The company’s issuance is led by the underwriting company Poalim IBI. Vishor GlobalTech is in fact the second Israeli digital insurance group to go public with Lemonade (which is traded on the US stock exchange).
The company, founded in 2016, is controlled by Emil Winshel and Nitzan Tze’ir-Harim, both former senior figures in the Israeli insurance industry with over two decades of experience in the insurance and finance industry. The company and its subsidiaries were established with the aim of leading the digital and technological revolution, which has taken place in recent years in almost all areas of life, including the field of conservative insurance, first in Israel and later in other countries around the world.
The goal of the group, which operates in the growing insure-tech industry, is to turn the products of the insurance industry, which are perceived by the public as complex and intricate, into products of an intuitive and simpler nature, with an ongoing purchasing and management experience that can be done independently by the customer. The concept of “Mobile First”.
The goal is to make the insurance field accessible 24/7, in transparent and flexible interfaces to the customer public, through the use of various advanced technologies, information-driven processes, information analysis capabilities and implementation of “smart” algorithms in various processes in the insurance world, reducing the use of documents and printed forms. Efficient and effective for the benefit of the customer.
In order to realize the business strategy, it was decided to separate the two operating arms. One arm, which will concentrate on initiating, developing, marketing and selling new technologies and models for the digital platforms in the insurance and finance industry in Israel and around the world, which will also initiate the expansion of business operations abroad through the company (WeSure Global Tech). As an insurer, in the subsidiary Vishur Insurance Company Ltd.
During October 2020, the group established two subsidiaries of WeSure USA Holdings and WeSure Digital Insurance Services Inc, which are 100% owned by WeSure Global Tech, for the purpose of expanding the group to the US elementary insurance market. By doing so, the group may join other digital insurance companies operating in the US “B (some were established by Israeli entrepreneurs), including: HIPPO, Next Insurance, Lemonade, Metromile, Root and others.
In contrast to other projects, the WeSure Group’s action plan included the establishment of an activity first in Israel as an insurer, despite existing barriers in the market, and the establishment of the business model, with appropriate technological capabilities, and only then launching in the US. Insurance in Israel, a precedent-setting figure in relation to the global arena.
The group has formulated its expansion and entry-level strategy in the US after extensive work with a world-leading consulting firm. According to the prospectus, the company expects to receive an MGA or Insurance producer license in certain US states as early as the first half of 2021.
In Israel, the group received its insurer’s license during 2018. The group has advanced insurance systems, which support all stages of the transaction, combining quotation, joining, customer service, handling insurance events and payment of claims. The group operates in a hybrid format with a variety of distribution channels, combining process optimization processes for the consumer. The technological model allows it to adapt the processes to almost any branch of general insurance in a relatively short time to market.
The insurance company operates in direct marketing as well as through business collaborations, including through insurance agents with a digital orientation. It stands out as the first insurance company where all of the company’s technology systems, including the core systems, are fully clouded.
At the beginning of its operations, the subsidiary Wyshor’s activity focused mainly on B2B activity through dedicated digital platforms in the field of car insurance with fleets, collectives and large and medium-sized business customers, since part of the group’s global plan is to operate in the US.
At the end of October 2019, Vishor also launched its B2C platform to the general public, and in July 2020 it also launched the B2C system in the field of home insurance products (structure, content and mortgage incidental insurance), including IoT-based smart home insurance product (in collaboration with Bezeq). Vishor intends to continue to develop its activities in other areas of insurance, including risk life insurance, in the coming years.
The data in the consolidated financial statements show the company’s success in generating significant growth and achieving an operational balance from the insurance business within a very short period. In the first nine months of 2020, the premiums earned by the company grew by more than 120% and amounted to approximately NIS 120.6 million, compared with approximately NIS 53.6 million in the corresponding period last year.
In the first nine months of the year, the company recorded gross premiums of NIS 184.1 million, compared with NIS 83.5 million in the corresponding period last year. In the third quarter of 2020, the Company continued to grow and recorded significant growth in its earnings from earned premiums, which amounted to approximately NIS 57.6 million, compared with approximately NIS 20.8 million, an increase of approximately 177%.
According to the financial results in the consolidated financial statements as of September 30, 2020, despite its relatively short period of activity, the company moved to profitability in the third quarter of 2020, with a total profit after tax of approximately NIS 2.6 million. The Group’s total assets amounted to NIS 434.4 million, an increase of 130% compared to December 31, 2019 and the total financial investments cash and cash equivalents as of September 30, 2020 amounted to NIS 195.8 million, an increase of 145% compared to December 31, 2019. .