Boost Insurance

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Boost Insurance Summary

Boost Insurance operates in the InsurTech market space, which has only been catered by technology startups in the last few years. It is an $500 billion per year market expected to hit $2 trillion by 2025, with lots of space for innovation, where start-ups delivering custom-catered solutions can thrive if they can overcome industry challenges such as the technology gap and slow go-to-market processes.

Boost Insurance's top three global competitors as analyzed by a combination of total funding raised and estimated revenue are QuanTemplate, Extraordinary Re, and Analyze Re.

Below you'll find a detailed overview of the InsurTech segment focusing on its challenges and opportunities, as well as our findings on Boost Insurance's and its previously mentioned top competitors' products offered, reinsurance partners, competitive advantages, and messaging strategies, which was also included in the linked spreadsheet.

METHODOLOGY

A detailed research was conducted in the overall state of the reinsurance InsurTech space, in which Boost Insurance operates, focusing on the overall industry's challenges and opportunities. Industry research reports and papers featuring the state of the market where addressed. The focus was put on Boost Insurance's competitors as well as the company itself.

To find Boost Insurance's three top reinsurance competitors, a list of 80 emerging insurance tech companies released by research and advisory firm Medici, part of FinTech, was analyzed. Relevant companies similar to Boost Insurance were retrieved and short-listed. Specialized databases such as AngelList, Crunchbase, and InsurTech were scoured as well in order to find other relevant reinsurance startups. The final list of potential companies was evaluated in detail in order to find which of them were relevant competitors based on the criteria that, like Boost Insurance, they should also be B2B startups servicing the reinsurance industry by offering mainly technology infrastructure products.

Through this process, we discovered that Extraordinary Re, Procede, Eazyre, Sandton Re, Quantemplate, Outshared, Chainthat, and Analyze Re qualify as Boost Insurance competitors.

Since most are all small private startups that do not publicly release their revenue information, it was not possible to evaluate all the companies based on that metric alone. However, since total funding amount raised by each company is available to the public, a combination of the two factors was used to determine the "top" three competitors for Boost Insurance. They are QuanTemplate, Extraordinary Re, and Analyze Re.

Finally, a focused research was performed on these firms' websites, their media coverage mentions, press releases, and company profiles on specialized databases such as Crunchbase, AngelList and InsurTech, looking for information on the products they offer, their reinsurance partners, competitive advantage and messaging or advertising tactics. Limited information about potential partnerships for Analyze Re was available in the public domain after intensive research through the channels noted above, so we concluded that this data is either secured for privacy reasons or non-existent because the company does not have partnerships to report. Our findings are detailed below.

insurtech OVERVIEW

It is only now, after many years of lagging behind the technology momentum, that high-tech start-ups are entering the re-insurance market and beginning to impact the way insurers and re-insurers do business. InsurTech focuses on innovative and efficient solutions with the customer in mind, which seem to be just what the market needs in today's times of falling profitability. There is a big market for innovation, with plenty of need for technology to help redesign the way products are created, distributed, and priced. The customer journey needs to be optimized and costs must be reduced if insurance and reinsurance companies are to regain significant profitability.

InsurTech's tools include artificial intelligence, big data, robotics, and the internet of things (IoT), which are focused mainly on claims handling and distribution, as well as discovering how to leverage analytics and data to allow carriers to gain more meaningful risk insights and, eventually, get their reinsurance and insurance propositions to shift from protection to prevention.

It is no surprise that the change in consumer expectations is forcing insurance and re-insurance companies to modernize themselves and "ride the technology train", as new customers, such as millennials, expect their insurance products to be readily available through their smartphones, be flexible, and offer significant value for the money.

Re-insurers work with InsurTech firms to support their businesses, improve performance and utilize the innovations they are in so much need for.

MARKET Opportunities

The fact that the market was in so much need for technology innovation is the greatest opportunity InsurTech was presented with, together with the fact that reputable industry players are embracing and investing in their startups and disruptive technologies.

The extremely competitive nature of the InsurTech market has well-constructed strategies that involve timing investments and being able to identify the best sources of funding to prospect and secure financing. The planning and access to the best intermediary advice also helps obtain solid funding credentials, as valuable, real-time information is the most important tool for companies looking to succeed in any competitive market.

Furthermore, the need to improve the efficiency of the customer journey is key for technology advancement in the industry.

