PopTech and InsurTech, sitting in a tree….
It takes but a minute to check my Twitter and spot some serious themes. I wax, not-very-lyrical about the dreaded B-word, some sport, and my clients. That’s about it - follow if you want, but you’ve been warned.
However, I’m not ashamed to be increasingly more fascinated by the work people are doing in some key places, places I wouldn’t know much about without these clients. My first ever client to be in one of the “-Techs” was a PropTech team. Since then, I’ve had my finger in the various PropTech, InsurTech, MedTech, HealthTech, LawTech, RegTech and other -Tech pies. Today we will stick to just three, PropTech, InsurTech and FinTech. Which, by my way of looking at things, are part of one big sector - FinTech.
So how do FinTech, PropTech and InsurTech fit together?
They just do… I would need a lot more space to cover the whole topic, so here is a very brief intro to a small part of it.
InsurTech is definitely a FinTech sub-section, I will have a live TV debate with anyone that questions this. I firmly believe that PropTech is connected as well. Think about it, a lot of what it does is handling data and transactions, the very cornerstone of FinTech.
London FinTech laid the path
A lot of what residential PropTech has achieved in the last few years has been the same as what Monese, Starling, Monzo and other challenger banks have done. They have revolutionised the way people handle their finances on a day-to-day basis. People can split bills instantly, shift money to savings accounts/pots, instantly set-up direct debits, receive email receipts for expenses and more, oh and travel for less!
[FYI, young people like traveling freely and going to a host of other nations, when the hell they want, not hinting at anything here, but don’t take that away from us just when we can spend our money abroad without being charged, cough.]
That is what PropTech has started doing too. It allows for bills to be split easily, contractors to be booked (FixFLo), rents to be paid, documents to be signed, Right to Rent checks to be sorted (CheckDocs) for example. Furthermore, people can agree tenancy terms, request rent payments and pay said rent payments (Rentr)! It gets crazy when we start to share keys and open doors remotely.. from the swipe of a phone (I will get myself Klevio One of these days…) and so much more… easily from our devices on the fly.
Who wants it?
The purchasing power of youth is bigger than ever, well, the size of the demographic at least. The requirements of these users are different, they want fast, convenient, relevant and flexible - mobile-first products are a must!
Our client KASKO for instance, the team behind the term InsurTech as a Service, recently created a new insurance product for Co-op Insurance. A flexible, relevant insurance product for student renters.
It isn’t the first and won’t be the last InsurTech to be PropTech or PropTech to be InsurTech either.
Another client, Reposit is making waves. Co-Founder Jude and his team, created the now much-discussed deposit replacement market. With Reposit, tenants can pay the equivalent of one weeks rent, which works like an insurance plan, protecting them against all elements that would be covered by a traditional deposit, but differs as one doesn’t have to pay 5 weeks rent to be covered. FCA Regulated and FSCS protected - which is vital in gaining trust when operating in such an important space - one handling people’s money and livelihoods.
Enough shameless plugging though, the important part here is that this is again, InsurTech…. most definitely FinTech and, come at me if you think it isn’t PropTech.
The list can go on, there is an awesome team out in France called LUKO, creating wee devices as well as insurance products that sense leaks or changes in the home and therefore help you with repairs and, you guessed it, insurance claims… PropTech and InsurTech strikes again!
Ever heard of Cocoon? The smart security camera that watches and listens to changes in the home. If you have one, Aviva will give you a discount on home insurance. SmartHome (which is PropTech for the consumer) making your insurance cheaper… erm, bingo… InsurTech…
Touching a little more on SmartHome gear, this new tech that is creeping into everyday homes switches power off when you leave, warns of leaks, senses smoke and notifies the right people, spots burglars better and is going to change the way buildings and cities operate in time…
If that doesn’t have an insurance link… Then I quit.
FinTech is massive, we have seen billion-dollar valuations a few times of late, and it has done a sterling job of growing trust in the wider space. In turbulent times, money is still flying from VC pockets into London startups and further afield… But the time is upon us, Fin’s two children, Prop and Insur have grown up fast. I think these two are set to take over as powerhouses of investment in the foreseeable future.
Unicorn hunting season is open.
BY DOUG HUNTER, ACCOUNT MANAGER AT CEW COMMS.