InsuraGuest Technologies Inc. (TSXV: ISGI) as of late has been working to grow its profile and client base within the insurtech industry. Over the last several weeks, notable integrations have occurred, while the firm has also added multiple industry veterans to its leadership team in a bid to drive continued growth in user adoption.
InsuraGuest is an insurance technology focused firm that has developed a transformational and disruptive proprietary software platform that is changing the way insurance is being delivered digitally. The company has targeted the hotel and vacation rental industries as its initial niche markets, marketing on-demand insurance products that were developed specifically for these sectors to protect the properties from claims made by guests on a primary no-fault basis. The insurance premiums are charged to the guest on a per-diem basis.
InsuraGuest is quickly gaining traction with its marketing efforts and recently announced new agreements with two travel and vacation management service companies. On August 12, ISGI announced it has integrated its API with TravelNet Solutions’ subsidiary, Track PMS. The subsidiary features TravelNet’s vacation rental property management operating software, enabling its clients to use Insuraguest’s insurance to provide primary no-fault accidental medical and property damage insurance coverage to their properties.
In terms of hard figures, most property management platforms are rather secretive on the size of their userbase. However, TravelNet indicates that it has served over 1,400 clients, whom manage in excess of 135,000 units. If InsuraGuest were able to capture even just 1% of these units as new clients, that would equate to 1,350 new properties to provide insurance products to, and nearly 493,000 nights per year in potential revenue opportunities. At a rate of an estimated $5.00 per night, the implications of even this minimal adoption are extremely significant.
Subsequently, on August 19, 2021, the company announced it has signed another vendor agreement and has integrated its API with OwnerRez, a vacation management services company that helps its customers to manage their vacation rentals. These new agreements are part of InsuraGuest’s strategy to integrate its software and offerings with vacation rental PMS systems as a win-win revenue sharing model. The strategy is expected to give it greater access to clients, which in turn will generate recurring revenues and facilitate exponential revenue and profit growth.
Perhaps of even more importance, InsuraGuest recently attracted two elite industry executives to join the company’s management team. The two new members collectively have decades of extensive experience in finance, insurance, risk management, and digital technology marketing, which will be used to guide the company through this critical stage of growth.
The first appointment was that of Reed Wright, a digital marketing guru who co-founded Axis41, which specialized in digital platform creation, execution and maintenance for the hospitality industry. He has also worked with major North American resort properties, overseeing their hospitality, lodging and e-commerce platforms. Wright has joined the company as President, where he is expected to his his industry connections to drive further adoption of the firms products.
Veteran insurance and insurtech industry executive, Jim Kilduff, was also recently appointed to the firms management team, in the role of Chief Insurance Officer. During his illustrious career, Mr. Kilduff was involved in almost every facet of the insurance industry, creating new insurance programs in all lines of business, and in recent years has focussed on Insurtech startups and their business propositions to carriers and reinsurance companies.
InsuraGuest also recently announced that it raised $852,000 from current shareholders, via the exercise of 2,436,858 warrants that were granted in a February 2020 private placement.
Bringing high-calibre key executives such as Wright and Kilduff on board raises the Company’s profile and credibility within the Insurtech industry, positioning the firm to be able to drive continued growth. It’s latest integrations meanwhile will also assist with this, via continued adoption by property management firms. This could potentially add significantly to ISGI’s valuation compared to its current modest market capitalization of only $20 million.
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