- InsurTechs Are Transforming the Insurance Industry with Digital Technologies
- Just 3% of Insurtechs are Insurance Carriers
- InsuraGuest Offers Digitized Insurance Policies for Hospitality & Business Risks
- Business Owner Policy (“BOP”) Covers Risks for 130+ Class Codes, including Retail, Wholesale, Mercantile, Office and Business Services
- Small business owners make up 99% of U.S. Businesses
The U.S. insurance industry isn’t much different now than when Benjamin Franklin’s Philadelphia Contributionship first opened its doors to the public in 1752. But that is changing as a new breed of insurers arises. Insurtechs are claiming bits of the life and health insurance terrain – and much more – according to Bain & Company, a development the private equity firm has described as “Insurtechs on the Rise.” One such is InsuraGuest Technologies (TSX.V: ISGI), which is offering coverage for hospitality and business risks. The company plans to expand its product line as demand for Insurtech policies increases. Its unique capabilities as a master general agent (“MGU”) put it at a decided advantage in the brave new world of digitized insurance now emerging.
The application of new technologies to the old business of insurance has thrown up a wealth of opportunity. It’s possible now to be in the insurance business without being an insurer. The global survey of 655 companies undertaken by Bain, which excluded China where digitized insurance is far more advanced than in the West, discovered that just 3 percent of Insurtechs were actually in the underwriting business (http://ibn.fm/MbVJX). Most Insurtechs (59 percent of the survey sample) are simply providers of hardware, software and analytics to the insurance industry. Another 38 percent is made up of distributors, including web-based comparison sites or marketplaces. But InsuraGuest is more than just a provider of digital technology to the insurance industry or an intermediary between the insurer and insured. The coverages its policies provide are administered by its own InsuraGuest Insurance Agency, which is licensed to sell all lines of insurance in all 50 states and the District of Columbia.
InsuraGuest launched its foray into insurance with the Hospitality Liability Policy, a supplemental insurance product for hotels, vacation rental operators, and similar establishments (http://ibn.fm/ucZfM). The policy is meant to cover the gap left by General Liability policies by addressing guests’ claims on a primary basis. For example, it is commonly assumed that accidents occurring on a property are automatically covered by the hotel or property owner’s insurance, but that’s not always true. Unless an accident is clearly the fault of the hotel, General Liability insurance may not cover a guest’s accident or theft, or if the claim is under the property’s deductible amount, the hotel or property owners may not want to file a claim. Thus, InsuraGuest’s Hospitality Liability coverages address claims made by the guest on a primary basis.
With InsuraGuest’s Hospitality Liability coverages, property owners provide their registered guests with more comprehensive protection against the myriad of risks that may arise during their stay. The policy’s cost is automatically placed on the guest folio as a mandatory charge to protect the property from claims made by guests and their occupants if covered accidents or theft occur. The Hospitality Liability policy provides coverage for theft of personal property while in the hotel, as well as accidental medical expenses and accidental death and dismemberment, up to policy limits (http://ibn.fm/4G6nM).
Despite the enthusiastic response the Hospitality Liability coverages have received, InsuraGuest is not resting on its laurels. The company is now developing a new Business Owner Policy (“BOP”), which it expects to take to market by the Third Quarter of 2020. The BOP is being created with the needs of small business owners in mind and will serve over 130 class codes, including retail, wholesale, mercantile, office and business service classes. General liability class codes are assigned by underwriters as a way of classifying and grouping businesses by risk. Small businesses will be able to purchase the BOP online through a dedicated portal, www.InsureThePeople.com (“ITP”), now under development.
To start, the BOP will offer coverage for (i) building and business property, business income and extra expenses; (ii) breakdowns of equipment, including micro-circuitry; (iii) employment practices liability; and (iv) general liability protection, with occurrence limits that range from $300,000 USD to $2 million USD. Coverage for many other types of risks, including cyber risk, employee benefits liability, workers’ comp and others, will be added over time.
For more information, visit the company’s website at www.InsuraGuest.com.
NOTE TO INVESTORS: The latest news and updates relating to ISGI are available in the company’s newsroom at http://ibn.fm/ISGI
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