How Marshmallow Insurance is Making Insurance More Inclusive

Insurance has long been a cornerstone of financial security, yet traditional models often exclude marginalized communities, immigrants, and those with non-standard backgrounds. Marshmallow Insurance, a London-based insurtech startup, is challenging this status quo by leveraging technology and data to create a more inclusive insurance ecosystem.

The Problem with Traditional Insurance

High Barriers for Immigrants and Expats

For many immigrants, securing affordable insurance is a struggle. Traditional insurers rely heavily on domestic credit scores and driving records, which newcomers often lack. This creates a vicious cycle where those who need coverage the most are either denied or forced to pay exorbitant premiums.

Bias in Risk Assessment

Conventional underwriting methods often embed unconscious biases. Factors like ZIP codes, surnames, or even occupation can unfairly influence premiums, disproportionately affecting low-income and minority groups.

Lack of Flexibility

Standard policies are rigid, failing to accommodate gig workers, digital nomads, or people with irregular income streams. This one-size-fits-all approach leaves many without adequate protection.

How Marshmallow is Disrupting the Industry

AI-Powered Underwriting

Marshmallow uses machine learning to analyze alternative data points, such as international driving records, rental payment history, and even social media behavior (with consent). This allows them to assess risk more accurately without relying on outdated metrics.

Fairer Pricing Models

By removing discriminatory variables, Marshmallow ensures premiums reflect actual risk rather than demographic stereotypes. Their algorithms continuously learn, refining quotes to be as equitable as possible.

Designed for Global Citizens

Whether you’re an expat, a freelancer, or someone rebuilding credit, Marshmallow’s policies adapt to your circumstances. Features like pay-as-you-go car insurance and short-term coverage cater to modern, mobile lifestyles.

Real-World Impact

Case Study: Supporting Refugees

In partnership with NGOs, Marshmallow has piloted programs offering discounted policies to refugees. By accepting UN documentation as proof of identity, they’ve insured hundreds who would otherwise be uninsurable.

Empowering Gig Economy Workers

A 2023 survey revealed that 68% of Marshmallow’s gig-worker customers had been denied coverage elsewhere. Their customizable plans allow drivers, delivery personnel, and taskers to scale coverage with their workload.

The Road Ahead

While Marshmallow’s approach is revolutionary, systemic change requires industry-wide collaboration. Their open-source initiatives on bias-free underwriting are a step toward broader reform.

As climate change and geopolitical shifts increase migration, the demand for inclusive insurance will only grow. Marshmallow’s model proves that profitability and social impact aren’t mutually exclusive—they’re the future.