Singapore's Azentio acquires specialist insurtech Beyontec
According to reports, Azentio has already signed the acquisition agreement for Beyontic, an insurtech that has a 300-strong workforce and 64 business customers in the US, Africa, and the Middle East.
Beyontec provides a wide range of digital solutions for the insurtech industry, including a digital platform-based ecosystem, a core multi-line insurance administration system, and a toolbox of cloud-based accelerator solutions.
As an SaaS startup, Azentio Software was founded in 2020 and provides mission-critical, vertical-specific software products for customers in banking, financial services and insurance verticals.
It currently has 700 customers in more than 48 countries with a strong team of over 1,600 employees across offices in nine countries globally.
Azentio expansion plans
The new acquisition of Beyontec is part of an expansion strategy by Azentio. The purchase which will see its customer base and product suite increase.
Beyontec will also provide Azentio with the opportunity to branch into preeminent banking, financial services, and insurance-led technology solutions in high-growth markets.
Currently, the two companies have significantly similar interests that will enable Azentio to offer an enhanced insurance product and end-to-end insurtech solutions for General, Health, Life, and Commercial insurance.
The acquisition also allows for significant scale benefits and investments in next-generation insurance technology products.
Speaking about the recent acquisition, Tony Kinnear, CEO, Azentio said the company is focused on creating a leading regional insurance and banking technology entity. The resulting services will aim to deliver cutting-edge products with deep domain and local market experience to help customers transform and grow.
He said, “I am delighted to welcome the Beyontec team to Azentio. We have much in common, including our client-first culture and our focus on excellence. Together we will be able to offer an unbeatable range of solutions to our clients."
Vivek Sethia, CEO and Co-founder, Beyontec described the move as an “incredible opportunity” for the combined entity to offer future-ready insurance solutions to make our customers highly competitive.”
Sethia added, “We are excited to combine our resources and best practices to further enhance the value we bring to clients in the insurance industry."
Main image credit: Getty
Anti-fraud technology firm FRISS raises US$65mn in funding
FRISS, a technology firm specialising in anti-insurance fraud and provider of AI-focused insurance fraud prevention products, has today announced it has raised US$65mn in Series B funding to expand its business and develop new products. Led by private equity firm Accel-KKR, the round was endorsed by investor Aquiline and advised by FT partners.
The company, active in more than 40 countries worldwide, will aim to save insurers around US$2bn in capital obtained from fraudulent activity this year alone. “We’ve been around for 15 years and completed over 200 implementations,” said Jeroen Morrenhof, FRISS CEO and co-founder.
“FRISS is ready to scale exponentially through our Series B, taking our mission of accelerating safe digital transformation throughout the policy lifecycle to the next level,” Morrenhof added.
How does FRISS’ anti-fraud technology work?
The technology used by FRISS to detect fraudulent activity integrates artificial intelligence (AI) to help insurers reduce losses and increase operational efficiency. The company said it offers real-time end-to-end P/C insurance fraud analytics products and services covering the complete lifecycle of the policy, including automated underwriting risk assessment to fraud detection during claims and comprehensive case management.
Alerts are displayed via integrations with core systems such as Guidewire, Duck Creek, Sapiens, and Keylane. In addition, the system can pull additional information from various available data points to create a “holistic view of the risks attached to each policy request, renewal, or claim,” the company said.
Insurance fraud and ghost broking
Leading UK car insurance firm Aviva found more than 12,000 fraudulent claims were made in 2020, totalling more than £113mn. This amounts to 33 claims per day or one every hour. The company expects insurance fraud to increase due to the financial strain brought about by the coronavirus pandemic. It also found that more than 19,000 claims were under investigation for fraud whilst fraudulent policy applications and Ghost Broking grew by 34%. Ghost broking is a type of insurance fraud predominantly affecting the car insurance sector. It involves a fraudster or scammer targeting higher-risk individuals such as newly qualified drivers and elderly people, pretending to be either an insurer or someone who can purchase insurance on a driver’s behalf.
They tend to advertise their services on social media, university campuses, pubs, and students forums, promising cheaper insurance. After claiming to have purchased insurance successfully, they then cancel the insurance and leave the victim with no cover. They may also forge insurance documents or falisfy a driver’s details, invalidating the policy.