News in numbers

Verdict InsurTech gathers the most important industry news in recent times, including some startling figures


French insurance giant AXA has called off the deal to sell its AXA Life Europe (ALE) business to private equity firm Cinven.

The deal, which is believed to have collapsed due to the economic crisis created by the Covid-19 pandemic, was valued at approximately €1.2bn ($1.4bn).

AXA, which confirmed the development alongside the release of its Q2 results, said that certain closing conditions for the deal had not been met by the agreed long stop date.

The French insurer noted that it will now reassess its strategic options in order maximise the value and efficiency of ALE, which has been closed to new business since 2017.


Root Insurance has announced plans to remove credit scores as a factor in its car insurance pricing model by 2025.

According to the firm, credit scores and other demographic factors such as occupation and education in car insurance rates indicate bias into drivers’ pricing.

This in turn impacts under-resourced communities, immigrants, and people with large medical expenses.

People who have low credit scores, even if they have a safe driving history, get being penalized to $1,500 or more in annual premium payments.

New term

Haven Life, a wholly-owned subsidiary of MassMutual, has launched a new term life insurance product dubbed Haven Secure.

The policy, which is a decreasing term product, provides a steady monthly benefit for a minimum of five years to the policyholder’s family in the event of the person’s death.

The company intends to offer the product through its partners, including banks, insurance brokers, fintechs, parenting sites, among others.

It is available in 10, 15, 20 or 30-year terms with coverage amounts ranging from $1,000 to $8,000 per month. Eligibility will be based on age.


Insurtech FINEOS has reached an agreement to purchase software-as-a-service company Limelight Health for $75m.

Limelight Health provides quoting, rating and underwriting solutions for group and voluntary employee benefits in North America.

The unified company is expected to offer an end-to-end SaaS core product suite for the global life, accident, and health industry. It will include quote, rate and underwrite through to billing, policy administration, absence and claims management.

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Tesla launches insurance broking firm in China

American electric vehicle and clean energy company Tesla has reportedly set up an insurance broking firm in China to offer insurance to Tesla owners in the country.

According to a report by China Daily, the new company was listed on the National Enterprise Credit Information Publicity System of China, with a principal capital of CNY50m ($7.2m).

It is registered in Lingang New Area of China (Shanghai) Pilot Free Trade Zone, where the Tesla ‘Gigafactory’ is located.

The filing reportedly named Tesla global vice-president and Tesla China head Zhu Xiaotongas legal representative of the insurance brokerage company, which is 100% owned by Tesla Motors HK.

As per the regulatory filing, the brokerage was established on 6 Aug and it can operate through 5 Aug 2050.

AXA, Procore partner to support project risk management for contractors

AXA XL’s North America Construction insurance business has partnered with project management software provider Procore to improve productivity and facilitate project risk management for contractors.

As part of the collaboration, Procore joined the Tech Library of AXA XL’s Construction Ecosystem, which is developed to help clients manage risks on their jobsites and across their organisations.

The Procore construction platform is designed to connect entire project teams, between office and field and across companies.

It enables key stakeholders including owners, general contractors, specialty contractors, architects, and engineers to collaborate across locations and devices.

Additionally, this platform helps users to improve productivity and efficiency while minimising rework and costly delays. It is also said to increase safety and compliance, and enable better financial transparency and accountability.

Covid-19: UK insurers pay £90m in life insurance claims

The Association of British Insurers (ABI) said that UK life insurers have paid £90m ($117.18m) in life insurance claims related to Covid-19.

The insurers received 7,000 claims during the peak of the pandemic, between 1 March and 31 May.

According to the trade body, while 6,689 claims were received under individual protection policies,351 were filed under group schemes.

The insurers have paid 83% of the claims so far with £90m.

This equates to 77 claims worth £980,000 on a daily basis, ABI noted.

The trade body expects the average pay out to be £63,000 in case of term insurance and £137,000 for group policies.

Chubb launches first and third-party policy for UK tech companies

Chubb has rolled out an enhanced MasterPackage solution for UK technology companies, which develop or provide technology products, solutions or services.

Claimed to be a comprehensive first and third-party policy, the product offers a wider service proposition and suite of cyber support services to the customers.

MasterPackage is regularly enhanced to meet the requirements and changing risks faced by the technology companies, noted the company.

The latest upgrade includes advanced professional indemnity, cyber cover and added value services along with a new multinational policy wording, in addition to local wording.

Options for cancellation of event, marine cargo, global terrorism coverage, legal expenses, employee crime, kidnap and extortion expenses are also included in the new upgrade.

Prudential to divest Taiwanlife insurance business for $187m

Prudential Financial has entered into a definitive agreement to sell its life insurance venture in Taiwan to Taishin Financial.

In accordance with the agreement, Prudential Financial will sell its 100% stake in Prudential Life Insurance Company for TWD5.5bn ($187m).

Prudential said that this transaction is in line with its strategic focus on Japan and higher-growth emerging markets globally.

Founded in 1989, Prudential of Taiwan provides individual whole life and other protection products to middle market and affluent consumers. It has previously collaborated with Taishin on bancassurance initiatives.

Taishin, which forays into insurance space through this deal, will retain all the employees of Prudential Life Insurance after the closing of the transaction.

The acquisition enables the company to combine its financial business in the areas of banking, securities and insurance, and provide clients with more diverse offerings.

Insurance tech firm Waterdrop raises $200m to fund expansion

Beijing-based insurance tech firm Waterdrop, which is backed by Tencent Holdings, has raised around $200m to fund its expansion in healthcare crowdfunding, Bloomberg reported, citing people familiar with the matter.

The firm raised the money at a valuation of approximately $2bn, the people told the news agency, adding that the matter is private.

The four-year-old firm is also weighing an IPO, other people familiar with the matter told the news agency last month.

The proposed listing is likely to include its main businesses – Waterdrop Insurance Mall, Waterdrop Mutual, and Waterdrop Crowdfunding.

IPO is likely to help Waterdrop increase funds to ward off competition from Ant Group in the healthcare segment.

With China’s ageing population rapidly growing, the country is struggling with increasing rates of critical illnesses and Waterdrop expects to tap this segment.

Thoma Bravo raises offer price for Majesco to $729m

US-based private equity firm Thoma Bravo has increased its offer price for the cloud insurance software firm Majesco to $729m, which represent an increase of 22% compared to the initial deal.

Thoma Bravo will now pay for $16 per share to obtain all of Majesco’s outstanding shares. Last month, the company agreed to pay $13.10 in cash for each share, valuing the transaction at $594m.

The move comes after an unsolicited bid was made for Majesco by an unaffiliated third party.

Majesco has signed the amended definitive agreement with Thoma. Following the closing of transaction, it will operate as a privately held company.

The proposed merger is subject to the receipt of approval from Majesco shareholders and the approval of the shareholders of Majesco’s parent company, Majesco Limited. The boards of directors of both Majesco’s and Majesco Limited’s have approved the merger.

Insurtech TypTap unveils plans to expand operations across US

TypTap Insurance Company, a provider of homeowners and flood insurance in Florida, has revealed plans to expand its business across the US.

The insurer, which was founded in 2016 and funded by HCI Group, has sought approval from Florida insurance regulators for expansion plans.

If the company secures approval, it can then seek the nod from regulators of other states and expand its operations across the US.

The company in a press statement claimed that its operations in the home market have grown ‘rapidly’.

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