Insurtechs Pattern and Setoo merge | Digital insurance


Setoo, provider of an on-board travel and leisure insurance platform; and Pattern, which designs parametric insurance programs, have merged. Pattern will be the name of the joint venture.

Setoo was a UK-based managing general agent looking to expand into the US, when a joint investor introduced him to Pattern. The merger allows Setoo to avoid the time it would take to meet regulatory requirements to start selling insurance in the United States. The joint venture will be able to marry the borderless online world with the localized insurance world, according to Meitav Harpaz, CEO and founder of Pattern Insurance Services.

“The global economy: you buy something, it’s good,” Harpaz said. “You can buy it from anywhere and it comes to you, wherever you are in the world. So you have this experience in the borderless online world, but the insurance is very localized and very limited by borders. Ohio regulations are different from New York, different from UK, France, etc.

Setoo’s platform enabled rapid integration of insurance products, which facilitated digital integration, according to Harpaz. The platform technology has taken the assets, actuarial model, automated processes, and underwriting from Pattern.

Ease of use extended to the consumer was a priority for the merger. With the API, businesses will be up and running and fully compliant within hours. Consumers will receive real-time risk and price analysis, according to Harpaz.

“In online transactions, consumers are used to some form of experience,” Harpaz said. “And the experiment is generally very straightforward, and in many cases it is automated. This is where we put a lot of effort, both in terms of integration with our platform that companies integrate with us. Or the integration is super easy, super fast.

The pandemic has also led consumers to expect more flexibility from their insurance platforms, according to Harpaz. He used the example of a traveler during the pandemic who should prioritize the flexibility to cancel or change their plans over any other concerns.

“After the COVID pandemic, global markets have been dramatically altered and consumer concerns about unprotected risks have increased further,” Noam Shapira, co-founder and co-CEO of Setoo said in a statement. “Our customers who use the platform to deliver our innovative protections are already seeing an accelerated recovery ahead of the rest of the market. We are aligning our efforts with Pattern to restore consumer confidence when shopping online and are excited to accelerate our vertical and geographic expansion.

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