 10.7 13.7 Battery Ventures FundersClub Innovation Fund America Liquid2Ventures MetaProp NARREACH Second Century Ventures Soma Capital Thomvest Ventures Y Combinator 17.5 17.5 F2 Capital F2 Ventures FirstMark Capital Lloyd's Lab Plug and Play Accelerator 5/27/2021 Kanopi 3.1 5/27/2021 Justos 2.8 5/27/2021 Smart Contract Initiative Note: Blue font denotes current round investors. 3.86 Folklore Ventures Hollard Investments Paul Hunyor Undisclosed Investors 2.8 Assaf Wand Big Bets Carlos Garcia Ottati David Velez Fritz Lanman Kaszek Ventures Patrick Sigrist Sergio Furio Undisclosed Angel Investors IRRC Corporation Description BREACH develops, underwrites and distributes insurance solutions for the nascent and complex digital asset marketplace. Mile Auto is an insurance provider that only charges you for the miles you drive. Sigo develops a mobile-first auto insurance platform allowing customers with limited insurance histories to get basic liability policies directly from their phones in English or Spanish. Corvus Insurance Agency provides software solutions. The company offers insurance software applications for commercial insurance brokers and buyers. Eltizam is a Saudi Arabia-based insurance as a service (IaaS) platform. Obie connects commercial real estate brokers, investors, offering materials, transaction documents and analytical tools all in one place. The Obie collaborative environment is the most efficient way to streamline the transaction process while utilizing mobilized technology. Parametrix creates business interruption insurance for IT downtime events, such as cloud outages, e-commerce downtime, payment failures and other third-party disruptions. By leveraging the parametric model, accurate risk analysis and robust data sets, the company enables immediate payment after the downtime event, allowing its customers to hedge their external technological risks and maintain true business continuity. Kanopi is a data-driven InsurTech company that connects insurers and digital platforms so they can provide the right insurance to their customers. As an embedded insurance platform, Kanopi anticipates consumer needs to provide them with insurance within minutes, whenever and wherever they need it. Justos is a Brazilian insurance company utilizing drivers' data to reward those who drive conscientiously by offering fairer prices. Smart Contract Initiative is building an automatic payment platform for insurance claims and benefits. 71 Quarterly InsurTech Briefing Q2 2021 ThheeDDataatCaeCnternter Q2 2021 InsurTech transactions P&C Date 6/1/2021 Company Bought By Many 6/1/2021 Novidea 6/1/2021 Rikkei Finance 6/1/2021 wefox Note: Blue font denotes current round investors. Funding (US$M) Round Total Investor(s) 350 477 CommerzVentures Crispin Odey EQT Partners Evelyn Bourke FTV Capital Munich Re Ventures Octopus Ventures Willoughby Capital Management 15 30 2B Angels Israel Growth Partners JAL Ventures KT Squared Salesforce Ventures 5.6 5.6 Ark Stream Capital Coin98 Finance Hyperchain Capital Inclusion Capital Kernel Ventures Kyber Network Kyros Ventures LD Capital PNYX Ventures Signum Capital Tomo Chain Trade Coin Vietnam X21 YBB foundation 650 924 ACE & Company AngelList Credit Ease Fintech Investment Fund Davidson Technology Growth Debt Decisive Ventures EDBI Eurazeo FinTLV GR Capital G Squared Global Tech Ventures Goldman Sachs Harbert European Growth Capital Horizons Ventures ID Invest Partners Jupiter Asset Management LGT Group Stiftung Lena Meyer-Landrut Lightrock Merian Chrysalis Investment Company Mountain Partners Mubadala Capital Mubadala Ventures Mundi Lab Mundi Ventures OMERS Ventures Partners Group SBI Investment Salesforce Ventures Samsung Catalyst Samuel Skoblo Seedcamp Sound Ventures Speedinvest Target Global Victory Park Capital Description Bought By Many uses data to develop insurance policies and negotiate discounts for users with unique insurance needs. Novidea is a data-driven platform provider for the insurance industry. Novidea's end-to-end platform provides real-time business intelligence and seamless workflow management for brokers, agents, MGAs, bancassurance and corporate risk management. Rikkei Finance is using decentralized technology to improve ideas like money lending, credit and even insurance. Its platform uses blockchain tech that enables cross-chain integration, which makes it possible to accept digital assets that operate on any blockchain network and render it at an equivalent rate, making it a real-time currency exchange network as well. wefox enables customers, insurance brokers and insurance providers to transact and manage insurance products digitally. 72 willistowerswatson.com Q2 2021 InsurTech transactions P&C Date 6/2/2021 Company Riskwolf 6/2/2021 Spruce Holdings 6/3/2021 Baibaojun 6/3/2021 Moonrock Insurance 6/3/2021 One Concern 6/4/2021 Trellis 6/4/2021 Urban Jungle 6/7/2021 ELEMENT Insurance Note: Blue font denotes current round investors. Funding (US$M) Round Total Investor(s) 0.75 0.75 F10 FinTech Incubator & Accelerator Plug and Play Accelerator Swiss ICT Investor Club Undisclosed Investors 60 109 Bessemer Venture Partners Boris Khentov Collab+Currency Joe Ziemer Jon Stein Mike Reust Munich Re Ventures Omidyar Network Scale Venture Partners Third Prime Capital Zigg Capital Panda Capital Qingchenglu Capital Qingyuanshu Capital Volcanics Venture ZhongAn Technology 1.39 1.39 Andrew Hillier Paul Cousins Philip Oldcorn Richard Bryant Russell Kilpatrick 45 132 American Family Institute David Petraeus Geodesic Capital New Enterprise Associates Pear VC Ron Conway Sompo Holdings Sozo Ventures 10 10 General Catalyst Nyca Partners QED Investors 11.33 21.35 Eka Ventures Mundi Ventures Rob Devey Simon Rogerson Tech Nation Fintech 19.5 57.64 Berlin Dental Association Pension Fund Engel & Volkers Capital FinLeap Global Brain Corporation Ilavska Vuillermoz Capital MS&AD Ventures Mundi Ventures SBI Investment SBI Life Insurance Signal Iduna Signals Venture Capital Sony Financial Ventures Undisclosed Investors Versorgungswerk der Zahnarztekammer Berlin Witan Investment Trust plc Description Riskwolf enables re-insurers to simulate, test, launch and operate high-frequency parametric insurance products for individuals and SMEs cheaper and faster. Spruce is built from the ground up to help make real estate transactions fast, frictionless and secure. The company provides title and settlement services that empower lenders to efficiently close loans and deliver excellent customer