Former AmFam VC's insurance startup. This week in insurance tech.
As we approach our Future of Fintech conference later this month, one thing we are thinking more about are how consumer “hooks” in fintech are evolving.
One of our speakers at the conference is Credit Karma CEO Kenneth Lin. Credit Karma’s free credit score provides a meaningful hook to both bring in new users and check back in. Last September, Credit Karma hit 60 million users while reportedly adding one to two million users per month. In January, Credit Karma launched a free tax prep service in time for April 15 filing, hooking in more users (see Twitter mentions of TurboTax vs. Credit Karma).
When we look at insurance tech globally, we’ve seen some interesting hooks developing in China. In an earlier newsletter, we talked about how Alipay’s new health insurance service brought in 13 million users in 20 days by allowing users under the age of 60 to receive a certain amount of critical illness coverage (up to 2000 yuan or $290) each time they make an offline payment with their Alipay Wallet.
Now Ant Financial is making greater inroads in the auto insurance industry. This week, it introduced “auto insurance points,” a free driver score measuring traits like credit history, consumption habits, and driving habits on a scale of 300 to 700 (higher score = lower risk).
Nine insurers including PICC, Taiping Property Insurance, and China Life are partnered with Ant to use the scoring system. What’s interesting is Ant’s posturing both in health and auto of not launching its own insurance products, but hooking more users into becoming policyholders.
Former AmFam VC raises $8.75M for Clearcover
We recently came across filings indicating Clearcover, a Chicago-based insurance startup, had raised two rounds of financing totaling $8.75M to date. Clearcover is co-founded by former AmFam Ventures VC Kyle Nakatsuji (who has previously authored someposts on the CB Insights blog). Peter Gunder, AmFam’s Chief Business Development Officer, is also listed on the filing.
No indications on Clearcover’s eventual offering(s) yet.