GlobalData has said that the acquisition of InsurTech start-up Dinghy by specialist insurance broker Kingsbridge, looks set to ignite innovation in the broker community.
Dinghy offers freelancers based in the UK with various insurance products, including professional indemnity, public liability, cyber liability, and business equipment insurance for flexible working hours.
Kingsbridge specialises in contractors insurance, so it is expected that its most recent acquisition should fit in well with its existing offering.
UK General Insurance Analyst at GlobalData, Ben Carey-Evans, said: “Consumers are increasingly moving online to purchase insurance policies across all product lines. A strong digital presence is especially beneficial within the freelance and contractors market, where there are often time pressures and last-minute schedule changes. If it is available, freelancers and contractors are always likely to choose easy, digital, on-demand insurance rather than having to organize a policy over the phone with a broker.”
According to GlobalData, the broker sector is ripe for disruption and increased digitalisation is seen as one way to increase efficiency in the space while also making the entire process much more friendly and simple for the end consumer.
Highlighting this, GlobalData found that 31.9% of small and medium sized enterprises currently purchase insurance from brokers online, with just 2.8% doing so through a smartphone. This shows the opportunity that exists in the broker channel, and especially within small business insurance, to disrupt with a view to increasing efficiency.
“Going forward, this will likely see Kingsbridge offer more flexible, online-only policies to a range of freelancers as it takes advantage of Dinghy’s expertise within the gig economy, demonstrating that some brokers are looking to enhance their digital capabilities and product offerings,” said Carey-Evans.