Alfa Group shareholders are planning to create an Insurtech company that would run online exclusively, without any offices.

RBC reports that the company, which is to be called Mango, will be able to perform as a high-tech marketplace for other enterprises apart from selling its own products.

Alfa Group will fund the startup in the early stages. Preliminary estimates show that the investment might reach USD 10 million.

“The idea of this new insurance company is to have a fresh look on familiar things, using global experience and engaging people with tech education. We want to change the existing market and create new digital insurance markets, where we will be sole leaders,” said a representative of Alfa Group shareholders.

Mango’s target audience is people aged 20-40, who prioritize advanced technologies and trust.

Experts say that Russia’s Insurtech startup market (which includes Mango) is still in its infancy compared to international markets, where investment in startups is quite active.

According to a Willis Towers Watson study, USD 5.1 billion has been invested into life and health-related Insurtech startups from 2013 until the end of the second quarter of 2018, while the startups dealing with accident and property insurance received total investment of USD 4.2bn.

U.S. startups had the biggest share in the investment - 58%, their British counterparts got 7%, German and Chinese startups received 5% each, Indian startups had the share of 4% and the French startups got 3%. The remaining 18 percent was distributed among startups from other countries.

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