World’s first micro transactional insurance platform created
As the name suggests, the company’s focus will be on providing microinsurance to the 4bn people in the world who do not hold any kind of protection policy.
Microinsurance works in a similar fashion to regular insurance: policyholders receive contingency coverage in return for paying a premium. However, in this instance, it will be for the protection of those with a low income.
Usually a highly complex and fragmented market, TMIC has remedied the situation by creating the world’s first end-to-end digital solution specifically for microinsurance, combining reinsurance, country insurance licenses, market distribution and artificial intelligence (AI).
A significant milestone
Commenting on the merger, Harry Croydon, Founder of STP Group and now the CEO of TMIC, said, “Today’s announcement marks one of the most significant milestones in the history of the microinsurance industry.
“After years of market development, it is only now that the necessary technology has been developed so that we can offer complete microinsurance products to the unserved. We provide people with a simple safety net, so when the unexpected happens, they can bounce back swiftly.”
Each of the constituent partners has contributed a vital element to the company’s overall development: resources, technical experience and thorough knowledge of the insurance sector.
TonkaBI brings the enterprises’ automation capabilities, utilising AI, robotic process automation (RPA) and computer vision to accelerate operational processes and spearhead digital transformation efforts.
Meanwhile, MicroEnsure has accrued almost 20 years in the microinsurance space, having launched over 200 products and served in excess of 65mn people across Africa and Asia. It accomplished this through intelligent partnerships with MFIs, banks and other innovative tech-based companies.
“Today begins an important new chapter for MicroEnsure,” said Richard Leftley, Founder of the company and now EVP of TMIC.
“As the first dedicated microinsurance pioneer, we needed to take on the role of underwriting having found the right partners to create, sell and service our own products globally and at a massive scale. We look forward with great excitement to working together to enhance the lives of people globally.”
TrueMotion insurtech acquired by Cambridge Mobile Telematics
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.
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 by 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 speed of vehicles.
3. It improves driving standards and monitors driver behaviour, minimising 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.