Table of Contents
01 The Insurance Monthly Roundup

02 Most Innovative Insurtechs of 2023

03 How has the adoption of usage-based insurance grown in India?

04 Cyber Insurance In India

05 Decoding the Insurance Needs for SMEs 

News & Events

Mantra Labs Inaugurates its brand new HQ in Whitefield, Bengaluru.

Mantra Labs inaugurated its new headquarters at Camelot Tech Park, Whitefield. The site will serve as the headquarters of its global operations and will provide support to its existing facilities in Kolkata, Gurugram, and North Carolina. 

“The new office is designed to promote cross-functional collaboration and teamwork, cultivate inclusion, and increase business agility while prioritizing employee wellbeing. We are super excited to move into our new home, where we aim to build and grow our team of technology tinkerers A.K.A Mantriks, and continue to build Intelligent Experiences for Global Enterprises!”, said Mikhail Mitra, Chief Strategy Officer, Mantra Labs.

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The Mantra Podcast Season 2 ️

Tune in to the 1st episode of Mantra Podcast Season 2 with Sumit Bhatnagar, CEO of GreenBrilliance, and Shawn Williams, Director of Business Development in the U.S., Mantra Labs.

Watch the full video! ️

Big Win For Mantra At the 2nd India DevOps Show

Mantra Labs won the ‘Best Cloud Project in DevOps – IT Sector’ award at the 2nd India DevOps Show organized by Quantic Business Media Pvt. Ltd.

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The Insurance Monthly Round-Up

A quick roundup of the month’s insurance and insurtech news.

(India & Global)

• Affordability issues, higher premiums, challenges in comprehending health insurance terms, and inadequate funds emerged as the main obstacles for people who want to buy health insurance, says policybazaar.com’s latest report, titled ‘How India buys Insurance’.

• RenewBuy received $40 million from Dai-ichi Life in its recent funding round.  The funds will be utilized to expand its footprint in Asia and enhance its product offerings and technological capabilities.

• The global insurtech market is projected to grow significantly from US$ 8.6 billion in 2023 to US$ 34.7 billion by the end of 2033, increasing rapidly at a CAGR of 15%. One of the key drivers behind this expansion is the continuous increase in insurance claims worldwide

• MyCover.ai has successfully concluded a pre-seed funding round, securing US$1.25 million. The funds will be utilized to strengthen its internal operations and attract top technology talent. Additionally, the company will make substantial investments in its exclusive technology and strategically extend its presence to other African markets.

• Microsoft partnered with Singlife to support promising InsurTech startups. The objective of this partnership is to empower these emerging InsurTech ventures with the capabilities of generative artificial intelligence (AI).

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Blog

Most Innovative Insurtechs of 2023

The insurance industry has experienced significant transformations in recent years, largely driven by technological advancements and the rise of insurtech companies. These innovative startups are upending conventional insurance practices by utilizing cutting-edge technologies to boost customer experiences, streamline operations, and offer personalized insurance solutions. 

Here’s a look at the top 7 innovative insurtechs of 2023 (in no particular order):

• Propeller is a US-based InsurTech that provides insurance companies, consultants, and their clients with a completely automated end-to-end underwriting platform. The firm has a white-labeled URL for brokers and agents that contains around 7,000 surety bond obligations allowing both parties to get quotes, make payments, and receive their bonds in a matter of minutes.

• Kita is a London-based company that provides a customized portfolio of carbon insurance solutions by linking insurance and carbon markets. The company offers a portfolio of insurance products that lower carbon risk, allowing high-quality carbon projects to scale up.

• Goose is a Vancouver-based company that provides easy, affordable, insurance solutions via mobile-first self-serve platforms. Customers may purchase Life Insurance, Cancer Insurance, Critical Illness Insurance, Travel Insurance, and more using the Goose Insurance Super-App in just a few seconds without the need for a medical exam or an agent.

• Thimble is a US-based insurtech platform that enables small businesses like handymen, landscapers, DJs, artisans, and event planners to purchase insurance coverage by job, month, or year using an app, website, or phone. The users can also modify, pause, or cancel it right away regardless of whether the business is strong and also pick how they wish to pay before upgrading once the business truly takes off. 

• Wefox Holding AG, a Berlin-based firm provides customers with an insurance check tool that identifies the risks they face. The users receive an accurate percentage across 4 separate categories that reflect their individual level of risk.

• NEXT Insurance is a California-based firm that provides small businesses like pet care providers, Amazon sellers, engineers, architects, etc. with specialized and affordable insurance solutions.
• Dacadoo is a Swiss tech firm that combines mobile technologies, social networking, gamification, etc., to help users with their health and well-being through personalization. 

Read the blog here.

How has the adoption of usage-based insurance grown in India?