In today's fast-changing environment, re-insurers need to be unique and innovating in order stand out from the competition and succeed. Additionally, operational efficiency needs to be optimized. Both of these points are key factors that can be improved through the implementation of technology, which makes for an ideal ground for start-ups to offer custom-catered solutions that are designed to address the insurance market's needs.

More opportunities for growth in the insurance market include the need to optimize the way in which emergency risks are predicted, which requires extremely accurate predictive analytics driven by technology and data processing tools. "Multi-stakeholder crowdsourcing platforms" designed to collect both internal and external information from clients, underwriters, and risk specialists, confirm a global systematic approach intended to identify and pin-point weak signals of emerging risks as soon as they begin to present themselves.

Risk understanding itself also needs to be developed upon, as re-insurers need to be more flexible so that they can better understand complex new risks and the needs of clients as they are dealing with them. A trial-and-error approach can be seen as an opportunity to grow as long as the necessary tools to be able to learn from experience through reliable metrics and data compilation are in place.

Finally, the sheer amount of effort, time and capital it would take for insurers to develop proprietary solutions to address their challenges opens up the market for companies to step to the plate and offer the necessary solutions, while being confident enough in the value that they can provide to address their target market's needs.

Opportunity for companies is more than extensive in a market that is worth $500 billion per year with expectations to reach $2 trillion by 2025, as foretasted by Analize Re.

INDUSTRY CHALLENGES

Like with every uncharted territory, the technology gap between most insurance and reinsurance companies and startups make the implementation of InsurTech tools both challenging and time-consuming. The technology gap makes integration processes lengthy and slow-paced, as outdated technologies do not blend easily with the advances of the present day. It is necessary to go through many documentation pages and to engage in time-consuming back and forth conversations with implementation teams in order to achieve results.

This makes the go-to-market process incredibly slow for InsurTech companies, which face over 24 months of expected implementation time, in a race that leaves many startups behind.

Because increased operational efficiency designed to improve returns was vital for the market to survive, the application of solution platforms is redefining what insurance underwriters and actuaries can achieve. Analyze Re has turned this challenge into an advantage by creating a solution that is simple to buy and easy to use.

Capital funding access was also limited, as legacy IT issues and the big investments required to maintain antiquated systems diverted time and resources away from any plans to modernize infrastructure. Extraordinary Re faced this challenge head-on when it first started out, as a solution that had no track record and no way to prove itself made investors reluctant to participate.

BOOST INSURANCE OVERVIEW

This InsurTech development platform was specially created to provide back-end infrastructure to digital platforms, emerging InsurTech startups and innovative insurance products.

It acts as an appointed manager general agent for A-rated re-insurer and carrier partners, selecting the highest-potential digital platforms and InsurTech startups to act as program sub-agents (partners) under Boost's umbrella. While Boost takes care of the entire back-end for their partners, they are free to focus all of their efforts on growing their business.

Its funding was of approximately $3M, and it has an estimated revenue of under $1M.

Its main product is its insurance-as-a-service platform catered both to re-insurers and InsureTech.

Via investment, it is partnered with Nephila and State National.

Boost Insurance's competitive advantage, as described in this Medium post, consists in the fact that it brings together everything that InsureTech startups might need under the same platform, to boost their partnership programs and vet opportunities.

For reinsurance and insurance companies, which are heavily pitched by startups on a daily bases, it simplifies the process of evaluating them for potential partnerships. Additionally, it provides instant access and insight into innovation and product trends, freeing internal resources from focusing on finding them.

Boost Insurance's messaging mainly points towards the fact that the platform has already done all the "leg work" to solve the main problems that insurance industry entrepreneurs face, providing an integral back-end solution that allows them to focus on their customers. As for re-insurers, Boost Insurance positions itself as a solution that can allow them to keep up in today's fast-moving environment, while also pointing out that their solution intends to tear down the entry barriers for innovators to access the insurance industry through technology and improved cultural alignment.

The problems it claims to address are data flow and integration issues between low-tech insurance companies and high-tech startups, the slow pace at which new products go to market, and the cultural disconnect between startups and incumbents.

Boost Insurance's messaging describes product development as "extremely complicated and awful" for low-tech insurance companies, and presents itself as a specialized ready-made solution that can take care of everything for their clients, facilitating access to regulated insurance paper and capital.

