VANCOUVER, BC // Insurtech (insurance/technology) venture investments rose to new record highs both in the second quarter as well as in the full first half of 2021, according to a recent report by Willis Towers Watson, a leading global advisory, broking, and solutions company.
The sector amassed a staggering $7.4 billion in Investments during H1 – more than what it attracted in all of last year.
The thick of new investments happened during Q2, which recorded 162 new deals for roughly $4.8 billion. This represented a 210% increase from the same period last year. Notably, $3.3 billion were raised during 15 mega-rounds of $100 million or higher.
The pandemic has put the sector at large on a fast lane for growth, and major players from other sectors are making the switch over to join the action.
Seasoned executives join the industry
US-based operator Lemonade (NYSE: LMND) uses AI to distribute renters’, homeowners’, and pet health policies in the United States, as well as contents and liability policies in Germany, the Netherlands and France. They recently strengthened the company roster with two notable additions from the tech sector.
LMND added two new key players from the tech sector: Irina Novoselsky and Silvija Martincevic,
Novoselsky is a tenured technology executive, with a record of driving growth and operational efficiency for complex global organizations. She currently serves as CEO and board member for CareerBuilder, a talent acquisition media and SaaS business.
Novoselsky focused much of her career on leveraging “disruptive technologies to create better customer experiences.” LMND’s position as an industry disruptor was a natural fit.
Silvija Martincevic is the CCO of Affirm, a payments technology company focused on financial products. She oversees commercial, partnership, and marketing strategy.
“I am a firm believer that companies can have a mission and product that prioritize the consumer while yielding strong business results, and LMND is a prime example,” said Martincevic.
In Canada, world-class digital marketer Reed Wright recently joined InsuraGuest Technologies Inc. (TSXV: ISGI) (OTCQB: ISGIF), an insurtech company that’s quickly building its footprint in the hospitality sector. InsuraGuest, their proprietary insurtech platform delivers digital short term renters insurance to hotel and vacation rentals, which automatically attach to every reservation for a nightly fee. The InsuraGuest policy is the only product on the market that delivers a no-fault primary medical policy with a property rider to the reservation which protects the property from claims made by guests.
Wright founded notable digital marketing agency Axis41. In his time there, he served as technical servicer partner for accounts such as Adobe, American Red Cross, Steamboat Resort Properties and BMW USA. The group also created online platforms for major hospitality names like Grand America Resorts & Hotels, Sun Valley Resort, Park City Mountain Resort, and more.
Axis41 was acquired by Dentsu International. Wright remained in the organization as Senior VP of Marketing Platforms, where he created the Dentsu International lead generation team – focused on technology integrations, sales, and marketing.
“When I first learned about ISGI back in early 2020, I immediately loved the idea of revolutionizing how hospitality and guest insurance and other digitally delivered products gives direct access to consumers using its proprietary digital platforms,” he said in the press release announcing his appointment. “The company seamlessly delivers its Insurtech products to simplify and expedite delivery to hospitality properties and guests who need short-term insurance for lodging and events. I wanted to be a part of InsuraGuest as they transform the digital insurance market through Insurtech solutions, so, when I was offered to join as president, I jumped at the chance.”
He’s confident that his extensive experience in digital marketing, technology and hospitality will drive ISGI to the next level.
InsuraGuest (TSXV: ISGI) (OTCQB: ISGIF) granted him 1.6 million options at $0.35 a share, vested over time and on achievement of revenue milestones.
A landscape ripe for growth
The insurtech sector is attracting major capital and top-tier talent this year, and the second half is sure to bring in more high-profile outsider signings. However, ISGI’s will surely remain above the pack in terms of impact – a marketer of Reed Wright’s caliber could be just what this company needs to make the market take notice of its currently undervalued position.
ABOUT INSURAGUEST
InsuraGuest Technologies Inc. (TSXV: ISGI) (OTCQB: ISGIF) is an insurtech (insurance + technology) company that’s disrupting the insurance landscape by utilizing its proprietary software platform to deliver digital insurance to hotel and vacation rental properties. The platform automatically attaches it insurance product to every reservation for a nightly charge. It also offers agency/broker software platforms to insurance agents and brokers, and has signed up major insurance broker firms like Hub International to sell its products.
COMPARABLES
Lemonade (NYSE:LMND) offers renters, homeowners, and pet health insurance in the United States, contents and liability insurance in Germany and the Netherlands, and renters insurance in France, through its full-stack insurance carriers. Powered by artificial intelligence and behavioral economics, Lemonade set out to replace brokers and bureaucracy with bots and machine learning, aiming for zero paperwork and instant everything.
