Insurtech company Novidea is foraying into the South East Asian market to expand operations and meet rising demand.
The company offers a cloud-based, data-driven insurance management platform for carriers, brokers, agents, managing general agents (MGAs) and managing general underwriters.
Initially, Novidea will launch in Hong Kong and Singapore.
Novidea stated that despite its size, South East Asia’s insurance sector is complicated and fragmented, presenting a significant opportunity.
Novidea CEO Roi Agababa said: “At Novidea, we are seeing an urgent demand from global brokers in South East Asia for a single integrated, global, cloud-based insurance management platform.
“South East Asia is embracing digital transformation in terms of insurance technology, and many businesses are seeking specialist digitalisation solutions to remain competitive and profitable.”
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Citing GlobalData, Novidea said infrastructure projects and private health would drive 7.2% growth in Singapore’s general insurance market by 2026.
According to estimates, the region’s industry will grow from $3.5bn in 2021 to $5.1bn in 2026.
Results from a global survey commissioned by Novidea show that Singaporean insurance companies have a number of difficulties with their current technology.
The most common are the high installation and maintenance costs, data silos and inflated prices.
Novidea UK and international MD and in charge of South East Asia Ben Potts said: “There are many technology suppliers in the South East Asia region; however, there are very few global insurance management platforms that support businesses across borders while covering the entire customer journey, end-to-end, and offering an integrated front, middle and back-office in a single platform.”
In May this year, Novidea raised $50m in a Series C funding round led by Battery Ventures, with participation from Cross Creek, Israel Growth Partners, KT Squared and JAL Ventures
At the time, the insurtech company said it would use the funding to expand across target markets in the US, the UK, Europe, the Middle East and Africa (EMEA), and Asia-Pacific.