experience. Baibaojun was incubated by ZhongAn Technology and positioned as an InsurTech platform for search engine services. Moonrock Insurance offers insurance policies. One Concern is a resilience-as-a-service solution that brings disaster science together with machine learning for better decision making. With operations in the U.S. and Japan, the company quantifies resilience from catastrophic perils, empowering leaders to measure, mitigate and monetize risk so disasters aren't so disastrous. Trellis develops an API that allows policyholders to manage their auto insurance. The company is located in San Francisco, California. Urban Jungle is a tech-first insurance broker helping young people get access to cheaper and better-suited home insurance. ELEMENT is a B2B2X tech company with a license of the German Federal Financial Supervisory Authority (BaFin). It is a fully digital risk carrier offering private property & casualty insurance that enables a large portfolio of retail protection products through various partners. 73 Quarterly InsurTech Briefing Q2 2021 ThheeDDataatCaeCnternter Q2 2021 InsurTech transactions P&C Date 6/8/2021 6/8/2021 6/9/2021 Company Certificial UpGuard 88i Seguradora Digital Funding (US$M) Round Total Investor(s) 5.8 5.8 Cameron Ventures Cofounders Capital FinVenture Capital IA Capital Group Nationwide Ventures 19 47.11 500 Startups Alan Jones Anthony Marcar August Capital Bruce Graham Firemark Ventures Insurance Australia Group Larry Marshall Mark Jung Matt Dickinson Paycheck Protection Program Pelion Venture Partners Scott Petry Square Peg Capital Starfish Ventures Starmate Startmate Valar Ventures 0.28 0.28 Dash Investment Foundation 6/9/2021 anipos 1.01 1.01 DG Ventures GLOBIS Hiroshima Venture Capital Kensuke Naito Monex Ventures Yamaguchi Capital 6/9/2021 Branch 50 74 Acrew Capital American Family Ventures Anthemis Elefund Foundation Capital Greycroft Hudson Structured Capital Management Revolution Rise Of The Rest Seed Fund SCOR P&C Ventures SignalFire Stone Point Capital Tower IV 6/9/2021 Embroker 100 144 500Startups Bee Partners Canaan Partners Clocktower Technology Ventures FTV Capital FinTech Collective Gaingels Hudson Structured Capital Management Manulife Capital Manulife Financial MassMutual Ventures Nyca Partners Paycheck Protection Program Silicon Valley Bank Tola Capital Vertical Venture Partners XL Innovate Note: Blue font denotes current round investors. Description Certificial is a real-time, intelligent insurance verification and monitoring platform designed to simplify the supplier management and certificate issuance processes by providing businesses with dynamic ACORD certificates of insurance. UpGuard is the company behind CSTAR, a comprehensive and actionable cybersecurity preparedness score for enterprises. The score allows businesses to understand the risk of breaches and unplanned outages due to misconfigurations and software vulnerabilities. It also offers insurance carriers a new standard by which to effectively assess client risk and compliance profiles. 88i Seguradora Digital is an InsurTech company that utilizes a blockchain-based business model to make insurance cheaper, simpler, more practical, and faster to buy and sell. anipos is a mobile platform that allows pet owners to file pet insurance claims simply by uploading a receipt. Pet owners can also donate to animal welfare organizations every time they file a claim. Branch provides bundled home and auto insurance. With only two questions, Branch can provide a bindable price to a client looking to bundle within seconds. Embroker is a digital insurance company that builds, underwrites and distributes commercial lines directly to insurance buyers for small and mid-sized enterprises. 74 willistowerswatson.com Q2 2021 InsurTech transactions P&C Date 6/9/2021 Company Targa Telematics 6/10/2021 Hokodo 6/10/2021 Lassie 6/11/2021 Huichongbao 6/15/2021 FinTell 6/16/2021 handdii 6/16/2021 Honey Insurance 6/16/2021 Insurama Note: Blue font denotes current round investors. Funding (US$M) Round Total Investor(s) InvestIndustrial 12.5 16.91 Anthemis Horizon2020 Max Bittner Mosaic Ventures Notion Capital Rich Laxer Taavet Hinrikus Thijn Lamers 0.61 0.61 Åsa Riisberg Indra Sharma Josefin Landgård Rikard Josefson Stefan Lindeberg Susanna Campbell Tobias Meschke K2VC 10 China Growth Capital Sequoia Capital China Telstra Ventures Youshan Capital 3 4.04 Brick & Mortar Ventures Charles Robinson Fifty-Second Celebration Greenlight ReInnovations Hartford InsurTech Hub Nine Four Ventures Scale Investors 11.9 11.9 ABN Group AGL Anthony Eisen Apex Capital Graham Mirabito Jamie McPhee Larry Diamond Metricon Mirvac Real Estate Peter Tonagh Property Exchange Australia Royal Automobile Club of Queensland Shadforth Financial Group Tim Fung 6 6 Inveready Description Targa Telematics provides smart mobility solutions and telematics systems and services. The company offers IoT solutions, smart mobility, asset management, fleet management and insurance. Hokodo develops insurance and financing solutions for B2B marketplaces, cloud accounting and e-invoicing platforms, allowing them to offer protection and financing to customers. Lassie is a provider of health insurance for pets. Huichongbao is a pet medical insurance service provider, committed to establishing a standardized process for pet medical care, establishing a stable "payer + service provider + producer" pet medical insurance model, and providing pet owners with professional and preferred pet medical insurance and online consultation services. FinTell provides big data risk management products and solutions to financial institutions and service providers in the financial industry. Clients include licensed consumer lending institutions, banks, internet financial services enterprises, collection agencies, insurance companies and rating agencies. handdii, based in Australia, is a digital platform that automates the property insurance claim process from FNOL through to claim finalization. Honey Insurance is a smart home insurance company designed for modern life. Honey offers homeowners, renters and landlords insurance powered by technology. Insurama offers insurance solutions that are adapted to the specific needs of each client using disruptive technology to create a new way of relating to insurance. This allows the company to get closer to clients by creating an omnichannel service tailored to them. 75 Quarterly InsurTech Briefing Q2 2021 ThheeDDataatCaeCnternter Q2 2021 InsurTech transactions P&C Date 6/16/2021 Company Tractable 6/17/2021 Akur8 6/17/2021 6/18/2021 Baigebao Hellas Direct 6/18/2021 RenewBuy 6/21/2021 Shannon.AI 6/22/2021 Cyberangels 6/22/2021 Denim Social 6/22/2021 Honeycomb 6/23/2021 6/23/2021 Hoggo RoadHow 6/24/2021 House of Insurtech 6/25/2021 Guros Note: Blue font denotes current round investors. Funding (US$M) Round Total Investor(s) Description 60 120 Andy Homer Entrepreneur First Georgian Partners Greg Gladwell Ignition Partners Insight Partners Scott Roza Stuart Bartlett Tony Emms Zetta Venture Partners Tractable develops AI for accident and disaster recovery. Its AI solutions use photos to automate damage appraisal, allowing insurers to improve accuracy, reduce turnaround time and deliver a revamped customer claims experience. 