Adoption of Virtual Banks and Insurers

Adoption of Virtual Banks and Insurers 36 Survey Findings Adoption of virtual insurers This survey was conducted in June 2020 and included only two virtual insurers that launched their operations in 2019, Bowtie and Avo. The survey did not include the other two licensed virtual insurers, OneDegree and ZA Insure. They received their licenses in April and May 2020 respectively, shortly before the survey started. We asked the respondents whether they were customers of Bowtie or Avo Insurance. 95.7% of the respondents (see Exhibit 15 below) replied they have not purchased any products from either of these two virtual insurers. In this highly competitive insurance market, these new entries will take time to establish their brands and creditability. At the time that this survey was conducted, the vast majority of customers had not purchased any products from virtual insurance companies. Exhibit 15 Adoption of virtual insurers Virtual Insurer Customers 4.3% Non-Virtual Insurer Customers 95.7%