Insurtech in Israel is gaining fresh support from the government with the Israel Innovation Authority awarding a US$650,000 grant to the Swiss insurtech, K2G LTD - the subsidiary arm of Kasko2go.
Based in Zurich and founded in 2017, the telematics-driven insurtech specialises in innovating Research and Development (R&D) disruptive technology in insurtech and for the wider insurance industry. Kasko2go’s flagship, open source technology, called Normal Sigma, is rooted in big data and AI. The solution offers the first risk assessment system for the car insurance market that is based purely on uncontestable data.
The technology processes 0.5 PB of data, and Normal Sigma calculates the precise accident probabilities for drivers, giving underwriters and actuaries real-time information that can accurately modify their pricing and risk, assessment models.
Government support for insurtech in Israel
The move indicates the Israeli government’s commitment to the continued innovation within the R&D sector.
In a statement released by the Israel Innovation Authority, the body laid bare its intentions to assist creative insurtech startups in the region. It said: “Fueled by vibrant entrepreneurial culture, robust technological infrastructure and highly skilled human workforce that produces the most substantial number of startups per capita in the world, innovation is one of Israel’s most valuable natural resources.
"At the same time, Israel is today home to over 350 R&D centers of multinational corporations, many of them Fortune 500 companies, illustrating Israel’s profound and disproportionate impact on the advancement of global innovation as well.”
Israeli grants for insurtech
The awarding of the grant is only possible for companies that successfully pass stringent criteria for innovation.
According to reports, K2G LTD was first challenged by a team of experts, on both the innovation and R&D sides before financial support was granted. Additionally, the Israel Innovation Authority assessed the competence and potential of the team to deliver on the technology.
Other companies that received funding from the Israel Innovation Authority include Waze, a GPS navigation software app with around 140 million users, which was sold to Google for $966mn in June 2013.
Speaking about the grant, Genadi Man, chairman of the go2solution holding company, said, “We are very pleased that our innovative technology (Normal Sigma) and our R&D team in Israel withstood the stringent due diligence of the Israel Innovation Authority, and were selected as one of the few companies to receive funding.”
He added, “For clarification, I would like to underline the philosophy behind the funding received in our case, which is that the commitment of the Israeli government is primarily to support our pioneering innovations and human capital, as an Israeli-based company, rather than a classical investment.”