Insurance, Wealth Management and GDPR

Saragossa

Insurance, Wealth Management and GDPR

AXA Venture Partners raises $150 million to invest in start-ups

Insurance giant AXA Group’s venture capital arm AXA Venture Partners (AVP) has pulled together $150 million of funding, intended for investment in early-stage start-ups in Europe, North America and Israel. Specifically, AVP will use this funding to support start-ups related to financial technology, digital health, cyber-security and insurance technology.

This marks the second round of funding raised by AVP – the first fund, raised in 2015 and totalling $110 million, has now been successfully deployed. With this new fund, AXA are looking to support each firm with up to $6 million, enabling them to develop their businesses alongside AXA and any other suitable companies.

John Davies, Team Lead at Saragossa, who works closely with insurance professionals, commented: ‘Insurance is a great example of an area that stands to benefit hugely from digitisation. We’re seeing a constant increase in the number of digital insurance offerings, from self-service dashboard systems which allow people to take out insurance policies and make claims quickly via an app, to systems that use data about customer history to provide more seamless and tailored customer experience, there’s no shortage of exciting new technologies and practices being implemented in insurtech. Hopefully this round of funding for AXA helps the digital transformation of insurance to continue and we see a steady growth in the number of insurance start-ups bringing new ideas to the fore because of it’.

Nutmeg secures £45 million in funding

Digital wealth management firm Nutmeg is set to announce a successful fundraising round of £45 million, bringing the company’s total value up to £245 million.

Goldman Sachs, who just last week led a massive funding round into a cybersecurity skills platform, was again at the forefront, taking the largest stake in the app-based investment management platform, along with Convoy, Hong Kong’s largest financial advisory firm.

As we discussed recently, small wealth management platforms like Nutmeg are continuing to disrupt the finance industry and gain popularity. Whereas in the past, investments and wealth management have only really been available to those select few with substantial incomes as well as financial knowledge, services like Nutmeg lower the barriers to entry and allows anyone to start investing. Nutmeg’s founder, Nick Hungerford, has been quoted as saying that Nutmeg wants its customers ‘to feel like you’re walking into Goldman Sachs with £10m, even if you’re logging on to Nutmeg with £1,000 to invest’. It will be interesting to see how much these smaller businesses will change the industry as a whole over the next year.

Google fined £44 million for GDPR violation

French data regulator CNIL has levied a massive €50 million (£44 million) fine against Google, for failing to sufficiently inform users as to how their data was being collected and processed.

Under GDPR, companies are required not just to gain consent before processing personal data, but also to maintain transparency and openness about how that data will be used, making at as simple as possible for people to learn what is being done with their personal information. Google has been accused by two separate privacy rights groups for failing to provide this transparency. The information Google was legally required to provide was ‘disseminated across several documents’, and thus was not sufficient to grant Google a legal basis for personalising adverts based on user data.

Google is not the only major company to have fallen foul of GDPR recently. Amazon, Apple, Spotify, Netflix, Spotify, YouTube and others have all been accused of failing to properly comply – in particular where their consumers’ right to access is concerned. European privacy rights group noyb tested eight major streaming services and found that all eight violated GDPR in different ways and to various degrees. In particular, companies were found to have similar problems to Google when it came to providing information in a clear and easily understandable manner, as well as almost all of them failing to provide background information relating to the sources, recipients and purposes of the data being collected. noyb has filed complaints against each of these companies, and if all of these complaints go through, the total penalties levied could amount to as much as €18.8 billion, with some of the more serious offenders paying as much as €8 billion on their own. These numbers make the £500,000 Equifax fine back in 2017 look almost insignificant by comparison, and make it clear to everyone that GDPR is not something to be taken lightly.

Saragossa are a talent provider specialising in the Financial Technology, Financial Operations and Data Science sectors. Our role is to match clients with high calibre candidates. Our work encompasses filling temporary contracts along with building permanent teams and resourcing projects. To find out more, please contact enquiries@saragossa.co.uk or call 020 7871 3666.