Startupbootcamp InsurTech partners with Old Mutual

London-based accelerator Startupbootcamp InsurTech (SBC) has partnered with Old Mutual Emerging Markets (OMEM) to complete its membership for the current cycle, Insurance Times can reveal.

The deal brings the number of SBC partners to 26 – 18 of whom are primary insurers – and follows XL Catlin and Zurich, who joined the programme last month. The current three-year cycle concludes in 2018 and will feature over 30 hand-picked insurtech start-ups who will undergo an intensive three-month course.

Old Mutual is the largest insurer in South Africa and operates in 19 countries across Africa, Latin America and Asia. This is the company’s first tie-up with an accelerator. In a statement it the move would help it “explore how to streamline, reorganise or redesign its business model, legacy processes and systems to meet customers’ changing needs.”

SBC has recently been forging closer ties with Africa. Last week it announced it would be setting up operations in the continent for the first time. It will include insurtech and fintech as areas of focus in a new programme in Cape Town.

Three of the current insurtech cohort at SBC InsurTech in London are also from South Africa: machine learning platform Emerge Analytics, agriculture drone data specialist Aerobotics, and personal injury arbitration platform, Nuva Law. They will be presenting at Insurance Times’ ID17 event next month, and at SBC’s Demo Day today. SBC has invested in eight teams from Africa in total, and in 2016 received 161 applications from African teams.

OMEM added it was interested in using SBC to explore possibilities around the sharing economy and micro-insurance. Two of the existing insurtech cohort, TikkR and C-Bien, offer micro or on-demand insurance while two others, events insurer Sharenjoy and bicycle insurer Insure A Thing use hybrid peer to peer models to leverage the power of communities and collaborative consumption.

This partnership gives us early exposure us to a myriad of emerging developments in insurtech across the globe

“This partnership gives us early exposure us to a myriad of emerging developments in insurtech across the globe,” David Marshall, chief commercial officer of OMEM, who will manage the partnership said.

“[It] makes it possible to explore various engagement prospects with the startups: ranging from observation to experimentation to partnership to investment.

The start-ups in turn have the opportunity to leverage our expertise, experience, resources and talent to build more compelling commercial propositions

“The start-ups in turn have the opportunity to leverage our expertise, experience, resources and talent to build more compelling commercial propositions.”

OMEM has also invested in fintech in India. Through a joint venture partnership with Kotak Mahindra it is a co-investor in Fincare, a microfinancing business. 

SBC’s other partners include Swiss Re, PwC, Lloyds banking group and Intesa. It said while it had interest from additional corporates to take part in the programme, the current level was optimal for serving the needs of both partners and the start-ups. Conversations with OMEM took place over several months.

SBC partners pay a fee to participate in the programme. Specialist insurtech fund Eos venture partners, whose founder Sam Evans sees the industry as “ripe for change”, also made £1m investment in the business last year. It has Insure A Thing and 2016 graduates RightInDem and Spixii in its portfolio.

Pedigree

SBC Insurtech runs the rule over thousands of insurance startups, and estimates the current global market in the region of 1,200, with over 100 based in the UK. It selects a handful to join the programme. Unlike most other accelerators, SBC takes a 6% stake in its start-ups. Other graduates include Buzzmove, Domotz and Covi Analytics. 70% of its graduates go on to receive further funding – more than three times the industry average.

It has 18 hubs globally, but London is the only Insurtech-dedicated location.

Partners have access to the startups within the SBC’s portfolio globally, and can use the network to scout for specific business needs. SBC also provides other services for its partners including three-day hackathons, open to the public, where the partners choose a theme (e.g. cybersecurity) and submit their problem statements for resolution.

While there remains some degree of market scepticism over the efficacy of multiple insurers working together, it is increasingly evident the benefits of collaboration outweigh any risks disclosing competitive advantages.

“We are delighted to welcome Old Mutual and its multifaceted brands onto the Startupbootcamp InsurTech programme,” said Sabine VanderLinden, managing director of Startupbootcamp InsurTech.

We look forward to collaborating with a leading financial services group to drive innovation across Africa and key emerging markets

“InsurTech startups are keen to help leaders in the insurance sector validate their propositions and develop exciting projects. We look forward to collaborating with a leading financial services group to drive innovation across Africa and key emerging markets.”