30 39 BlackFin Capital Partners Kamet MTech Capital Plug and Play Accelerator Akur8 is an AI pricing tool that helps insurers make predictions based on historical data. New Hope Group Baigebao is an Internet insurance technology and product solution provider. 26.1 46.6 Endeavor Hellas Direct is a digital-first, full-stack insurance European Bank for Reconstruction and Development (EBRD) company, empowered by cutting-edge technology and the use of advanced analytics. International Finance Corporation Jim O'Neill Jon Moulton Lord O'Neill Family Office Perscitus Advisers Portag3 Ventures Third Point 45 74.2 Amicus Capital Partners Apis Partners IIFL AMC Lok Capital Mount Nathan Advisors RenewBuy is an online platform for auto insurance that is powered by proprietary technology whose algorithm seeks to find the lowest premiums across insurers and shows customized results. 15.8 Microsoft for Startups China Sequoia Capital China Tencent Holdings Shannon.AI develops a platform that extracts structured information from massive unstructured data, providing automated text retrieval services, corporate credit risk monitoring services, financial information retrieval and Q&A services to banks, insurance companies, funds, securities company, bond rating agencies and large capital groups. 0.32 0.32 Undisclosed Investors Cyberangels is a cyber insurance platform for micro and small businesses to manage and mitigate IT risks and related damages. 1.82 6.07 Hermann Companies iSelect Fund Paycheck Protection Program Undisclosed Investors Denim Social provides social media management and marketing automation software for customers in banking, insurance, mortgage and wealth management. 3.3 3.3 IT-Farm Corporation NFP Ventures New Era Capital Phoenix Insurance Company Plug and Play Accelerator Honeycomb is a reinsurance-backed MGA providing simple, fair and affordable multi-family property insurance through its end-to-end digital platform. 13.2 15.8 Global Founders Capital Partech Partners Hoggo is a digital insurance brokerage platform. 0.7 0.7 Midven RoadHow is a U.K. based tech company that offers driver risk management and a learning platform in the marketplace. 0.56 0.56 SFC Capital Undisclosed Angel Investors House of Insurtech provides InsurForce, a modern Quote and Buy and Policy Administration system that helps digital transformation in Insurers, Brokers and MGAs. The platform features a flexible and responsive web app built on top of a rating and underwriting API. 4.6 5.8 Clocktower Technology Ventures Guros is a digital insurance platform, offering to simplify F-Prime Capital quoting and comparing auto, motorcycle or buying LEAP Global Partners Magma Partners insurance. It provides options to contract insurance online and renew or cancel it without having to register or talk to anyone. It is based in Mexico City, Mexico. 76 willistowerswatson.com Q2 2021 InsurTech transactions P&C Date 6/28/2021 Company Nayms 6/28/2021 PayMaya 6/29/2021 EIS Group Funding (US$M) Round Total Investor(s) 5.97 8.14 Cadenza Ventures Coinbase Ventures Digital Finance Group LD Capital Maven 11 Capital NadiFin Sean Harper Spartan Ventures Woodstock Fund XBTO Ventures 121 503 IFC Asset Management Company International Finance Corporation KKR Philippine Long Distance Telephone Company Tencent Holdings 100 152 TPG Capital 6/29/2021 FutureProof 6/29/2021 Home365 6/29/2021 Pathpoint 6/29/2021 Extend 6/30/2021 Baibaojun 6/30/2021 Hyperexponential Note: Blue font denotes current round investors. 3 3 Blackhorn Ventures Innovation Endeavors MS&AD Ventures 16.3 16.3 Eyal Ofer Greensoil PropTech Ventures Lool Ventures North First Ventures O.G.Tech Verizon Ventures 30 36 Caffeinated Capital Chubb Founders Fund Hiscox Holdings SciFi VC Undisclosed Investors 50 367.1 10XCapital 40 North Bay Capital Erik Torenberg Great Point Ventures Jason Robins Launchpad Capital Lightbank Meritech Capital Partners Michael Marks Nationwide Mutual Insurance Company Pay Pal Ventures Paycheck Protection Program Pritzker Group Venture Capital Rick Smith Shah Capital Partners SoftBank Group Tomales Bay Capital Undisclosed Investors Panda Capital Qingchenglu Capital Qingyuanshu Capital Volcanics Venture ZhongAn Technology 18 18 Highland Europe Lloyd's Lab Description Nayms offers a smart contract platform for the placement, trade, reporting and settlement of insurance risk. PayMaya is a digital financial solution that empowers consumers and businesses, providing payment solutions for all e-commerce needs. EIS is an insurance software company that enables insurers to operate like a tech company: fast, simple, agile. EIS provides a platform for high-velocity insurance. This open, flexible platform of core systems and digital solutions liberates insurers to launch products faster, deliver new revenue channels and create insurance experiences. FutureProof develops a platform for insurers, banks, real estate investors and asset managers that provides climate risk insights on properties and companies globally. Home365 is a hybrid InsurTech and property management company. Pathpoint is a provider of software solutions to help brokerages and carriers digital transact excess and surplus risk. Extend provides an easy way for any merchant to offer extended warranties, generating revenue, increasing purchase conversion and dramatically improving the customer experience. Baibaojun was incubated by ZhongAn Technology and positioned as an InsurTech platform for search engine services. Hyperexponential develops pricing software for speciality insurance. 