In the article, “Crowdfunding sites target civic projects” written by Michael Morisy, the projects that are being funded vary from dog parks and park repairs to nonprofit organizations dealing with making the world green or civic projects. People want the government to be more like a vending machine where sites will be made about certain projects and people will donate according to what they want and that will raise the money needed to build whatever it may be. Some sites give out to their supporters rewards like mugs and whatnot.
An example of crowdfunding given in the article takes place in Philly, where the Parks and Recreation Department created this type of site and people are donating money to plant trees around the city. Even here in our home town of Boston, a non profit group called “Tech Goes Home”, they have raised money through the crowdfunding technique to buy ipads for a class of blind children. (How sweet!!)
These projects and the idea of crowdfunding sites are being funded because it gives people a sense of control and effort to help their home towns or states. It is a way for people to get to have a say in where their money goes.
The insurance industry has generally been a laggard when it comes to digital transformation. Yet a new class of venture-backed insurtech startups is beginning to disrupt incumbents by exploiting the weaknesses of the traditional insurance ecosystem.
So far, emerging providers have largely just nibbled around the edges of the industry, but their success in penetrating new markets (such as cyber risk) and attracting underserved customers (such as gig economy workers) increasingly threatens incumbents who have been slow to respond.
InsurTech Startups are developing new approaches to traditional activities, such as underwriting and claims management, that could give them an edge.
As traditional competitors seek to maintain market share, they are focusing on providing targeted products, improving customer onboarding processes and deepening their relationships with existing customers.
The number of deals in this sector increased dramatically by 54.2%, rising from 24 in the last quarter of 2023 to 37 in the first quarter of 2024.
Despite the increase in the number of transactions, the average deal size in L&H InsurTech fell by 39.38% to USD 9.29 million.
Funding for early-stage InsurTech surged by 26.5% from the fourth quarter of 2023 to the first quarter of 2024, reaching a total of USD 280 million.
This growth spanned both Property & Casualty (P&C) and Life & Health (L&H) sectors, which saw increases of 16.8% and 66.9% respectively.
These initiatives tend to take the form of investments, partnerships, and acquisitions. While these approaches may help improve incumbents’ competitive posture, they also drive opportunities for startups to help legacy providers fill the gaps in their offerings.