In an article last year we asked whether MGAs, program administrators, and others are ready to handle the shift to on-demand insurance with the rating and quoting software capabilities. The momentum continues into 2017 and beyond for on-demand insurance to meet our new world of sharing services with some big players in our industry taking part.
In 2016, Munich Re and Swiss Re both put the pedal to the medal in InsurTech through investments, partnerships and launching innovative insurance ideas in the market. According to CB Insights, Munich Re is the underwriter behind TROV, an MGA that provides coverage for assets and things you own, like a smartphone, laptop, bike, etc. You choose when you want coverage to become active and for how long. With one swipe of a finger, you can deactivate the coverage. Slice, also backed by Munich Re, supports the on-demand economy with a home-share insurance product for hosts using platforms such as Airbnb, HomeAway, etc. Munich Re has also invested in several IoT startups including Helium, Waygum, and Augury through its corporate venture arm, Munich Re/HSB Ventures, and backed P2P P&C insurance startup Lemonade with reinsurance capital.
Last year, Swiss Re launched InsurTech Accelerator in India to help start-ups develop their products and business case. InsurTech Accelerator also enables Swiss Re to connect with innovative, new companies to share their ideas and learning. For example, last year, Swiss Re invested in Sharecare, a digital health company helping people manage all their health in one place. The reinsurer has also invested in Digi.me, a UK-based startup that enables users to download their online social life and unify their social networks. With funding from Swiss Re, Digi.me aims to build a data-sharing platform that will give users more control over their content while also helping businesses gain access to user data. Instead of data harvesting, Digi.me promotes informed consent by letting people chose who and how they share their data.
The goal of these new models is to simplify the complexity of insurance for customers and to make purchasing coverage easier. Moreover, many of these start-ups are set up as MGAs, as they are ideal for testing and piloting new product innovations, programs, and markets. The have the partnerships and the core systems in place to do so. In fact, the MGA market, according to global investment management firm Conning, has continued to grow at a rate exceeding that of the property-casualty market overall and represents 15% of the commercial business.
NetRate Systems helps MGAs expand their footprint with their new product offerings with our rate-quote-bind software solutions. To learn more about our solutions, including our commercial lines rating system, give us a call at (877) 790-1114.