77 Quarterly InsurTech Briefing Q2 2021 ThheeDDataatCaeCnternter Q2 2021 InsurTech transactions L&H Date 4/1/2021 4/12/2021 Company Friday Health Plans Baozhunniu Funding (US$M) Round Total Investor(s) 100 241 Colorado Impact Fund Eduardo Cruz Leadenhall Capital Peloton Equity Vestar Capital Partners 18.5 Ally Capital China Merchants Venture Denise Peng Huazhi Capital Marathon Venture Partners Matrix Partners China NNFE Zhongguancun Development Group 4/12/2021 Mutumutu 1.31 4/13/2021 Vericred 23 4/14/2021 Gradient AI 20 4/14/2021 Nova Benefits 1 4/16/2021 Level 27 Note: Blue font denotes current round investors. 2.61 Plug and Play Accelerator Societe Generale Assurances Societe Generale Group 34.7 Aquiline Capital Partners Echo Health Ventures FCA Venture Partners First Health Capital Partners Guardian Strategic Ventures MassMutual Ventures Paycheck Protection Program Riverside Acceleration Capital 31 American Family Ventures BSC Capital Partners Forte Ventures InsurTech NY MassMutual Ventures Plug and Play Accelerator Sandbox Insurtech Ventures Stan Smith Stone Point Capital 1 Ashish Goyal Better Capital Multiply Ventures Sumit Maniyar Titan Capital 27 First Round Capital Homebrew Khosla Ventures Lightspeed Venture Partners Operator Collective Undisclosed Angel Investors Description Friday Health Plans focuses on overall simplicity to offer low prices so more people can afford health insurance. Baozhunniu is an insurance customization platform based on data technology. The company reforms insurance business with the help of technology and delves risk of demand from enterprises and individuals. It uses advanced internet technology and big data risk management to customize the new insurance product and the service system that are professional, creative and low-cost, to help clients transfer risk and add value. Baozhunniu was established to help insurance businesses drive change through the delivery of technology-enabled solutions. Mutumutu is a start-up from Czech Republic that develops a lifestyle-based platform for behavioral life insurance. Vericred simplifies the exchange of data between carriers and technology companies that are transforming the way health insurance and employee benefits are quoted, sold, enrolled and managed. Vericred offers solutions for technology platforms and carriers focused on the employer market, as well as the under 65 individual, Medicaid, and Medicare markets. Gradient AI seeks to address the need for artificial intelligence (AI) and machine learning (ML) solutions designed specifically for the insurance industry. The company's solutions include software and models utilized by recognized insurance carriers, MGAs, TPAs, Pools and more. Gradient's artificial intelligence helps commercial insurers automate and improve underwriting results, reduce claim costs and improve operational efficiencies. Nova Benefits is a corporate health insurance platform. Level helps small and midsize businesses take more control over their dental benefits spending by transitioning to a self-funded model supported by a platform offering a more consumer-friendly experience through technology. Q2 2021 InsurTech transactions L&H Date 4/19/2021 Company Alan 4/22/2021 Brella 4/27/2021 Lima Technology 4/27/2021 Everyday Life Insurance 4/28/2021 Avibra Funding (US$M) Round Total Investor(s) 223 363. CNP Assurances Coatue Management DST Global Dragoneer Investment Group EXOR Index Ventures Kima Ventures Partech Partners Portag3 Ventures Power Financial Corporation Ribbit Capital Startup Garage Paris from Facebook Temasek 15 22 Brewer Lane Ventures Digitalis Ventures Fidelity Security Life Insurance Company Founder Collective New York Life Ventures Operator Partners Plug and Play Accelerator RGAx Ron Bouganim Symphony AI Group Two Sigma Ventures 46.2 80.6 Cherubic Ventures Danhua Capital Funcity Capital GGV Capital Hillhouse Capital Management Unicorn Capital Partners 1.51 2.21 Financial Solutions Lab Global Insurance Accelerator InsurTech NY Plug and Play Ventures Techstars Undisclosed Investors 7.18 10.4 Aphelion Capital 4/28/2021 Take Command Health 12 Note: Blue font denotes current round investors. 15.8 Live Oak Venture Partners Paycheck Protection Program SJF Ventures Description Alan is a Paris-based digital health insurance company that develops subscription-based software for insurance with clear pricing and transparent reimbursement policies. Alan is a primary insurer that distributes its own health plans directly to companies and individuals. Brella is a supplemental health insurance company. It aims to complement a user's health insurance and pays cash if the user is diagnosed with any of the covered conditions. Lima Technology provides SaaS solutions for small and midsize insurance brokerage companies. Everyday Life Insurance makes purchasing the right life insurance policy easier using artificial intelligence (AI) to provide advisory services and personalized recommendations. Avibra offers a platform that provides holistic wellbeing benefits to improve individual overall wellbeing. It uses data science and machine learning to track and reward individual good habits with life insurance coverage, which grows on a weekly basis and never decreases for less ideal ones. Take Command Health provides health insurance solutions to small businesses and individuals throughout the U.S. 78 willistowerswatson.com 79 Quarterly InsurTech Briefing Q2 2021 ThheeDDataatCaeCnternter Q2 2021 InsurTech transactions L&H Date 4/29/2021 Company 1upHealth 4/29/2021 Covr Financial Technologies 5/4/2021 Collective Health 5/7/2021 CrowdHealth Funding (US$M) Round Total Investor(s) 25 35.5 Eniac Ventures F-Prime Capital Jackson Square Ventures Mass Challenge Meridian Street Capital Social Leverage 12 36.5 Aflac Corporate Ventures Allianz Life Ventures Commerce Ventures Connecticut Innovations Connectivity Ventures Fund Contour Venture Partners Fairview Capital Partners Innovation Growth Ventures Nyca Partners Paycheck Protection Program Sony Innovation Fund Venture Clash 280 714 DFJ Growth Fund Formation8 Founders Fund G Squared Google Ventures Great Oaks Venture Capital Health Care Service Jeff Weiner Jeremy Stoppelman Maverick Capital Maverick Ventures Maverick Ventures Israel Max Levchin Mubadala Investment Company Mubadala Ventures New Enterprise Associates PFM Health Sciences Public Sector Pension Investment Board RRE Ventures Redpoint Ventures Rock Health Scott Banister Social Capital SoftBank Group Subtraction Capital Sun Life Financial s28 Capital 6.03 6.03 Undisclosed Investors 5/8/2021 Panda Brush BlueRunVentures Note: Blue font denotes current round investors. Description 