This week we delve into the world of ID validation, check out the latest broker sector deals and catch up with the latest cyber risks which could be a growing sector in 2022.
Start: LONGER LIFESPANS FOR PETS
The latest research from Petwise indicates that cats and dogs are living longer, which means they need specialised – and accurately priced – cover the various ailments that can affect a furry friend later in life. This is a market where you need data on typical problems by breed, or cross-breeding, as the fashion for owning various dogs changes.
Brokers can win new customers by offering app-based policies that track pet location, plus use virtual vets to resolve common problems. It’s a market driven by sentiment rather than asset values too, which means affinity marketing can be the route to success.
Run: AUTOMATED ID MEANS TIME SAVED
News from LexisNexis & Acturis this week on their ID validation for client onboarding, especially in the Commercial sector. Knowing stuff like who has significant control is on Companies House of course, but if a broker or insurer wants to know more details about an SME, or a start-up, then you might value some extra help.
That stuff matters when you’re trying to be 100% compliant on KYC and ESG rules, and IE reckons this automated, pre-approved, sort of verification before a quote is probably the way ahead when pricing Commercial products with a tight margin.
Grow: CYBER SECTOR WILL GROW – BUT WATCH YOUR REPUTATION TOO
Two items on cyber risks and ransomware this week, both act as warning signs for 2022. As Covid accelerates to rush to digitise every transaction remotely, the opportunities for hackers and data gatherers increases. In turn, that creates opportunities for brokers and insurers and IE sees the cyber market essentially splitting into many different streams of revenue next year.
A report by Veritas looks at the global trends in ransomware, or denial of service, which is a big deal for any company active in financial services too. The case study from CyberCube on the GoDaddy breach recently shows how having customer login details hacked creates massive risks. Think about it, your `policyholder’ could log in and make MTAs and it isn’t the real customer.
What we’re saying is that advising clients is a complex process that involves understanding the client’s biz risks, but then you have your reputation to think about – which means fighting cyber battles every week.
And Grow: LONG TERM RELATIONSHIPS ARE GOOD
A couple of interesting deals this week, with the six-year partnership between BeMoto and Minster Law highlighting how important it is for brokers to have specialist knowledge on hand. Many insurance niche products require years of experience to understand fully and so we say signing on the dotted line for several years is a smart move.
In other broker news, Xenia is buying Peter Hill Credit in Northampton, which is Xenia’s seventh acquisition in the last two and a half years. More here.
And Finally: BIG NEWS FOR INSURTECH START-UPS
If you’re in insurtech or an insurance start-up, the Seedrs Deal is one to watch. Republic and Seedrs announced today that they have entered into an agreement for Republic, the U.S.-based private investment platform, to acquire Seedrs, Europe’s leading online private investment platform, in a deal that values Seedrs at approximately 0 million (~ £75 million). This deal will create the first global private investment marketplace with offerings across North America and Europe.
On that note, see you next week.