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How InsurTech-Insurance Partnership Delivers New Product Innovations

4 minutes, 27 seconds read

In 2019, InsurTech funding reached $6 billion, acknowledging the pace that technology can bring to overcome the age-old Insurance problems, the State of AI in Insurance 2020 says. While Incumbents are known for their core competencies in end-to-end insurance processes (from underwriting to claims settlement and reinsurance), InsurTechs are enticing millennials with fully digital innovative products and solutions.

The current situation can be viewed as either growing competition for traditional Insurers or an opportunity to collaborate and procure maximum benefits from each other’s competencies.

The World InsurTech Report 2019 states that nearly 90% of InsurTechs and 70% of Insurers are interested in collaboration with other InsurTechs and Insurance firms.

[Quick read: 10 Key Takeaways from the World InsurTech Report 2019]

In this article, we will discuss how InsurTech and Insurance partnership is proving beneficial for the entire ecosystem along with some successful partnership stories.

InsurTech and Insurance Partnership Benefits

A recent study pointed out that 70% of Insurance Executives are interested in collaborating with InsurTechs for developing new offerings. While developing new & innovative offerings remains the focus, such partnerships can play a crucial role in improving operational efficiency, enhancing customer experience, and increasing data capabilities. 

InsurTech and Insurance Partnership outlook
Source: The State of AI in Insurance


Enabling Mobile-first Business Model

The current generation cares about self-managing everything that matters to them (including Insurance) on mobile. If it’s not convenient to use, the consumer is, perhaps, not ready to adopt it. For instance, each day, more than 5 billion people go online using their smartphones or mobile devices.

InsurTechs, as consumer-focused they are, have been leveraging mobile technologies for micropayments, mobility and IoT connectivity.

Insurer’s benefits:

  • Capability to extend their services/products to the mobile channel.
  • Attracting new customers who are more inclined towards self-service options.
  • Making information and services accessible and available everywhere, irrespective of geographical location, thus enhancing the customer experience.

Gaining Operational Efficiency at Scale

Insurers can harness InsurTechs’ capabilities on cutting-edge technologies like cognitive process automation, natural language processing, and ML-derived insurance analytics. Applications built using these technologies are scalable to the enterprise level. 

[Related: Cognitive Automation and Its Importance for Enterprises]

For instance, with cognitive automation, Insurers can improve the efficiency and quality of computer-generated responses. Forrester predicts cognitive processes will overtake nearly 20% of service desk operations.

Similarly, InsurTechs are investing in developing workflow automation solutions, using which Insurers can create new automated workflows and/or customize existing workflows. Workflow automation with intelligent document and data processing capabilities has resulted in over 80% operational gains over manual processes.

Another milestone in improving operational efficiency is achieved through the adoption of chatbots. NLP-powered chatbots seamlessly integrate with an organization’s workflows and are a great way to humanize machine conversation and at the same time automate customer service portals.

Opportunity to extend the portfolio

InsurTechs still require traditional Insurers’ support for underwriting and during risk mitigation. On the other hand, Insurers are sceptical about micro and on-demand insurance because of the distribution challenges it poses for low-profit products. Insurers and InsurTechs can easily bridge the gaps and at the same time extend their range of offerings through strategic collaboration. Since 2017, Insurance and technology firms have announced more than 180 partnerships, KPMG states

For example, American Family Insurance (AmFam) organizes its interests around innovation, advanced analytics, and connectivity. It has investments in CoverHound, HomeTap, Bunker, Wireless Registry, and LeaseLock.

“By making these investments, we do seek a financial return with the investment, but really we look for opportunities to work together, reconnaissance on how the world is changing.”

Dan Reed, MD, Managing Director, American Family Ventures

Source: Insurance Journal

Thus, InsurTech and Insurance partnership can also benefit from extending the product portfolio. Let’s now look at some remarkable examples.

4 Noteworthy InsurTech and Insurance Partnerships from Recent Years

1. Zurich Connect and Yolo

Zurich Connect, the digital arm of Zurich Italy, partnered with on-demand digital Insurance broker Yolo to provide virtual assistance to its customers. Together, they launched HomeFlix — to provide a range of Insurance coverage to renters and homeowners. 

HomeFlix offers laundry service, concierge maintenance services such as plumbing and electric, and cleaning services to its customers along with regular and short-term insurance coverages starting at a nominal price of € 3.55 per month.

2. FRIDAY and Friendsurance

FRIDAY is a Berlin-based InsurTech startup. It offers digital automotive insurance with flexible terms like kilometre-accurate billing and the option to terminate at month’s end. The company partnered with Friendsurance, an online peer-to-peer insurance service provider. Friendsurance business model relies on paying out a percentage to customers who do not use (or use very little) annual insurance.

This partnership helps FRIDAY to sell at its policies on the Friendsurance platform and Friendsurance benefits from providing a range of insurance cover options to its customers.

3. Generali Global Assistance with Lyft and CareLinx

Generali Global Assistance is a division of Italy’s Generali Group. It provides travel insurance-related services. The company partnered with  InsurTech Lyft and CareLinx to improve customer service and provide value-added services (e.g. CareRides, a door-to-door transportation service for special-needs individuals) respectively. 

4. Prudential Singapore and StarHub

Singapore-based Prudential Insurance Company is the subsidiary of Prudential Plc, a British multinational life insurance & financial services company. The company partnered with StarHub to create FastTrackTrade — a digital trading platform. Using the FastTrackTrade platform, users can buy/sell goods, track shipments, make transactions, access financing, and buy insurance.