1upHealth is a patient data aggregation platform for app developers, providers and patients. Covr Financial Technologies is a digital life insurance company that aims to make it easier to research, quote and purchase life insurance. Collective Health is a technology company aiming to make health insurance work better for everyone. The company provides employers with an integrated software platform that allows them to administer their benefit plans, take better care of their people and optimize their investment-all in one place. CrowdHealth creates a low-cost, tech-enabled alternative to health insurance. Panda Brush provides dental health management smart hardware and software solutions. The platform also provides smart dental insurance pricing model. Q2 2021 InsurTech transactions L&H Date 5/11/2021 Company Ethos Technologies 5/17/2021 HealthBridge 5/17/2021 Nayya 5/20/2021 ORGOA 5/21/2021 iLife Technologies 5/25/2021 Arogga Note: Blue font denotes current round investors. Funding (US$M) Round Total Investor(s) Description 200 306.5 Accel Arrive Ventures Downey Ventures General Catalyst Glade Brook Capital Goldman Sachs Google Ventures Kevin Durant RGAx Roc Nation Sequoia Capital Shawn Carter Silicon Valley Bank Smith Family Circle Stanford University Thirty Five Ventures Undisclosed Investors Ethos specializes in predictive analytics and data technology to provide life insurance policies. The application process takes minutes, and there are no medical exams for most applicants, as well as no commissioned agents. 14.16 26.16 4490 Ventures Magnetar Capital ManchesterStory Group Paycheck Protection Program Wakestream Ventures HealthBridge is a patient-centric services company helping employees manage out-of-pocket medical expenses like deductibles and coinsurance. HealthBridge connects all parties with a stake in payment -- the health insurer, the healthcare provider, the sponsoring employer and the patient -- and facilitates the design, underwriting and servicing of credit solutions working for the mutual benefit of all participants. 37 50.8 Bow Ventures Nayya helps employers find the right health insurance CNO Financial Group Cameron Ventures Entrepreneurs Roundtable Accelerator coverage plan for their employees, using data to increase transparency and provide cost-saving information about the doctor network nearby. Felicis Ventures Guardian Life Insurance Company of America Guardian Strategic Ventures ICONIQ Growth Plug and Play Accelerator SVB Capital Semper Virens Social Leverage Soma Capital Undisclosed Investors Unum Business Ventures Unum Group 12.22 12.22 Gaea Inversion ORGOA is a Spain-based company specializing in the management of claims and supplies for health insurance companies through the development of cooperative strategies. 4 4 AME Cloud Ventures Cherubic Ventures Foundation Capital iLife Technologies offers a user-friendly life insurance sales platform that reduces users' time to close while increasing revenue. 0.2 0.2 Adeeba Khan Falcon Network Hester Spiegel-vdSteenhoven Maaike Doyer Arogga is a healthcare platform that connects users with pharmacies, doctors, insurance and labs. 80 willistowerswatson.com 81 Quarterly InsurTech Briefing Q2 2021 ThheeDDataatCaeCnternter Q2 2021 InsurTech transactions L&H Date 5/25/2021 Company Everyday Life Insurance 5/26/2021 Zipia 5/27/2021 Bequest 5/31/2021 PlumHQ 6/2/2021 Pluto Health Funding (US$M) Round Total Investor(s) 0.13 2.21 Financial Solutions Lab Global Insurance Accelerator InsurTech NY Plug and Play Ventures Techstars Undisclosed Investors 500 Startups Canary VC Quin Street Undisclosed Angel Investors 2.07 2.07 Clocktower Technology Ventures Form Ventures Founders Factory Kuvi Capital 15.6 20.57 Abhijit Gupta Alvin Tse AngelList Anuj Srivastava Douglas Feirstein Gaurav Munjal Gemba Capital Harsh Jain Hemesh Singh Incubate Fund India Ishan Bansal Kunal Shah Lalit Kehsre Nitin Jayakrishnan Ram Sahasranam Ramakant Sharma Roman Saini Sudheendra Chilappagari Surge Tanglin Venture Partners Tiger Global Management Tracxn Labs Duke University Huma 6/3/2021 6/5/2021 Anorak Technologies 7.08 19.13 Charles Delingpole FinTech Innovation Lab Kamet Nic Kohler Outward VC Paul Evans Plug and Play Accelerator Triple Point Investment Management Will Neale MiCare 60 90 International Finance Corporation Mitsui & Co. 6/7/2021 Emerging Therapy Solutions 6 16.28 Telegraph Hill Partners Undisclosed Investors Note: Blue font denotes current round investors. Description Everyday Life Insurance makes purchasing the right life insurance policy easier using artificial intelligence (AI) to provide advisory services and personalized recommendations. Zipia is the Brazilian InsurTech spinout of QuinStreet (NASDAQ: QNST), a pioneer in online performance marketing. Bequest offers pay as you go life insurance and digital wills through a single, safe and secure platform. PlumHQ offers an online platform that provides employers and employees with customizable health insurance plans, pricing and healthcare experience. Pluto Health is a health data platform that helps patients access health data such as medical records and insurance information. Anorak is an online platform that assesses how much life insurance coverage a user needs and scans major insurance companies to find the right policy for the user. MiCare Group manages and administers medical claims for 50 insurers in the region serving corporate clients with panel hospitals, clinics and pharmacies. Emerging Therapy Solutions provides analytical software tools and outsourced services to insurance providers and other payers to manage expensive cell and gene therapies. Date 6/8/2021 Company SmartHR 6/9/2021 Doubao 6/9/2021 Zenda.la 6/11/2021 Perlib Funding (US$M) Round Total Investor(s) 142.6 222.3 500 Startups ALL STAR SAAS FUND Arena Holdings Management BEENEXT Coral Capital DG Ventures East Ventures Greyhound Capital Jun Nishikawa Kotaro Chiba Light Street Capital NISSEN Sequoia Capital Shoko Chukin Bank Signifiant The Fund Tokio Marine Holdings Whale Rock Capital Management World Innovation Lab Yu Akasaka 15.66 42.94 Bojiang Capital Capital Wings Five Stars Capital Grand Happiness Investment Haoxinda Herui Leye iSeed Capital Leading Capital Longling Capital Peakview Capital Zhongjin Huicai Investment Management 2 2 Angel Ventures Mexico Clout Capital G2 Momentum Capital K50 Magma Partners Moneta VC Undisclosed Angel Investors lotux.vc 0.61 0.61 Undisclosed Angel Investors 6/16/2021 Betterfly 60 6/21/2021 PazCare -- Note: Blue font denotes current round investors. 