YOUNG & INSURED
Insurance companies target Millennials and emerging markets
Young people don’t tend to view the insurance industry as the sexiest business, but traditional insurance companies are trying to catch their attention by popping up in places where youth are enjoying themselves, like festivals, and supporting their alternative life paths, like recognizing the real need for some to live at home with their parents. New insurance companies are emerging to offer young people access to insurance that is simpler and sexier as well.
This pink-themed insurance company targeting Millennials recently raised a $120 million round of funding, double that of their previous round. The New York-based startup began selling homeowner’s and renter’s insurance in its home state and have since expanded to 25 more. Lemonade uses A.I. and bots to minimize paperwork and make the claims process more efficient. Although in their current living situation, more Millennials rent rather their own by a slim margin, eight in 10 want to own a home now or in the future.
Homeowner’s insurance company Hippo claims to provide users with a quote in just 60 seconds. The startup, which recently raised $25 million in Series B funding, currently offers coverage in five states and is dedicated to simplicity of use and top-notch customer service as well as innovative perks, like the water-leak sensor they provide with every plan. Less than 10% of young people have trust in insurance companies, and companies like Hippo are trying to change that with their consumer-focused business policies and services.
Micro-insurance provider BIMA recently received a $96.6 million investment from European financial services company Allianz, which will help it expand its reach and continue to innovate its technology. BIMA offers its micro-insurance policies to low-income customers in emerging markets in Africa, Asia, and Latin America, where traditional insurance companies don’t tend to perform well. BIMA’s policies, including life and personal accident insurance, are offered via mobile device. Other financial-related apps are going mobile, including stock brokerage and investment apps.