MICROCAPITAL BRIEF: MicroEnsure, STP, TonkaBI Merge into “MicroInsurance Company,” Leveraging Straight-through Processing, Artificial Intelligence to Expand Access

Seeking to expand access to microinsurance for both individuals and businesses, UK-based companies MicroEnsure and TonkaBI along with the US-based STP Group recently merged to form the MicroInsurance Company (MIC). The new firm describes itself as “the first global end-to-end digital micro insurance solution,” benefitting from the three firms’ “reinsurance capacity, in-country insurance licenses, world-class distribution and market-leading artificial intelligence functionality.” STP Group brings the new company its straight-through processing (STP) methodology, which leverages a high level of automation “eliminating the need for human outreach or processing delays… allow[ing] for a low cost and high volume distribution…”.

Harry Croydon, who founded STP Group and has become the CEO of MIC, holds, “After years of market development, it is only now that the necessary technology has been developed so that we can offer complete micro insurance products to the unserved. We provide people with a simple safety net, so when the unexpected happens, they can bounce back swiftly.”

MicroEnsure was founded in 2002 to offer insurance to individuals, particularly those with low and moderate incomes. Through partnerships with banks, telecommunications companies, microfinance institutions (MFIs) and ridesharing companies, MicroEnsure has served approximately 65 million individuals since its launch. The company established offices in Ghana, India, Kenya, Pakistan, the Philippines, Tanzania and the UK.

TonkaBI was established in 2015 and opened offices in India, the United Kingdom, and the United States. It provided technology solutions related to “robotic process automation,” machine learning and artificial intelligence in industries such as insurance, transportation, finance and logistics.

The goal of STP Group was to “disrupt traditional insurance practices” via automation, including “to close the engagement gap between low-income clients and insurance products in rural communities around the globe.” In addition to microinsurance, it specialized in insuring real estate and supply chains.

Data on indicating the scale of TonkaBI and STP have not been released.

By Jessica McLeod, Research Associate

Sources and Additional Resources

MIC press release
https://blog.microinsurance.com/post/global-insurtech-micro-insurance-company

MIC homepage
https://www.microinsurance.com/

MicroEnsure homepage
https://microensure.com/

Straight Through Processing (STP) Insurance homepage
http://stpinsurance.com/

TonkaBI homepage
https://www.tonkabi.com/

Did you know that MicroCapital publishes the MicroCapital Monitor each month? Find out more at https://www.microcapital.org/products-page.