77.5 Albatross Capital DST Global Endeavor Grupo Prisma Katapult Impact QED Investors SOFTBANK Latin America Ventures Start-Up Chile Valor Capital Group -- Ashish Hemrajani Deepak Diwakar Haresh Chawla Mohit Garg Parikshit Dar Undisclosed Angel Investors Description SmartHR is a crowdsourced personnel management platform. The company automates procedures related to social insurance and unemployment insurance. It was developed to free up managers or human resources representatives from tiresome and time-consuming personnel management. Doubao is an internet insurance product platform that aims to provide employees with benefits planning, health management and insurance services for enterprises. Zenda.la offers an alternative for young people who find it complicated and unnecessary to take out insurance. Perlib is an insurance broker specializing in PER and life insurance. Betterfly is a digital health and InsurTech company that uses data science and machine learning to automatically track and reward individual good habits with no-cost life insurance coverage and charitable donations. PazCare is an India-based company offering an employee benefits and health insurance platform. 82 willistowerswatson.com 83 Quarterly InsurTech Briefing Q2 2021 ThheeDDataatCaeCnternter Q2 2021 InsurTech transactions L&H Date 6/22/2021 Company Bimaplan 6/23/2021 BimaPe 6/23/2021 NucleusIS Funding (US$M) Round Total Investor(s) 2.5 3.13 2AM Ventures Abhishek Rungta Acequia Capital Amino Capital Anupam Mittal Arjun Sethi Ashish Dave Dream Incubator EMV Capital FinSight Ventures Gokul Rajaram Goodwater Capital Jitendra Gupta Kunal Shah Nimesh Kampani Nisarg Shah Pallav Nadhani RaSa Future Fund Rajesh Sawhney Ramakant Sharma Ritesh Malik Roshan Abbas Samyakth Capital Shanti Mohan Titan Capital Y Combinator Yash Jain 0.55 2.18 Gemba Capital iSeed Lightspeed India Partners Titan Capital Y Combinator 0.02 0.02 Startupbootcamp AfriTech-ASIP Accelerator Program 6/26/2021 Bento Dental 2.13 6/30/2021 Bequest 2.35 Note: Blue font denotes current round investors. 2.13 Companyon Ventures Undisclosed Investors 2.68 Clocktower Technology Ventures Form Ventures Founders Factory Kuvi Capital Description Bimaplan works with insurers to create over-the-counter (OTC), low-premium insurance products to cater to lowand middle-income people with annual premiums. BimaPe allows users to understand their insurance policies, manage their policies and discover hidden benefits. NucleusIS provides digital health insurance solutions. The company offers a mobile application and digital platform that aims to help enable access to healthcare analytics and reporting tools. Bento is an integrated solution for organizations and individuals that enables affordable, pay-as-you go dental benefits without the need to contract with insurance companies. Bequest operates within the insurance industry with the sole purpose of simplifying wills and life insurance for the millennial market. 84 willistowerswatson.com Private technology investments by (re)insurers Private technology investments by (re)insurers 160 140 Q1 120 Q2 100 Q3 Q4 80 60 40 20 1 0 2012 4 2013 29 2014 66 22 19 14 11 2015 105 26 28 27 24 2016 119 33 28 32 26 2017 118 31 26 34 27 2018 132 24 43 35 30 2019 96 19 29 26 22 2020 48 27 21 2021 Private technology investments by (re)insurers by target country 2012 Q1222002201 United States 10% 2% 3% 5% France China United Kingdom 6% Germany 57% Canada 8% Israel Other 9% 4%4%4% 3% 7% 15% Q2 2021 63% United States France Singapore Australia Indonesia Switzerland United Kingdom 2012 Q2 2021 Transactions: 718 Q2 2021 Transactions: 27 Private technology investments by (re)insurers by investment stage 2012 Q2 2021 13% 4% 6% 13% 13% 28% Seed/Angel Series A Series B Series C Series D Series E+ Other 4% 4% 15% 15% Q2 2021 22% 18% 23% 22% Seed/Angel Series A Series B Series C Series D Series E+ Other 2012 Q2 2021 Transactions: 718 Q2 2021 Transactions: 27 85 Quarterly InsurTech Briefing Q2 2021 TDahtea CDeantearCenter Private technology investments by (re)insurers Date 4/7/2021 4/9/2021 4/12/2021 4/13/2021 4/13/2021 4/14/2021 4/20/2021 4/21/2021 4/28/2021 4/29/2021 4/29/2021 5/4/2021 5/5/2021 5/5/2021 Company Futurae Span.IO Choosing Therapy Clearcover Vericred Gradient AI Qapita HaloDoc Zirtue Expensya Alegre Collective Health Vida Health MentalHappy Funding (US$M) Round Total (Re)insurer investor(s) 5.39 7.59 AXA Venture Partners 10.36 44.64 Munich Re Ventures 5 7 American Family Ventures 200 307 American Family Ventures 23 34.66 MassMutual Ventures 20 30.95 American Family Venture MassMutual Ventures 5 6.8 MassMutual Ventures 80 158 Allianz X 2.25 4 Northwestern Mutual Future Ventures 20 25.61 MAIF Avenir Assurant 280 714 Sun Life Financial 110 188 AXA Venture Partners 1.1 1.22 Northwestern Mutual Future Ventures Description Futurae is creating multi-factor user authentication solutions for online applications. The company offers a portfolio of authentication products based on machine learning and sound. Span creates a smart panel that replaces the electrical panel; integrates with different energy resources; allows users to prioritize the areas that should be powered during outages and backup scenarios; and accommodates the proliferating solar, storage and EV-charging systems in a home. Choosing Therapy provides a mental health content site that connects people with therapists and helps therapists launch an online practice. Clearcover offers an app that provides fast claims, easy payments and a secure digital card. The company's API-first approach enables customers to have insurance at affordable rates. Vericred simplifies the exchange of data between carriers and technology companies that are transforming the way health insurance and employee benefits are quoted, sold, enrolled and managed. Vericred offers solutions for technology platforms and carriers focused on the employer market, as well as the under 65 individual, Medicaid and Medicare markets. Gradient AI seeks to address the need for artificial intelligence (AI) and machine learning (ML) solutions designed specifically for the insurance industry. Gradient's artificial intelligence helps commercial insurers automate and improve underwriting results, reduce claim costs and improve operational efficiencies. Qapita is a Singapore-headquartered digital equity management platform for private companies, particularly start-ups. Its software, QapMap, is designed