We’re a recognized InsurTech100 company with main focus on developing AI-first products and solutions for modern Insurance enterprises. For more details, please feel free to drop us a word at hello@mantralabsglobal.com

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What If the Sun Took a Day Off?

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Ever wondered what life would be like if the Sun took a day off? Picture waking up to an Earth shrouded in darkness, where temperatures drop dramatically within hours, plunging the planet into an icy chill. Plants, deprived of sunlight, would halt photosynthesis, leading to a food production crisis. Our reliance on renewable energy would face a sudden halt, causing widespread blackouts and chaos in cities across the globe.

A day without the Sun would throw our world into chaos! Luckily, that’s never going to happen (at least in our lifetime!). But this thought experiment underscores the Sun’s critical role in our lives and highlights why harnessing solar energy is so vital. While we’re increasingly turning to solar power, we are still missing out on capturing a massive amount of solar energy that falls on Earth every single day.

How Much Solar Energy Are We Missing Out On?

Every day, the Earth receives about 173,000 terawatts of solar energy from the Sun—more than 10,000 times the world’s total daily energy consumption. Despite this abundance, we only capture a tiny fraction of this energy. In 2023, solar energy accounted for just 4.5% of global electricity generation—a huge opportunity waiting to be tapped.

If we could capture just a small percentage of the Sun’s energy, we could power the entire world many times over. The total solar energy that hits the Earth in just one hour could meet the world’s energy needs for a full year. Yet, due to limitations in solar panel deployment, technology efficiency, and energy storage, the vast majority of solar energy goes unused each day.

As we improve solar technology and infrastructure, capturing more of this energy becomes not just a possibility but a necessity for a sustainable future. Let’s dive into how cutting-edge technology is making solar energy more accessible and efficient, helping to turn this untapped potential into real, usable power.

How Tech Makes Solar Adoption Easier

Customer-centric technology is revolutionizing the way we adopt solar energy. Imagine an app that allows you to simply point your smartphone at your house to estimate how many solar panels you need, their ideal placement, and the energy they can generate.

Here are the key benefits of this innovative approach:

  • Precision: By capturing images of your property through satellite, the app calculates the optimal placement of solar panels for maximum energy production. Studies have shown that precise placement can increase efficiency by up to 20%.
  • Customer Engagement: Users receive real-time insights into their energy production, helping them understand their solar power system better, whether they’re using Tesla solar panels, solar power generators, or even solar attic fans to optimize home energy usage
  • Seamless Experience: With user-friendly interfaces, consumers can easily monitor their solar systems remotely and receive updates on their energy output. This accessibility is crucial for encouraging the wider adoption of solar technologies.

The Tech-Driven Shift Toward Sustainability

As solar technology evolves, so do the solar panels themselves. Innovations like Tesla solar roof systems, flexible solar plates, and bifacial panels are redefining what’s possible in renewable energy. Even smaller systems—such as portable solar generators and solar air conditioners—empower homeowners to harness solar power efficiently.

Photovoltaic (PV)  panels, the cornerstone of solar energy, have seen incredible advancements, now boasting efficiencies of up to 22%. This means fewer panels are needed to produce more energy, making solar energy more effective for a wide range of applications, from solar shingles to off-grid systems.

Moreover, the push towards cradle-to-cradle sustainability is reshaping the industry. New solar panels are being designed with recyclability in mind, reducing their environmental footprint. Innovations in recycling technology now recover up to 95% of materials from end-of-life panels, ensuring that even the oldest solar systems contribute to a greener future.

While solar technology continues to advance, solar panels themselves are becoming more efficient and environmentally sustainable. Innovations such as systems, flexible solar plates, and bifacial solar panels are pushing the boundaries of what’s possible in renewable energy. Even smaller systems like portable solar generators and solar air conditioners are empowering homeowners to tap into the power of the Sun efficiently and sustainably.  Photovoltaic (PV) panels, the cornerstone of solar energy – now boast efficiencies of up to 22%​. This means a smaller array of solar panels for home or commercial use can generate more electricity. This makes solar energy systems more appealing and effective for various applications, from solar roof shingles to off-grid solar systems.

Moreover, the move toward cradle-to-cradle sustainability—where solar panels are built from materials that can be easily recycled—has gained traction. This reduces the environmental footprint even further. Innovations in recycling can recover up to 95% of materials from end-of-life panels, According to PV Cycle​, with room for improvement in recycling.

Making Solar Affordable and Accessible

Historically, one of the biggest barriers to solar adoption has been the cost. But things are changing fast. Innovations in financing models, such as Power Purchase Agreements (PPAs) and solar loans, have significantly reduced the financial burden of installing solar systems. According to the Solar Energy Industries Association (SEIA), the average cost of solar installation has dropped by over 70% in the last decade.

Couple that with federal and state incentives like the Investment Tax Credit (ITC), which provides a 30% tax credit on solar installations, and solar energy is more affordable than ever. Net metering programs, which allow homeowners to sell excess energy back to the grid, further enhance savings, making solar not only accessible but also financially rewarding.

Conclusion

The future of solar energy goes far beyond rooftop panels—it’s about making the entire solar experience intuitive, accessible, and sustainable. With smart apps and tech-driven tools, consumers can now manage their solar energy systems with just a few taps on their phones, making the shift to green energy simpler and more engaging.

At Mantra Labs, we’re at the forefront of this solar revolution. We’ve helped some of the world’s largest solar providers develop cutting-edge, customer-friendly solutions. Our mobile apps allow users to estimate solar panel needs, monitor system performance, and even track their environmental impact—all from the convenience of their smartphone.

Together, with innovative tech and a commitment to sustainability, we’re building a future where solar energy isn’t just an option—it’s the smarter, more accessible, and greener solution for everyone.

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