Page 41 - Insurance Times August 2019

who would step in sooner and integrate technology in their Cybersecurity poses another threat to the establishment of
processes. Regulations are a huge concern going on with the above mentioned automated digital systems. It is known
Insurtechs all around the globe. Although various that about 40% of the Fortune 500 companies are insured
governments appreciate that consumers are open to using against the threat of cybersecurity. However, the insurance
technology and saving their premiums, the use of cover is not sufficient to claim the full exposure due to the
technology is moving all away all the risks from the insurer's loss. There is a lack of underwriters in case of cyber risks and
end to the consumer's end. A regulatory framework named they rely on the underwriters of other verticals. With new
Solvency II was introduced in Europe in 2016. types of cyber attacks being discovered each year and the
level of sophistication of cyber attacks, the risks and exposure
This framework demanded certain parameters to be held by of businesses across the globe keeps on increasing day by day.
the Insurtech startups, namely, High Capital Requirements
where a startup needs to build up insurance reserves from The roadblock that lies against the defense from such cyber
the scratch such that in case of immediate settlements of attacks is that the businesses are not well educated in the
multiple claims, the startup does not go bankrupt and holds terms of cyber security. A couple of countries have taken
up due to the excess insurance reserves in the chest. Another huge hits on their respective GDPs (ranging from 0.5%-1.5%
requirement in the minimum SRC (Solvency Risk Capital) of their GDP) due to the rise in such attacks. Hence a need
where the insurance startups are expected to own additional for higher investments in cyber security has been an
amount of own funds on top of the insurance reserves. alarming call for varied businesses all over.

Players in the Insurtech Space

Sr. Name Parent Latest Investment Comment Logo
No. (in parent brand)
1 PolicyBazaar ETechAces Rs. 200 million It is an insurance web
Marketing & (June 2018) aggregator that lets you
Consulting Pvt Ltd compare Insurance plans
from different insurers and
allows you to buy them online,
and manage your all policies
and related documents at a
single place.
2 Paytm Life One97 Rs. 1.4 billion Registered on 21 Feb, 2018;
Insurance Ltd. Communications (May 2017) Along with Paytm General
Ltd. Insurance Corporation Ltd.,
the focus is on insurance
categories like health, motor
and others
3 Digit Digit Infoworks Rs. 44 million Trying to scope categories
Insurance (July 2018) like motor, travel, health,
electronics and home
insurance
4 Coverfox Glitterbug Rs. 22 million It plans to expand insurance
Technologies (April 2018) coverage into Tier II and
Pvt. Ltd Tier III cities, and address
women's needs as it tries to
diversify its product portfolio
5 Acko --- Rs. 12 million Amazon has invested in Acko
General (May 2018) General Insurance. This can
Insurance also allow the company to
take advantage of Amazon's
large pool of database

The Insurance Times, August 2019 41