- InsuraGuest Technologies is a leading insurtech (insurance + technology) company that offers its Hospitality Liability coverage to the hotels and vacation rental sectors
- The latest expansion will offer accidental medical protection to hotels and vacation rental customers who also own properties abroad
- The company is looking to enter the European and Canadian markets in 2021, two promising markets, given the size of the SMEs and projections on revenue generated from the traditional hospitality sector and vacation/holiday rental homes
- InsuraGuest already has existing insurance partnerships with leading underwriting companies and distribution with major insurance agencies
InsuraGuest Technologies (TSX.V: ISGI) (OTCQB: ISGIF), a leading insurtech company that is leveraging its proprietary software platform to disrupt the insurance landscape, has expanded its Hospitality Liability coverages to include worldwide accidental medical protection for U.S.-based customers. Through the wholly owned U.S. subsidiary InsuraGuest Hospitality, the company will now provide coverage to U.S. hotel and vacation rental customers that have properties located outside the country (https://ibn.fm/XDue0).
This decision is in line with the company’s plans to expand the reach of its insurtech platform and services worldwide, starting with the European and Canadian markets. “It has always been our goal to expand InsuraGuest worldwide so we can capture the 6.8 billion hotel nights stayed and 448.7 million vacation rental users in major worldwide markets,” InsuraGuest Technologies Chairman and CEO Douglas Anderson explained. “Our ability to offer the accidental medical portion of our Hospitality Liability coverage to our U.S. members’ properties worldwide is the first step for us to become the global provider we have envisioned.”
A look at the European and Canadian markets shows the motivation behind this expansion drive. A publication by the European Commission shows that small and medium-sized enterprises (“SMEs”) contribute 50% of Europe’s GDP. As at March 2020, there were 25 million SMEs, which employed 2 out of 3 Europeans (https://ibn.fm/7D8mU).
The European vacation/holiday rental homes are projected to generate about $23.99 billion in revenue in 2021, with the figure expected to reach $34.18 billion by 2025 (https://ibn.fm/ChzOP). The revenue from Canadian holiday rental homes is forecasted to reach $1.40 billion in 2021 and $1.90 billion by 2025 (https://ibn.fm/0w1P1). These figures exclude the income from the traditional hospitality industry, which is expected to generate $79 billion and $4.89 billion in 2021 in Europe and Canada, respectively.
To back this expansion, InsuraGuest already has existing partnerships with underwriters and distribution with major insurance agencies to sell in these new markets. Therefore, they looks well-positioned to enter the new market successfully. InsuraGuest is transforming the way insurance is delivered, and the fact that it is eyeing new markets means that it is looking at the transformation from a global perspective.
InsuraGuest Technologies is at the center of a global, technology-driven insurance shakeup. A McKinsey report on the digital disruption in insurance terms the present era as “The age of innovation. Insurers have a choice: be disrupted or be the disruptor with new products, services, and business models.” It further discussed new ways in which technology has disrupted and is disrupting the insurance sector, among them the fact that new underwriting approaches have emerged. One such disruption, which InsuraGuest’s products happen to be a part of, is on-demand insurance.
The report continues, “In addition to facilitating the underwriting of small amounts of cover, real-time data can enable the provision of ‘episodic’ or on-demand cover for short periods” (https://ibn.fm/ChS42). This statement perfectly describes two of InsuraGuest. The company’s platform provides digital insurance to multiple sectors, making it well-suited for the current insurance market conditions.
Further, the software platform supports multiple property management systems used in the hospitality industry – over 82 PMS systems available in the market – through back-end integration, enabling it to deliver the Hospitality Liability coverage.
This coverage, a specialized insurance policy covering property, casualty, accidents, and health claims, is activated when a guest checks in and deactivates once they check out. This insurance policy is also unique because it passes the cost to the guest (https://ibn.fm/S1u6U) and is available for hotels and vacation rental properties.
The InsuraGuest solution further helps hospitality operators lower their insurance premiums and risks deriving from third-party liability claims by absorbing the risks itself. The majority of hotel operators file their accident or small property claims through their general liability policies, resulting in higher premiums. The higher the risk, the higher the general liability insurance prices will be.
InsuraGuest changes this dynamic by transferring the risk from the hospitality operator by having guests pay a nominal fee per night. InsuraGuest then pays out the coverage for these small claims, potentially keeping the hotel operator’s general liability premiums untouched, resulting in lower expenses for property owners.
For more information, visit the company’s website at www.InsuraGuest.com.
NOTE TO INVESTORS: The latest news and updates relating to ISGI are available in the company’s newsroom at http://ibn.fm/ISGI
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