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Jetty and Fabric, Insurtech on Traditional Products

Insurtech not only competes through product innovation, but also by innovating the bundling of traditional products. Jetty and Fabric are two recent examples that illustrate this model well.

Fabric exclusively sells life insurance. The founders are two ex Simple employees, the American bank that bought BBVA. The startup has a seed funding of 2.5 million dollars. Simple and Fabric’s arguments sound the same. Simple uses expressions such as “Welcome to everything Simple” and Fabric echoes “Life insurance made easy.”

Easy, simple, smart, and digital are the expressions that pull consumers away from big insurers in their search for the proximity and immediacy associated with digital platforms.

Easy, simple, smart, and digital are the expressions that pull consumers away from big insurers in their search for the proximity and immediacy associated with digital platforms.

Jetty follows a similar line. With a $4 million seed, this product is more novel. It secures a tenant’s belongings in his landlord’s house, and replaces his insurance deposit.

The Jetty product is, behind Munich Re, one of the biggest multinational reinsurers, confirming another latent trend in insurtech: disintermediation and the reinsurers’ jump to the sector’s first line, entering directly as a supplier or investor in the startups.

These new models point out a more interesting line of work for large insurers in the digital transformation: creating simple platforms specializing in single products.