to enable capitalization table (CapTable) management, employee stock ownership plan (ESOP) management and digital ESOP issuance with the aim of eventually enabling digital share issuance for companies across South and Southeast Asia. HaloDoc is a communication platform that instantly connects users to doctors and offers the quick, safe and convenient delivery of medications, vitamins and supplements. Zirtue is a relationship-based lending app that simplifies loans between friends, family and trusted relationships with automatic ACH loan payments by allowing the borrower to set an amount for the loan, while the lender defines the repayment terms. Once both parties agree, Zirtue services the loan -- for a monthly subscription fee -- via the Automated Clearing House (ACH) network. Expensya specializes in the intelligent management of professional expenses, offering companies and accounting firms cloud, web and mobile software to report expenses. Alegre is a specialist in the refurbished smartphone and tablet market. Collective Health is a technology company aiming to make health insurance work better for everyone. The company provides employers with an integrated software platform that allows them to administer their benefits plans, take better care of their people and optimize their investment -- all in one place. Vida Health is a virtual care company that combines a human-centric approach with technology to address chronic physical and behavioral health conditions. The platform integrates individual expert care with machine learning and remote monitoring to deliver lasting behavior change, health outcomes and cost savings. MentalHappy is an online mental health platform on a mission to make mental health care an accessible, affordable and stigma-free reality for everyone. MentalHappy strives to be culturally sensitive and is an online mental health platform designed to provide people of all races, genders and economic statuses a safe and secure platform to talk about their emotional health and the challenges they face in their daily lives and receive support from others who understand what they're experiencing. Private technology investments by (re)insurers Date 5/19/2021 Company Super Home Funding (US$M) Round Total 50 80 (Re)insurer investor(s) Liberty Mutual Strategic Ventures Munich Re Ventures 5/20/2021 5/26/2021 Virtuo LifeQ 61.05 47 131.4 47 AXA Venture Partners Hannover Re 5/28/2021 6/1/2021 MotoRefi 45 68.3 CMFG Ventures Bought By Many 350 477.3 Munich Re Ventures Description Super is a subscription-based service for homeowners that aims to help with home maintenance. Super's repair plan pays for repairs and breakdowns on covered appliances and home systems. Super's concierge service manages the logistics for all home service needs. Customers are able to access services from their desktop, tablet or mobile phone. Virtuo is a completely mobile short-term car rental service. LifeQ is a multinational science-driven technology and analytics company that combines skills from various disciplines to understand how physiology, anatomy, behavior, and the environment interact, as well as how human health and wellness can be improved with this understanding. MotoRefi seeks to provide easy, transparent auto refinancing. Its secure, digital platform makes it easy for customers to see exactly how much they can save and complete the refinance process quickly. Bought By Many uses data to develop insurance policies and negotiate discounts for users with unique insurance needs. 6/9/2021 BondEvalue 6 10 MassMutual Ventures BondEvalue is a Singapore-based fintech company that focuses on Asian bond markets. 6/9/2021 Embroker 100 143.8 Manulife Capital MassMutual Ventures Embroker is a digital insurance company that builds, underwrites and distributes commercial lines directly to insurance buyers for small and mid-sized enterprises. 6/9/2021 Branch 50 74 American Family Ventures Branch provides bundled home and auto insurance. With only two SCOR P&C Ventures questions, Branch can provide a bindable price to a client looking to bundle within seconds. 6/17/2021 6/24/2021 6/24/2021 Splash Financial 44.3 SmartAsset 110 Edflex 5.96 61.83 CMFG Ventures Northwestern Mutual Future Ventures 157.6 CMFG Ventures New York Life Ventures 5.96 MAIF Avenir Splash Financial is a student loan refinancing company that provides online lending options to help college graduates consolidate and refinance their student loan debt. Its mission is to help young professionals tackle student loan debt, so they can find financial freedom earlier in their careers. SmartAsset, owned and operated by Financial Insight Technology, is a financial technology company that provides transparent, automated and accurate advice on big personal finance decisions. SmartAsset helps users arrive at answers and make decisions concerning their finances. Edflex offers a digital training solution for companies. 6/25/2021 6/29/2021 Mayday Pathpoint 3 3 MAIF Avenir 30 36 Chubb Hiscox Holdings Mayday develops intelligent knowledge base software for customer services. Pathpoint is a provider of software solutions to help brokerages and carriers digital transact excess and surplus risk. 86 willistowerswatson.com 87 Quarterly InsurTech Briefing Q2 2021 TDahtea CDeantearCenter Q2 2021 strategic (re)insurer partnerships Date 4/1/2021 4/1/2021 4/5/2021 4/9/2021 4/12/2021 4/19/2021 4/20/2021 4/23/2021 4/29/2021 5/5/2021 5/5/2021 Company Opus IVS Spectrum Labs Corvus NYDIG SimpliSafe Paytm Veoneer Tractable APOLLO dacadoo TuSimple (Re)insurer investor(s) CSAA Insurance Group Munich Re Description CSAA Insurance Group has chosne Opus IVS as the company's preferred collision scanning solution for its Direct Repair Network. The Opus IVS DriveSafe and ScanSafe scanning solutions allow shops to improve cycle time while performing pre-scan, post-scan, OE scanning, flash programming and ADAS calibrations under terms reimbursable by the insurer. Munich Re has partnered with Spectrum Labs to establish a new industry standard for AI-based Trust & Safety systems. Spectrum Labs provides patent-pending technology to consumer internet brands to help identify toxic behavior online. Skyward Specialty Starr Insurance, Liberty Mutual Corvus Insurance and Skyward Specialty Insurance Group have partnered to expand Corvus's Smart Cargo + CyberTM offering. The announcement follows Corvus's $100 million Series C fundraising round, which brought the company to a $750 million valuation. New York Digital