The coronavirus pandemic caused complete disarray in the global economy in 2020. The world came to a halt, and businesses faced unprecedented hurdles to operate - if they could.
The landscape called for comprehensive, innovative, and reliable solutions for almost all service industries. And the technology sector was ready and listening.
Tech experienced an acceleration process like the world has rarely ever seen before - a sector with continuous exponential innovation got metaphorically catapulted five years into the future by the demand it experienced.
Insurance technology (“insurtech” for short) was one of the faster growers within the sector. After a lull in action in Q1 2020, activity rebounded throughout the rest of the year - as showcased in a report by insurance-focused multinational law firm Clyde & Co.
Joyce Chan, Clyde & Co Partner in Hong Kong said: “While insurtech investment dived in Q1 due to Covid-19, it rebounded in the second quarter. Although investors have already become more selective since last year, a trend that the pandemic will strengthen, high-quality tech offerings are still attractive, provided they can prove their worth. Start-ups now reaching maturity with a proven track record are ripe for acquisition and we expect this to be a key deal driver in H1 2021.”
The insurtech sector was, knowingly or not, barreling towards an era where their solutions would become cornerstones of the economy, in a charge led by key players such as Fairfax Financial Holdings Limited (FFH.TO) and Berkshire Hathaway Inc. (BRK-A).
While 2020 ended with a revitalization of the industry helmed by its frontrunners, innovation within it is far from tapped out. Several earlier-stage companies rode the wave and primed themselves for substantial growth over 2021 - such as the recently - IPO’d Lemonade, Inc. and InsuraGuest Technologies, Inc.
Younger players, larger opportunities
Lemonade (NYSE: LMND) is a US-based firm that uses AI to distribute renters’, homeowners’, and pet health policies in the United States, as well as contents and liability policies in Germany, the Netherlands and France.
The company IPO’d in 2020 with a $1.6 billion valuation. While its 2019 valuation weighed the company at $2.1 billion, it was nonetheless a record-breaking IPO debut in one of the most challenging years in recent memory.
On the other hand is Canadian-based InsuraGuest Technologies (TSXV: ISGI) (OTCQB: ISGIF) - a company that’s disrupting the insurance landscape with its proprietary software platform. Their insurtech model distributes digital insurance to multiple sectors. They boast a simple yet effective tagline: they’re preparing a landscape where “insurance should be bought, not sold”. The objective is that hotels and vacation rentals can avoid making claims on their General Liability policy, thus keeping premiums manageable. Instead, they’ll use InsuraGuest’s niche’d down policies that cover for exactly what they may need.
ISGI recently closed a major vendor partnership with Guesty, the world’s leading end-to-end short-term rental property management software. Guesty serves some of the biggest rental platforms in the world, such as Airbnb, HomeAway, and TripAdvisor.
Signs of an industry on the rise
As of late, both companies attained major landmark events.
LMND revealed that it finished 2020 with over a million users. Comparable companies in the space such as State Farm, GEICO and All State took anywhere between 15 to 45 years to attain that userbase – while Lemonade did it in a mere 1500 days.
“We’re proud to hit the one million customer mark so early in the life of the company,” said Shai Wininger, Lemonade co-founder and COO. “With every new customer, our system grows smarter, our underwriting gets better, and our prices become more accurate and fair. At Lemonade, one million customers translates into billions of data points, which feed our AI at an ever-growing speed. Quantity generates quality.”
The company recently announced it intends to offer 3,000,000 shares of its common stock for sale in an underwritten public offering. Another 1,524,314 shares are expected to be sold by selling stockholders.
InsuraGuest landed a homerun of its own: a finalized partnership with an established property management giant.
Guesty offers an end-to-end solution to simplify and automate the complex operational needs of short-term rentals. The platform allows users to manage listings from multiple online travel services like Airbnb, Booking.com, Vrbo, Agoda and TripAdvisor. It serves as a one-stop-shop for rental property managers that handle listings on multiple services.
It can’t be ignored – one name rises above the fold among Guesty’s many major integrations: Airbnb (NASDAQ: ABNB).
The US-based global temporary rental platform IPO’d in late 2020, boasting impressive stats:
- 5.5 million listings across the globe
- 100,000 cities with active listings
- 220+ countries and regions with listings
At the time, 50 million shares were issued with a $68 price tag.
ABNB now trades at $189 per share – reaching a $112 billion market cap.
A massively popular platform and industry leader is about to integrate and offer ISGI policies across the world - just as the hospitality industry starts to resurge.
Streamlined, efficient, simple
Guesty users - which include professional hosts, property management companies and aparthotels across the globe - will be able to opt-in for InsuraGuest Hospitality Liability coverage. If they accept, they are presented with an InsuraGuest form within the platform – and requests are processed instantly.
Once deployed, platform users set InsuraGuest as their primary coverage for guest claims. The policy is automatically included in the booking form, and the minimal cost is passed onto the customer. Coverage includes accidental property damage, theft of guests' personal property while at the rental, as well as accidental medical expenses and accidental death and dismemberment.
Guesty’s Director of Strategy & Business Development, Alon Eitan, commented on the partnership: "We are excited to launch our relationship with InsuraGuest. Providing our customers with access to vendors like InsuraGuest helps protect their properties while protecting their guests."
ISGI CEO Douglas Anderson also shared his thoughts: "Being able to work with the world's leading end-to-end short-term rental property management software company means InsuraGuest will have access to market its Hospitality Liability product to property managers who use Guesty to manage their short-term rentals; rentals which are listed on multiple platforms such as Airbnb, HomeAway, Vrbo, TripAdvisor, Agoda, and Booking.com".
The Guesty and InsuraGuest partnership has all the makings of a winner: excellent technology, involvement of industry leaders and a market hungry for solutions that fit the adapted way of living that the pandemic has brought on.
ABOUT INSURAGUEST
InsuraGuest Technologies (TSXV: ISGI) (OTCQB: ISGIF) is an insurtech (insurance + technology) company that is disrupting the insurance landscape by utilizing its proprietary software platform to deliver digital insurance to multiple sectors. We're transforming the way insurance is delivered with the revolutionary idea that insurance should be bought, not sold.
Legal Disclaimer/Disclosure: While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our article is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment. Furthermore, it is certainly possible for errors or omissions to take place regarding the profiled company, in communications, writing and/or editing. Nothing in this publication should be considered as personalized financial advice. We are not licensed under any securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this article is not provided to any individual with a view toward their individual circumstances. Baystreet.ca has been paid a fee of one thousand nine hundred dollars for InsuraGuest Technologies advertising from Castle Rising Media. There may be 3rd parties who may have shares of InsuraGuest Technologies and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this article as the basis for any investment decision. By reading this communication, you agree to the terms of this disclaimer, including, but not limited to: releasing Baystreet.ca, its affiliates, assigns and successors from any and all liability, damages, and injury from the information contained in this communication. You further warrant that you are solely responsible for any financial outcome that may come from your investment decisions.
