|
|
|
|
Hi there,
In 1998, Progressive rolled out a pilot program in Texas called Autograph to determine whether or not auto insurance premiums could be calculated on a pay-as-you-drive basis.
Since then, Progressive has continued to test and iterate solutions toward tracking individual driving behavior. In 2004, it launched a program in Minnesota called TripSense, in which it would send a dongle in a box with a cord to upload data to Progressive after 6 months. Four years later, it rolled out a product called MyRate, which wirelessly transmitted data collected from an OBD device to Progressive.
Eventually, the product was renamed Snapshot in 2011 and today is offered with the option of either the plug-in device or its mobile app. In February, Progressive said it had collected 300 million miles driven via its Snapshot mobile app.
With that context in mind, it's interesting to look into the development of Columbus-based auto insurance startup Root Insurance. To date, Root says it has collected about 1 billion miles of mobile telematics driving data.
Root is a licensed auto insurer in 20 states and offers discounted rates based on driving data collected upfront. While Root is a top 50 app in the finance category, it currently only reaches 39% of of the country's population.
According to filings, Root's premiums grew to $14.9M in Q2'18 from $7.9M in Q1'18. A large portion of Root's policies come through paid referral.
Here are a few other items to watch for Root moving forward:
1) Other ways it can take advantage of mobile: 100% of Root policyholders have its app installed. This enables new experiences in areas like claims that are tailored to mobile.
2) Geographic expansion: Root says it plans to expand into all 50 states and Washington, D.C. by the end of 2019. But in California, telematics UBI programs are only able to use mileage driven.
3) Channel partnerships: As Root grows its availability, it could potentially look to strategic partnerships down the line (one that could be interesting is the aggregator channel i.e. Credit Karma).
JPMorgan goes free
Outside of the insurance world, another big announcement this week was JPMorgan's decision to launch a digital investing service that comes bundled with free or discounted trades.
Next week, 48M JPM customers will be granted access to the new digital brokerage. We do a detailed breakdown of JPM's entire digital consumer banking strategy here.
Have a great weekend,
Matt
@mlcwong
P.S. We're launching TRANSFORM, a new CB Insights conference, for corporate strategy and innovation teams on Dec. 4-5 in NYC. RSVP at our early registration rate here.
|
|
|
JPMorgan Chase is rebuilding its consumer business model to create a "digital everything" strategy that trades short-term losses for long-term profits. Read the profile.
In this report, we explore Google's many healthcare initiatives and areas of potential future expansion. Read the analysis.
|
|
This Week in Insurance Tech
A curated mix of recent articles on insurance tech financings, exits, hiring, product launches, partnerships, and perspectives.
Deals
Tiger Global leads $100M investment in Root Insurance. The Columbus, Ohio-based car insurance startup, which provides rates incorporating individual driving behavior, plans to be nationwide by the end of 2019. The deal values Root at $1B.
TechCrunch
SoftBank invests in Zhong An International. SoftBank's Vision Fund invested in the new operating entity to explore international opportunities for Zhong An's technology solutions.
Intelligent Insurer
PLNAR raises $3.9M Series A. The startup provides an AR solution that enables real-time 3D models of interior spaces. ManchesterStory Group led the round.
Insurance Journal
Galaxy.ai raises $2.9M. The startup aims to provide a damage cost estimation product called Galacticar.
CB Insights
By (re)insurers
USAA leads investment in Robin Systems. The San Jose-based startup provides hyper-converged Kubernetes for databases and AI/ML. USAA is a Robin Systems customer.
FinSMEs
Company & Insurer News
Cathay Life partners with Clover Health. The strategic partnership will allow Cathay Life to leverage Clover's platform for identifying at-risk patients. Clover also announced plans to expand into six new markets in 2019.
Clover
Fintech eyes opportunity in $15B title insurance business. California Insurance Commissioner Dave Jones has approved a license for startup title insurer license States Title to operate in California.
Bloomberg
American Family launches on-demand jobs platform. Launched in Chicago, Moonrise was conceived in order to help customers find flexible, paying work after finding customers of The General were having trouble paying bills on time.
Insurance Business
Selective partners with Bosch. Selective Insurance Company of America introduced a new application allowing its commercial auto clients to better monitor their drivers.
Insurance Business
Human API launches life insurance solution. The EHR data startup has developed an enterprise portal for carriers to request and view real-time access to medical records.
Human API
Generali Hong Kong partners with Blink. The partnership will see Generali’s strategic reinsurance solution team expand its offerings to include travel disruption insurance solutions for its reinsurance customers.
ITIJ
RSA partners with Zego on pay-as-you-go courier cover. Flexible insurance startup Zego has partnered with RSA to launch a pay-as-you-go insurance aimed at part-time courier and parcel delivery drivers.
FleetNews
|
|
|
If you loved this newsletter, send it to a friend.
If you hated it, send it to an enemy.
|
|
All the data in this newsletter comes from CB Insights. Join NEA, Cisco & hundreds of other clients and get access to the industry's best private company data.
Sign up for access.
|
|
|
|
|
|
|
|
|
