The all-in-one insurance platform

The global FinTech market is growing exponentially, representing opportunities and their unique risks associated with companies operating in this space. As FinTech's reach expands, and their capabilities evolve, they must have the best policies.

FinTech is much different than traditional financial institutions and does not share many of the risks associated with running a digital business.  More often than not, old manuscripts from carriers still in use have not kept pace and exclude many of the perils modern FinTech's face. 

Here are five reasons why you should look at FinTech insurance:

1.  Your policy does not insure you.

FinTech insurance policies exist to fill a gap surrounding technology companies that transact funds and provide dashboarding for consumers. Many domestic carriers do not offer FinTech platforms coverage—for example, first-party crime, cyber and intellectual property.

2.  Your carrier is not thinking about superior protection for your directors.

Insurance forms an integral part of your overall risk management strategy. FinTech insurance protects your business's value, where traditional insurance carriers do not provide security in the event of litigation. Critical for start-ups, mainly those trading in sensitive financial information such as online banking, where regulation is still evolving, and threats continue to emerge.

3.  No one is thinking about changes in regulators' requirements

FinTech companies have greater financial exposure due to regulatory changes. Errors or Omissions Insurance can be imposed by various jurisdictions to meet your capital requirements. Don't be caught missing this critical component. 

4.  Your policy does not offer complete protection for its directors and officers

We all know that members of senior management and boards can be held personally liable for claims brought against the company. Claims can be brought forward by customers or clients, shareholders, lenders, competitors, and contractors. Without FinTech protection, it can be a barrier when it comes to recruitment, as it enables companies to attract and retain the best directors available.

5.  A Specialized Fintech Policy makes risk easier to manage

FinTech insurance policies are comprehensive and have been designed with the work of FinTech companies in mind. Not only are these policies an effective risk management tool providing peace of mind for the company, they're also increasingly important when it comes to hiring and retaining the best talent and can prove vital in helping companies adhere to requirements from regulators.

Top 5 risks for FinTech businesses

1.   Professional liability

Negligent advice and failings in client services are common risks for any company providing financial services, especially FinTechs, who offer new financial products through new distribution models. FinTechs can also rely on third-party contractors, adding liability risk due to third-party negligence.

2.   Regulatory environment

New technology, new products, and further distribution bring a wealth of opportunities and unique regulatory exposures. FinTech companies will need to ensure they keep on top of implementing suitable and satisfactory risk management systems. As the FinTech market evolves, so will the regulatory environment, and a significant risk for FinTechs will be keeping pace with the regulators' latest updates. FinTechs will also have to consider differing regulations in multiple territories should they operate internationally.

3.   Theft of funds

The majority of FinTechs deal with a high frequency of funds movement.  High volumes of payments, transactions, and customer accounts and the fast growth and implementation of new technology leave them vulnerable to theft. These thefts could be by an employee or an external party.

4.   Cyber event

Given the nature of their operations, FinTech companies are prime targets for cybercriminals. Network security, data breaches, or even a denial-of-service attack - as well as damage and rectification costs following these incidents - should be a significant concern for FinTech companies.

5.   Technology failure

Innovative technology is essential for FinTech companies - it is how they have disrupted traditional financial services - but this heavy reliance on technology infrastructure means firms can be vulnerable. Technology failure can mean customers are unable to access services resulting in lost income or lost customers.

‍

InsureCert's distributed web application technology delivers online insurance products saving carriers, MGAs and brokers money on order processing. For insurance IT teams, it will mean quicker distribution of insurance certificates with private-key validation to ensure that policies are current and accurate. For brokers, it will mean increased revenue through cross-selling and better client retention. Finally, for consumers, it will mean peer-reviewed carriers, better risk management, sound advice, and an excellent way to stay up to date with policies and manage claims through your mobile device.

InsureCert is an Insurance Software-as-a-Service sales platform that converts low-margin program business into scalable profit centers. The company was founded by Craig Arnatt, who identified a need for brokerages to transform how they handle program business. Today, his growing team of coders works with insurance carriers, MGAs and brokers worldwide, building modern digital InsureTech solutions. 

Many insurance companies are writing small premium business that garners minimal margin and places a drag on their back office. The cost of continually staffing, rating, invoicing and generating proof of insurance certificates is a significant pain point for all stakeholders. With 1 in 25 E&O claims involving inaccurate certs and 21% of insurance fraud involving misrepresenting coverage, a real-world problem requires a solution. Until now, there hasn't been an easy way to handle online sales, policy expiry reminders and universal validation.  

InsureCert's Mobile First Platform provides next-generation insurance solutions for business owners on the go.  

‍TAGS:  EMBEDDED INSURANCE, ONLINE INSURANCE, API INSURANCE PROGRAMS

The insurance industry is amid profound change fuelled by converging trends that are creating leaps in innovation and disrupting traditional business models. As a result, insurance is ripe for repositioning in the digital age. 

How many people claim, "I love shopping for insurance" when someone or something forces them to buy an insurance policy. I am sure it's right up there with booking your next Hawaiian vacation or configuring your new car. But, no, for many insurance is the last thing they want to worry about, whether it is paying too much or not getting the right coverage.  

The insurance industry is amid profound change fuelled by converging trends that are creating leaps in innovation and disrupting traditional business models. As a result, insurance is ripe for repositioning in the digital age. 

To ease the transition, InsureCert's thoughtful leadership and insightful design team offer consumers a new generation of solutions that seamlessly integrate and adapt to specific needs. In addition, this approach will align with the emergence of flexible platform-as-a-service architecture commonly found in other industry segments and InsureTech startups.
‍

Based in Vancouver, Canada, InsureCert is a software development company working on decentralization and transparency solutions for the insurance industry. A worldwide patent has been filed to protect the intellectual property behind InsureCert, giving the company a unique opportunity to become "the go-to" platform for evidencing insurance using shared ledger (blockchain) technology. The company is helping consumers and business owners make smarter financial decisions by creating an encrypted insurance wallet that recommends coverage and manages workplace compliance. InsureCert's mission is to transform opaque, centralized workflows into decentralized peer-to-peer solutions.

TAGS:  EMBEDDED INSURANCE, ONLINE INSURANCE, API INSURANCE PROGRAMS