Investment Group (NYDIG), the bitcoin investment arm of Stone Ridge Asset Management, is creating bitcoin-powered products and services for the global insurance industry. The company has formed strategic partnerships with major insurers, including Starr and Liberty Mutual. Farmers Insurance Farmers Insurance have partnered with SimpliSafe, a maker of home security systems, to make preventative smart home protection available to homeowners in Alabama, Iowa and Ohio. Life Insurance Corporation of India Swiss Re Covea Lloyd's of London HSBC Life Liberty Mutual The Life Insurance Corporation of India has partnered with Paytm to facilitate digital payments for the country's largest insurance company. Veoneer and Swiss Re have partnered to further enhance the evaluation and development of advanced driver-assistance technologies (ADAS) and related services. Covéa has partnered with Tractable to accelerate the processing of its policyholders' claims across its three brands -- MAAF, MMA and GMF -- with Tractable's AI technoloyg that analyzes damage to cars. APOLLO has secured coverholder status with Lloyd's of London. This will give APOLLO access to an expanded product portfolio, and the ability to manufacture unique products to respond even more rapidly to emerging market opportunities. HSBC Life and dacadoo have announced a global partnership to help customers improve and maintain their physical, mental and financial wellbeing. TuSimple, a global self-driving technology company, and Liberty Mutual Insurance have announced a partnership to assess the comparative s afety of autonomous trucks. Q2 2021 strategic (re)insurer partnerships Date 5/6/2021 5/17/2021 5/24/2021 5/25/2021 5/26/2021 6/10/2021 6/14/2021 6/23/2021 6/30/2021 6/14/2021 6/1/2021 Company Snapsheet (Re)insurer investor(s) SCOR Hippo Insurance, Hippo Insurance, Metromile Metromile Hugo Safekeep SafeAuto Root Insurance Tractable GEICO Insurify Nationwide Kovrr Acrisure Re LowestRates.ca APOLLO NOW Hiscox Zesty.ai Farmers Insurance Samsung Vitality Description SCOR has formed a new strategic partnership with Snapsheet that will provide its clients with access to an end-to-end claims management platform, digital payments platform, motor virtual appraisal offering and set of third-party integrations. Online insurance platform and pay-per-mile vehicle insurer Metromile and Hippo Insurance Services, which offers home insurance, have partnered to provide a multipolicy discount on auto and homeowners insurance to consumers. SafeAuto has partnered with Hugo to offer pay-as-you-go car insurance. Root has partnered with Safekeep, an InsurTech that uses AI to maximize net recovery through its Claimflo product. GEICO has partnered with Tractable to accelerate its auto claim and repair process. Tractable's proprietary computer vision technology, trained on millions of historical claims, assesses vehicle damage like a human appraiser. Insurify, the AI-powered insurance comparison platform, has partnered with Nationwide to provide Nationwide customers with a choice-shopping experience complete with car insurance quotes from multiple insurers. Reinsurance broker Acrisure Re has launched a London-based cyber division in partnership with cyber risk modeler Kovrr. APOLLO Insurance has partnered with rate comparison website LowestRates.ca to offer site visitors immediate access to digital insurance products. AI-enabled insurance platform NOW has partnered with Hiscox on medical malpractice insurance policies for health care professionals on its direct-to-consumer marketplace. Farmers Insurance has integrated Zesty.ai's wildfire risk scoring model (Z-FIRETM) into its homeowners insurance underwriting processes expanding opportunities for coverage for residences located in certain wildfire-risk areas. Vitality has partnered with Samsung to expand its Vitality Programme for Android users. 88 willistowerswatson.com 89 Quarterly InsurTech Briefing Q2 2021 TQuhaertDeralytIansCureTnect eh rBriefing Additional information The Quarterly InsurTech Briefing is a collaboration between Willis Re, Willis Towers Watson's Insurance Consulting and Technology, and CB Insights. Production is led by following the individuals. For more information, or to discuss the results of this report, please direct inquiries to InsurTech@willistowerswatson.com. Eleanor Somerville Quarterly InsurTech Briefing Editorial and Content Support Lead Willis Re Joel Fox Global Life Product and Solution Leader Insurance Consulting and Technology Willis Towers Watson Oliver Yu Intelligence Analyst CB Insights Willis Re is one of the world's leading reinsurance advisors. Over our 180-year history, we have developed a deep insight into all aspects of the global insurance industry. In particular, we understand how individual insurance companies develop and drive their own unique strategies to achieve their goals. We offer you comprehensive service backed by stable, well-trained staff to help you reach and exceed your specific targets in the most cost-effective fashion. We have a deep understanding of risk -- and all the ways it affects capital and your organization's financial performance. Our core focus is to provide you with a superior understanding of the risks you face, and then advise you on the best ways to manage extreme outcomes. Willis Towers Watson's Insurance Consulting and Technology provides a powerful combination of advisory services for insurance companies, integrated with leading-edge technology solutions and software that is underpinned by unparalleled analytical capabilities. We combine our deep insurance domain expertise with our technology capabilities to support clients with risk and capital management, strategy and growth, technology, and operational effectiveness and profitability. CB Insights is a Pilot Growth and National Science Foundationbacked software-as-a-service company that uses data science, machine learning and predictive analytics to help our customers predict what's next -- their next investment, the next market they should attack, the next move of their competitor, their next customer or the next company they should acquire. 90 willistowerswatson.com 91 Quarterly InsurTech Briefing Q2 2021 About Willis Towers Watson Willis Towers Watson (NASDAQ: WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has 45,000 employees serving more than 140 countries and markets. We design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. 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