BeeSafe reports rapid growth and partners with Guidewire
The digital startup which was launched in 2015 in Slovakia, operates as a location-based, next-generation security service that notifies friends and family members if the app's user is in peril.
The platform is a collaborative effort with VIG & Compensa Insurance Company in Poland, which is dedicated to full digital delivery of MOD & MTPL products.
BeeSafe provides a unique selling point in that customers need only share two simple pieces of information (date of birth and car registration) to receive the MOD/MTPL offer. The onboarding process takes seconds and does not require sensitive data, as is the norm with competitors.
The past four months have seen significant growth for the platform. BeeSafe was founded by VIG, a leading insurance group in Austria, Central and Eastern Europe.
The company operates a dynamic customer offering and has potential for expansion in VIGs current regions. BeeSafe is using the Guidewire platform to manage policy admin, claims, billing, management and underwriting.
The enterprise is also making use of Guidewire's omni channel digital experience for policyholders, vendors and customer service representatives.
, Beesafe's CEO, explained, "Beesafe is a purely digital venture with a strong insurtech identity. This is unique within the CEE area. At the same time, being part of VIG provides us with robust insurance credentials."
He continued, "We are very proud that right in the middle of the COVID-19 pandemic, starting in mid-April, we developed and delivered a digital offering and platform in four months, with a go-live in August. This is testament to the talented, agile and creative team that we formed from scratch to launch our innovative value proposition."
He added, "With Beesafe we have set out to deliver a seamless service to a young generation of digital natives that is entirely customer-centric, personalised, and simple to use. This is made possible by employing best of breed data modelling. To succeed, the best frontend technology must be supported by the best backend core systems."
, Managing Partner at Sollers Consulting, a partner of Guidewire, said, "Beesafe has created an attractive offering with flexible products and a fully digital sales process. We look forward to developing new products and additional services within Guidewire Software's powerful IT infrastructure."
Guidewire's management solutions for BeeSafe include;
- Providing and easy-to-employ, fast user interface through high-technology mobile wallet, STP, predictive modelling and image recognition.
- Using agile methodologies to create fast design and deployment of new products
- Keeping operational costs to a minimum by using tried and tested commodity architecture.
- Managing API-driven interfaces to integrate partners swiftly to enable multichannel products.
Insurtechs are winning the race with legacy system companies
Nestled in its own place within the world of financial services, insurance is arguably more unpopular than retail banking.
That’s hardly surprising given that, from a customer service perspective, insurance is something of an off-kilter transaction. You pay a sizable premium in exchange for a service you hope you will never have to use. This image problem is exacerbated by ubiquitous tales of insurers not paying out when it is time to make a claim.
The insurance sector has long been due to an overhaul, and this is where the disruptive force of insurtech comes in - one of fintech’s most upwardly mobile subcategories. Accordingly, last year, insurtech in the UK alone attracted £262m in investment, a growth of 60% on 2019, according to Tech Nation. Insurtech’s momentous growth has been captured in a new report by The AI Journal exploring this burgeoning sector.
What exactly is insurtech?
Put simply, insurtech refers to technological innovations that seek to make insurance cheaper to buy and more efficient to use. In a similar vein to fintech, the large, established institutions have been dipping their toes into insurtech, but it’s the disruptors who are genuinely looking to shake up the status quo, diving into and exploiting those areas that traditionalists have little imperative to explore.
Examples are price comparison sites (one of the earliest forms of insurtech that was eventually snapped up by the insurers it initially sought to disrupt), claims software, customisable policies, or even smart-tech-enabled dynamic policies whose premiums can fluctuate depending on changing circumstances.
The latter, for instance, could use someone’s fitness tracker or smartwatch to monitor fitness levels, thus reducing the premium of a life insurance policy; or track a GPS system that records the location of a car and assesses risk levels accordingly.
Most consumers tend to shop around for their insurance needs and perhaps end up buying their contents insurance with one provider, their car insurance with someone else, and their pet insurance with yet another underwriter. Managing all these different policies, with their varying renewal dates and payment terms can be complex. This has led to the increase in apps that pull everything together.
More prosaically, insurtechs are developing AI that uses machine learning to act as an insurance broker, eliminating the need for a human intermediary and therefore offering more cost-effective and impartial advice.
Insurtechs and risk
But there are some obstacles in the way of insurtech’s continued evolution.
Insurance companies are averse to risk. Understandably so, as at the crux of the industry is the role of the actuary, whose job it is to analyse and measure the probability and risk of future events. So it’s little wonder that there’s a reluctance among the traditional players to welcome the disruption that insurtech brings.
Insurance is heavily regulated, a minefield of legality and labyrinthine jurisdiction, which means the idea of shaking it up can be anathema. And why would they, when their old-school business models are working perfectly fine?
There’s an understandable nervousness and unwillingness to work with startups, who themselves need to work with the bigger firms in order to underwrite risk.
While it seems like a catch-22 situation, there is growing, if cautious, interest from insurance companies, who can see the benefits of insurance with a friendlier face, innovative solutions, and a competitive edge through differentiation. As that tentativeness dissipates, the growth of insurtech will gather even more momentum.
Tom Allen's analysis is based on the findings of a new report on the fintech and insurtech industries produced by The AI Journal.