Feb 16, 2021

Transforming real estate insurance: Who is LeaseLock?

LeaseLock
AI
realestate
Insurance
William Girling
2 min
Transforming real estate insurance: Who is LeaseLock?
Insurtech LeaseLock is determined to transform real estate forever by eliminating security deposits, which it considers to be ineffectual and outdated...

To work around these limitations, LeaseLock leverages an AI-driven platform that can be seamlessly deployed through a building owner’s existing IT management system. Upon joining the ‘zero deposit community’, customers gain access to:

  • An online lease checkout which swaps large security deposits for a small monthly fee
  • US$5k of coverage (Standard package)
  • Automated final account statements 

Depending on the property owner’s needs, three coverage plans are currently available (paid by the resident with rent):

  • $19 per month = $2.5k rent and $400 damage
  • $29 per month = $5k rent and $500 damage
  • $39 per month = $7.5k rent and $500 damage

Securing a gap in the market

At the time of writing this article, the company has reached approximately 1.5 million homes and insures around $1bn in leases.

LeaseLock also currently markets itself as the “only deposit replacement technology” available. As such a unique venture, it is unsurprising that the company managed to secure $52m in a Series B financing round earlier in February. 

The round was led by London-based investor Westerly Winds in conjunction with Wildcat Venture Partners, with further backing coming from notables such as SoftBank Ventures Asia, Liberty Mutual Strategic Ventures, American Family Ventures, and more.

Assessing the value proposition of the company, Karim Abdel-Ghaffar Plaza, Founding Partner of Westerly Winds, said, “Through technology, LeaseLock has intelligently solved [the problem of security deposits] while setting the foundation for an end-to-end enterprise insurtech platform. We are excited to back the business as it continues to realise its vision.”

Answering the call for a new solution

As with many companies emerging in the insurtech space, LeaseLock considers itself primarily as a technology company powered by insurance. As such Derek Merrill, Co-Founder and CEO, commented that the new funds would accelerate its development:

“We’re doubling-down on our core deposit replacement product, while investing in new insurance lines, payment and receivables technology, and market channels.”

Reichen Kuhl, Co-Founder and President, intimated that LeaseLock’s growth was inevitable in a market crying out for new solutions to enduring problems:

“The market is shouting for a better solution to upfront housing costs that serves both the renter and the operator. Our technology platform completely removes friction, cost, and regulatory risk from our customers’ operating infrastructure and P&L.”

As one insurtech’s most innovative offerings, the continued development of this California company should be something everyone follows with great interest.

Image and video credit: LeaseLock

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Jun 18, 2021

TrueMotion insurtech acquired by Cambridge Mobile Telematics

truemotion
cmt
telematics
Insurtech
3 min
US-based TrueMotion and Cambridge Mobile Telematics provide mobile phone telematics technology

Two leading US telematics firms have joined forces as Cambridge Mobile Telematics acquired TrueMotion, another Massachusetts-based insurtech firm. 

One of the world’s leading telematics insurtechs, Cambridge Mobile Telematics, was launched in 2010 and powers 65 enterprise programmes in 28 countries.

Meanwhile, TrueMotion, which launched in 2012, has enjoyed significant success as a telematics operator, raising US$10mn in its seed funding round in 2010, and then partnering with the motor insurtech Noblr in 2019. 

TrueMotion has also entered the European market, collaborating with LB Forsikring to promote safe driving in Denmark.

Telematics expansion

The joining of the companies means TrueMotion’s 150-strong workforce will join Cambridge Mobile Telematic’s already established team, along with their client list, which includes Travelers, Farmers, and Progressive. 

The new company will focus on increased interest in using telematics for crash reconstruction in personal lines claims and more innovation in the telematics space. 

Speaking about the acquisition, William Powers, CEO, and co-founder of Cambridge Mobile Telematics, described the move as an opportunity to explore new markets, expand throughout the US and bring telematics to a much wider customer base.  

"With this acquisition, we will use our world-class talent, technology, and scale to help our partners overcome the complex challenges of global road safety,” he added.

Ryan McMahon, VP of insurance and customer affairs for Cambridge Mobile Telematics, explained that expanding the company with additional talent and customers would help meet the demands of a growing telematics market. He also quoted data from a study by J.D. Power which revealed that personal auto telematics users have doubled in five years to 16% of policyholders.

McMahon told the press, “This market is rapidly expanding, and building more capabilities is more important than ever,” McMahon says. “Both companies follow similar philosophies and grew up in similar ecosystems, and now we’re bringing those cultures together.”

He continued, “Telematics is absolutely the future of commercial auto and rideshare, and it’s kind of a step up beyond the normal telematics."

McMahon added, “We will not only widen our lead in smartphone telematics, but also use our combined talent to invent new products for risk measurement, contextual telematics, and crash mitigation across emerging mobile, IoT, connected-car, video, and sensing technologies.”

Five reasons why telematics is in demand

  1. It reduces fuel costs and increases operational efficiency. This is a consideration for most commercial fleets given the rising costs of fuel
  2. The technology enables fleet managers to plan operations with greater precision by providing exact locations, timescales, and speeds of vehicles. 
  3. It improves driving standards and monitors driver behaviour, reducing detours and ensuring responsible driving. 
  4. It helps fleet health and maintenance by monitoring the health of operational vehicles.
  5. It increases corporate social responsibility in terms of care for the driver, the vehicle, the impact of driving in terms of emissions, and also the security of the vehicle itself.

Image credit: Getty

 

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