Original Article Sourced from NetworkNewsWire
- Company expects to receive approval in the remaining 34 states by Q3 this year
- InsuraGuest’s API integrates with 71 different property management systems, giving it access to hotels and vacation rental properties worldwide
- Global vacation rental market is predicted to reach $63 billion in 5 years
- Number of vacation rental users globally is expected to soar to 361 million, at a 38 percent CAGR over the next five years
InsurTech company InsuraGuest Inc. announced the launch of InsuraGuest Insurance Agency LLC (IG Agency), its wholly owned subsidiary. IG Agency is registered and licensed to sell insurance in 16 states nationwide: Arizona, Arkansas, Colorado, Idaho, Indiana, Iowa, Louisiana, Maryland, Michigan, Montana, Nevada, Ohio, Pennsylvania, South Carolina, Utah and Virginia. It brings licensed insurance sales in-house to create shareholder value and increase InsuraGuest revenues.
IG Agency expects to receive approval for the remaining 34 states by Q3. This will allow the company to sell InsuraGuest’s specialized Guest Protection Policy in combination with the InsuraGuest InsurTech (insurance + technology) platform to hotels and vacation rental sectors nationwide (source).
The company has outstanding prospects on the global vacation rental market, which is projected to reach $63 billion by 2024, advancing at an annual growth rate of 5.51 percent in 2020. Projected vacation rental revenue for 2019 was $57,669 billion with a market growth rate of 6.9 percent. U.S. travel to overseas markets totaled 35.1 million, up by 7 percent About 25 percent of Americans report engaging with short-term rental platforms (23 percent), up 277 percent (source).
InsuraGuest entered the vacation rental sector at the end of September 2019 by signing a software integration deal with San Francisco-based Hostfully Inc., rated as one of the best property management systems in the world. InsuraGuest’s InsurTech platform can integrate with around 71 different property management systems, giving it access to more than 40,000 properties worldwide. In line with the parent company’s growth goals, IG Agency aims to become a worldwide licensed provider and service customers who have properties outside the United States.
According to a Hostfully report, the total number of vacation rental companies in the U.S. is currently at 23,000, which accounts for a fifth of all the vacation rental companies in the world. The current CAGR is 7.1 percent, while the average CAGR for this decade is 8.5 percent. The number of second homes in the United States totals 9 million, 44 percent of which are professionally managed, while 25-35 percent are rented out (source).
InsuraGuest’s proprietary InsurTech software platform delivers a specialized guest protection policy to the hotel or vacation rental property to protect the guest during their stay while on the property. Hotels and vacation rental properties purchase an InsuraGuest Guest Protection Policy, which is extended to each of their guests, including their room occupants, at the time of check-in. The specialized policy covers accidental in-room damage, lost or stolen personal property, as well as accidental medical expenses and accidental death and dismemberment.
The policy was created to fill a gap left by traditional traveler’s insurance, which doesn’t cover a number of things that can happen inside hotels or vacation rental properties, putting both the guest and the hotel or property owner at risk. InsuraGuest Guest Protection Policy is complimentary to homeowners and/or general liability insurance coverage. It is the first line of defense for the guest and the property.
InsuraGuest is working to expand the scope of its insurance products to cover European Union member states and the United Kingdom, as well as Asia before mid-2020. Europe’s hospitality stay market is more than double the market size in the United States, which means the InsurTech insurance platform has even greater potential in serving hotel and vacation rental guests. Europe accounts for 60 percent of all the vacation rental companies in the world, and the rest of the world accounts for 20 percent.