BOOST INSURANCE COMPETITORS

QuanTemplate

This company is dedicated to taking the latest data innovations and analytics to the reinsurance industry through a SaaS platform that allows organizations the use of data to drive financial performance and optimize costs.

They achieve this via tools powered by machine learning and proprietary insights that lead the way towards digital transformation and competitive advantage unifying data points, integrating business insights, and solving data integrity and compatibility issues to provide analytics and precise market opportunity information meant to drive profitability. The company was named European FinTech Top50 and Global InsurTech Top21.

It raised a total funding of $13.6M and has an estimated revenue of $4.7M.

Its key product is a powerful all-in-one suite designed for insurance professionals.

Quantemplate partners with insurance company Allianz.

The company presents its competitive advantage as facilitating the digital transformation for insurers while helping them unlock strategic value. Quantemplate focuses on how insurance leaders in the life and P&C sectors signed up for multi-year agreements with them, driving credibility and positioning themselves as industry leaders. They also strongly communicate that they understand the needs of the insurance sector (they are industry experts) and the fact that their solution is specially designed for re-insurers and insurers.

The messaging strategy the company engages in focuses on its flexibility and how easy it is for the non tech-savvy to use their solution. They position themselves as a tool that can help automate and streamline the processing of SoVs, as well as accelerate claims data processing, dealing with data challenges of any size and shape. Their solution is advertised as a tool to unlock business expansion and reduce costs, and described as a "non-invasive" way to connect data from various systems in one place.

Extraordinary Re

This California-based company trades insurance liabilities through an online platform run by exchange operator Nasdaq catered to investors, traders, and re-insurers.

Its estimated revenue is $12.6M and it raised a total funding of $3.16M.

The main product that Extraordinary Re features is, as described above, an online platform designed for trading insurance liabilities.


Extraordinary Re's competitive advantage is presented as a new pathway for "allowing investors to reallocate insurance risks among themselves in a familiar format, tested and powered by Nasdaq technology".

They present themselves as a "low-friction way to access insurance risk investments through a technology platform", featuring a matching engine that also enables secondary trading of set risks, and transfer a broad range of risk classes towards capital market investors.

As for messaging, it claims to be "the liquid marketplace for $22 trillion of insurance liabilities". It heavily focuses on how it solves problems emphasizing on the "solution" aspect of the platform throughout its messaging. For traders, it claims to allow access to "a whole new asset class with positive alpha and low correlation". For institutional investors, it presents itself as a brand new type of ILS featuring exposure to more perils than property catastrophe. Finally, for insurance companies and intermediaries it advertises as a more efficient and simpler access to capital markets for risks that are under-supported by current models, offering more and new opportunities to obtain free revenues.

Analyze Re

Analyze Re provides a SaaS analytics platform in real time which is designed to support the global insurance and reinsurance industries in determining pricing, as well as strategic and roll-up planning of reinsurance portfolios and contracts. Their solution specializes in portfolio risk management and pricing optimization through the analysis of high volume data to achieve responsive risk-based analytics in real time, vital for portfolio-based decision-making.

The company had two funding rounds and gathered a total of approximately $10.5M, while its revenue is $2.8M.

The main product Analyze Re features are real-time analytics.

No partnership information for this company was found to be available in the public domain after scouring industry databases, the company's website and news articles focused on the reinsurance niche. We concluded this might be either because of privacy reasons or due to the fact that no partnerships exist.

Analyze Re's competitive advantage is providing the fastest portfolio scaling analytics available, while also sharing how to deploy them to boost the effectiveness and productivity of teams.

The messaging this company uses focuses on how easy their solution makes the real-time evaluation of different risk perspectives, offering powerful capabilities to its client's underwriting teams in real-time, designed with the intention of making pricing decisions easier and more profitable. They strongly communicate how easier, faster and more accurate portfolio and pricing decisions become when using the solution helping their clients price complex contracts in a way that boosts profitability. Analyze Re markets itself as a tool designed to help its clients through the analysis of otherwise complex to process information with the goal of improving return rates.

CONCLUSION

To conclude, a detailed overview has been provided on Boost Insurance's InsurTech market space focusing on its challenges and opportunities, as well as its top three global competitors (QuanTemplate, Extraordinary Re, and Analyze Re) which were analyzed by a combination of total funding raised and estimated revenue. More information on their products offered, reinsurance partners, competitive advantages, and messaging strategies was detailed and included in the linked spreadsheet.


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Sources