The adoption of usage-based insurance (UBI) in India has steadily grown in recent years. While it is still a relatively new concept in the Indian insurance market, several factors have contributed to its increasing popularity:

1. Technological Advancements: The widespread availability of smartphones and the advancement of telematics technology have made it easier and more cost-effective for insurance companies to implement UBI programs in India. Telematics devices and smartphone apps can now accurately collect and transmit driving data, enabling insurers to assess risk and calculate premiums based on individual driving behavior.
2. Cost Savings Potential: One of the critical drivers for adopting UBI in India is the potential cost savings for policyholders. By incentivizing safe driving habits, UBI policies offer the opportunity for individuals to lower their premiums based on their driving behavior. This appeals to cost-conscious consumers who are looking for personalized insurance options.
3. Increasing Awareness of Road Safety: India has been actively promoting road safety initiatives and campaigns in recent years to address the country’s high number of road accidents. UBI aligns with these efforts by encouraging responsible driving behaviors and offering rewards for safe driving. As individuals become more aware of the importance of road safety, the appeal of UBI policies grows.
4. Shift in Consumer Preferences: With the advent of digital transformation and changing consumer expectations, there has been a shift in the way people perceive and interact with insurance. Customers now seek personalized and flexible insurance options that align with their lifestyles and preferences. UBI caters to this demand by offering tailored coverage and potential cost savings based on individual driving patterns.

While the adoption of UBI in India is still relatively modest compared to traditional insurance policies, it is expected to grow further as more insurance companies introduce UBI offerings as consumer awareness and acceptance continue to increase. 

Read the blog, here.

Cyber Insurance in India

Cyber insurance is still a relatively new concept in India, and as of now, the penetration of cyber insurance in India is low. However, there is a growing awareness of insurance in organizations. According to a recent report by PwC India and the Data Security Council of India (DSCI), India’s cyber insurance market is expected to grow at a CAGR of 35% from 2021 to 2025. 

Cyber insurance policies are classified into various types as per the coverage they provide: 

• Data breach coverage – Data breach coverage can help cover the costs associated with investigating the breach, notifying affected parties, providing credit monitoring services, and restoring lost data.

In India, ICICI Lombard is a prominent company covering this breach and business interruption coverage. 

• Cyber extortion coverage – Cyber extortion is an attack where attacker threatens to harm an individual or business unless the ransom is paid. In these attacks, the attacker may threaten to release sensitive information, disable computer systems, or launch a distributed denial of service (DDoS) attack.

One example of an Indian insurance company that provides cyber extortion coverage is HDFC ERGO. Their cyber insurance policy covers losses resulting from cyber extortion, including the costs associated with ransom payments, hiring a security consultant, and crisis management expenses.

• Business interruption coverage – Business interruption coverage can provide financial assistance to businesses that experience a cyber attack causing their systems to go offline and preventing normal business operations.

Other common insurances include Liability coverage, Crisis management coverage, Legal coverage, and Social engineering fraud coverage. 

Globally, the cyber insurance market is expected to grow at a CAGR of 27% from 4.2 billion USD to 22.8 billion USD from 2017 to 2024. In India, it remains at a nascent stage. However, with growing awareness, the penetration has seen a substantial Y-o-Y increase. 

As Mantra Labs recently worked with India’s largest private insurance company to improve their cyber insurance journey, we understood that the key focus was to be on ensuring customers understand the risks involved and the impact of various benefits/add-ons provided. 

In order to improve the offtake, insurers need to focus on customers’ digital experience while selecting an insurance plan. 

Read the blog, here. 

Decoding the Insurance Needs for SMEs

Digitizing insurance experience for SMEs is a vital step that insurance companies must take to gain a competitive edge in the market. SMEs are the backbone of any economy and must be adequately protected against unforeseen events that may affect their businesses. 

• An exclusive platform for all insurance needs.

In the last few years, many insurance companies in India realized the pain points of SME owners, especially post-Covid -19, and have started focusing more on SME customers. 

Mantra Labs worked with APACs leading life insurance firm to develop an exclusive digital insurance platform and transform the experience of SME owners. 

• Customized Products: Tailored Coverage Options 

Digital platforms have enabled insurance providers to offer specialized coverage options specifically designed for the unique needs of SMEs. Whether it’s comprehensive business insurance, professional indemnity, or cyber risk protection, SMEs can now access policies that cater to their industry-specific requirements. This customization ensures that SMEs receive the necessary coverage while optimizing their insurance investments.

• Faster claims management: 

Leveraging technology, SMEs can now submit claims online, track their progress, and receive quicker settlements. Automation and integration with relevant data sources enable insurers to expedite claims processing, enhancing the overall experience for SMEs.

As customer experience becomes more critical in the insurance industry, digitizing the customer experience has become a necessity if insurance companies want to attract and retain SME customers.

Read the blog, here.