Old Mutual is wading deeper into insurtech with the 100% acquisition of Genric Insurance Company.
Genric is a licensed non-life insurer that partners with and holds ordinary equity interests in a number of specialist underwriting management agencies, start-up businesses and insurtech innovators.
The takeover of Genric by Old Mutual comes at a time insurtech companies are driving the traditional insurance sector to transform.
These digital insurance companies are also proving to be valuable partners to traditional insurers who want to provide digital products and services.
In the past 18 months, local insurtech companies such as Simply Financial Services, Pineapple and Naked have all seen strong growth, signalling potential of the sector.
With the this transaction, Old Mutual says it brings “not only an ability to rapidly test and scale new product ideas but also access to a new customer base in accident and health, medical insurance, as well as other niche insurance such as value-added products, cash in transit, equine, marine, travel, taxi, heavy commercial vehicles, and shack insurance”.
In a notice to shareholders, Old Mutual says the acquisition is likely to enhance its insurance’s customer service experience by including value-added services offerings offered by Genric, develop more innovative products, and give it access to new markets through low-cost products.
“Genric has demonstrated its ability to identify and incubate start-up businesses,” says Old Mutual.
The transaction is still subject to regulatory approvals, including Prudential Authority and Competition Commission approvals.
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