Insurtech weekly: Parsyl; OneDegree; Sprout.ai; insurtech market growth – insuranceERM 

Lloyd’s Lab graduate completes $15m funding round

Who’s involved: US-based supply chain data platform and Lloyd’s Lab graduate, Parsyl, and re/insurer Ascot Group.

What’s happening: Parsyl has completed a $15m series A funding round involving Ascot Group.

Significance of development: Parsyl said the funding will allow it to expand into additional US states, having already established operations in US states including Alaska, California and Colorado, as well as in the UK.

In addition to the funding, the firm has launched a suite of cargo insurance products for perishable goods powered by its internet of things data platform.

OneDegree becomes Hong Kong’s first GI virtual insurer

Who’s involved: Hong-Kong based virtual general insurer, OneDegree, and the Hong Kong Insurance Authority (HKIA).

What’s happening: OneDegree has been granted a virtual insurance licence by the HKIA to become the country’s first independent technology company to offer non-life insurance via a digital platform.

Significance of development: The licence was granted as part of the HKIA’s fast track scheme launched in 2017 to promote the growth of fintech in the country.

“OneDegree is coming into this space afresh, with the singular focus of harnessing technology to transform insurance and deliver the best value for customers,” said Alvin Kwock, co-founder of OneDegree.

Sprout.ai receives $2.5m funding

Who’s involved: London-based automation claims platform, Sprout.ai, formerly known as Blockclaim, and venture capital platform Amadeus Capital Partners.

What’s happening: Sprout.ai has secured $2.5m in its second funding round.

Significance of development: Sprout.ai said the investment would enable it to develop a science and engineering team, expand its sales operations and move into the US market.

“This expansion is based on confidence that demand for insurance automation will be positively impacted by the current global pandemic,” the firm added.

Global insurtech market could surpass $10bn by 2025

Who’s involved: Market research firm researchandmarkets.com

What’s happening: The value of the global insurtech market could reach $10.14bn by 2025, according to a study from researchandmarkets.com.

Significance of development: The survey attributed the potential growth to the simplification of claims processes, improved client communication, as well as increased automation capabilities.

The research concluded the health insurance market is expected to have the highest growth rate as it is considered more advanced compared to sectors such as property and casualty insurance.

It added insurers are changing their approach to innovation as this was previously “not in their DNA”.

Paul Walsh