Quesnay recently concluded the 7th edition of our flagship innovation program, Female Founders in InsurTech 2020. On September 21, 2020, we hosted a virtual Final Pitch Event featuring our five high-caliber Finalists as they pitched to a panel of industry experts. Watch a replay of the event below, take a moment to congratulate our 1st (Hosta Labs), 2nd (upcover), and 3rd (PAI Health) place winners, and then continue on to read more about the insights and findings uncovered in this years’ program!
Since launching Female Founders in 2017, we have seen over 750 participants from 74 countries and InsurTech 2020 really went to the next level of global reach with 57% of applicants coming from outside the United States - the highest percentage, to date, thanks in large part to our Ambassador Program.
While accessing diverse markets and founders, we have seen a broad trend in the InsurTech space, with investment trends clearly reflecting the current global pandemic. This year, we received more entries focused primarily on Health, Life, and pandemic-related solutions than ever before. Life & Health Insurance investments have gained traction in 2020 because of an increase in telemedicine solutions and the overall market vigorously searching for COVID-19 solutions. Furthermore, of the Life & Health investments in Q2 2020, 45% of InsurTech funding went to B2B solutions according to CB Insights, boding well for the 41% of our applicant pool with this model.
Solution Categories Present in the Female Founders in InsurTech 2020 Cohort:
Jennifer Byrne, Quesnay Co-Founder & President, reflects on four years of running Female Founders accelerator programs:
Again this year, we marveled at the caliber of InsurTechs participating in our program….who just happen to be diverse and female. These entrepreneurs deeply understand the insurance sector’s challenges and the urgency to digitize products and distribution channels. They also dived all in (some working throughout the night) to take full advantage of the generous resources and expertise offered by our program— sponsored by CSAA, Hanover, Marsh, and RGAX. The most remarkable observation is that the majority of startups in this cohort, similar to the prior 6 (since 2017), continue to struggle raising capital. This, despite their market validation & traction, multiple pilots, their ability to build strong relationships, the strength of their teams, their participation in multiple accelerators, and being the experts in their fields. This is a unique moment in time to invest in a growing number of world-class startups who are solving significant issues, responsibly managing every dollar of capital raised, and successfully weathering the COVID-19 crisis. The smart investors who jump in and bet on these talented, motivated stars will undoubtedly enter 2021 with a differentiated portfolio and path to successful outcomes. Stay tuned for a deep dive on the subject later this month!
In the meantime, take a look and listen to what our sponsors, judges, and mentors had to say…
Linsay Hohmann, Senior Vice President, Service at CSAA Insurance Group, a AAA Insurer, a Supporting Sponsor of the program, speaks to her experience in this year’s competition and how her perspective has been shaped by taking part in the program as a Final Pitch Judge:
Avritti Mital, Managing Director - Global Head of Product Management & Strategic Partnerships at Marsh and a Final Pitch Judge provided her most rewarding aspect of being involved:
“Watching an incredibly creative, talented, and passionate group of women come together to share their vision about how they will apply technology toward solving some really hard problems in the insurance space. I was truly inspired by these female founders, and really enjoyed getting to know them better.”
On the next steps:
“Today is only Day 1. I applaud Quesnay and the participating insurTechs for the platform they have created to advance this critical conversation forward. That said, in 2020 female founder-only led startups received 2.8% of VC investments. We have a long way to go in changing this dynamic, but I am incredibly hopeful and optimistic given what I experienced as part of Female Founders in InsurTech 2020.”
As on organization, Marsh understands that partnering with diverse founders will help them access innovation across insurance:
“We recognize that by partnering with diverse organizations we can create more value for our clients and the communities we serve. We stay connected with the start-up community through events, incubators, and programs such as Quesnay and InsurTechConnect. Recently, we created the Marsh InsurTech & RiskTech Council with expertise from the business and digital functions to identify and explore new opportunities across the insurance ecosystem. Much of the disruption happening today is around the customer experience, new markets, and data & analytics that support improvements in predictive and risk management capabilities. For example, usage-based insurance, gig economy, comparison shoppers, recommenders, and predictive modeling as well as emerging technologies such as AI/ML, Blockchain, and IoT will play a significant role in the space. We see InsurTechs as a source of opportunity for collaboration and digital innovation, from improving customer experience to optimizing operations to offering new products.”
Sandi Hubert, Senior Vice President, Chief Operating Officer, RGAX Global at RGAX discusses how she envisions innovation investments and partnerships moving forward into a post-2020 world:
We asked Sandi what insurance will become over the next 10 years:
From the viewpoint of our founders, this is how carriers in the post-COVID-19 landscape should hone their focus:
Looking forward, Marsh also sees the transition to new digital products as extremely important:
“With the world challenging us and our clients like never before, the need to innovate, to become faster and more agile, is critical. Our clients have a renewed focus on resilience and the insurance industry will need to meet the immediate and evolving needs of our clients as we move forward. Increasingly, the shift to virtual and operating in a digital world has just accelerated the digital trends (and aspirations) that already existed. Clients are looking to work with brokers and insurance carriers in new and different ways. Needless to say, innovation will be critical in the path ahead.”
Through seven iterations of Quesnay’s Female Founders program, we continue to see the importance of both Innovation and Diversity in the insurance industry. These factors will be even more important moving forward for carriers to preserve a competitive advantage in the market. Asha Vellaikal, Marsh, Global Head of Digital Labs at Marsh precisely states:
“There are no boundaries to innovation and women of all backgrounds in all parts of the world are thinking globally and deeply about solving tough problems and making a meaningful change. Quesnay's ability to create this worldwide innovation network around insurance, and help foster and accelerate women entrepreneurs to reach their potential is so important to the evolution of the industry.”
Thank you to our Supporting Sponsor Avanta Ventures & CSAA Insurance Group, a AAA Insurer, and our Contributing Sponsors The Hanover Insurance Group, Marsh, and RGAX for being part of Quesnay’s Female Founders in InsurTech 2020!
For more information about the program, click here. For more information on how to become a sponsor, partner, or participant of future innovation competitions, or for any general inquiries, please contact us.
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Photo by Jacob Lund from Noun Project