InsurTech 2050 | Hedi Mardisoo, Cachet

The goal of the InsurTech 2050 Interview Series is to create a platform where InsurTech founders, CEOs, and top insurance regulators and policymakers share their journeys and insights.

This series aims to:

• Inspire and support fellow founders and regulators/policymakers.
• Foster closer collaboration and understanding between these two groups.
• Provide thoughtful, in-depth discussions on the future of insurance and its biggest challenges.

Today I´m speaking with Hedi Mardisoo from Cachet.

Many thanks for being part of the InsurTech 2050 interview series! Let’s start traditionally—what problem does your company solve in the insurance space, and what makes your approach unique?

Cachet bridges the gap between the platform economy and insurance through adaptive insurance design. From flexible coverage that adjusts to actual usage to a suite of tech that helps operators manage risk, we make insurance more stable, predictable, and growth-friendly. People usually enter InsurTech from one of two angles—either modernizing legacy insurance or introducing fresh, data-driven solutions. We sit at the intersection of both. For the individual platform workers, that means fair, flexible coverage that adapts to real working hours. For fleet operators and platform businesses, it’s about automation, AI-enabled real-time risk insights, and insurance that scales with them. At the core of it, we’re making insurance a valuable tool for the platform economy—not a barrier to its growth.

People usually enter InsurTech in one of three ways: they’ve had a frustrating personal experience with insurance and believe they can do better, they come from a finance/insurance background, or they stumble into it by accident. Before diving into your business model, tell us about your personal journey into InsurTech.

I think my story is a combination of both.

I worked for years in banking, however, I stumbled into the insurance industry from a personal frustration and unfairness angle. I worked as an international marketing manager, where I travelled 15-20 days a month. My life and career didn´t match the typical 21-year-old woman profile, but for banks and insurers, I was just a statistical number. That made me realise how almost none of the data connected to me, as an individual and my behaviour, is used to provide better services, besides marketing to me and mitigating risks against me.

This experience plus my education in information sciences made me curious to understand more about the possibilities of the digital data trail/pattern I leave behind and how different IoT data could support in creating better and more human-centric services.I started researching this in 2014 further to understand how financial services could be made more personalized and data-driven. When I met my co-founder Kalle in 2017, we connected over our shared vision for how the future of work and the sharing economy will become a norm. Initially, we looked at a broader picture - how to bring value to everyone. Kalle’s background as a politician gave him insight into the challenges of the platform economy, and one of the major bottlenecks was insurance. As a result, we realized that a human-centric approach to data and risk could solve many of the problems insurers faced in covering the platform economy. That’s how Cachet was born.

Your business model heavily relies on data, including behavioral data—such as all pay-as-you-drive or pay-how-you-drive models. This enables precise risk assessments, individualized pricing, and can even encourage safer driving. However, some argue this conflicts with the principle of risk pooling (mutualization), potentially leaving certain groups outpriced. Another concern is that as a byproduct, companies also collect e.g. location data—where someone drives, visits medical facilities, etc. What would you answer to these concerns?

Yeah, I get why these concerns come up. Traditional insurance spreads risk across a pool, but that old model doesn’t work in today's platform economy. It creates too much inequity for gig workers and fleet operators and doesn’t help address or manage risks. At the end of the day, failing to adopt a data-driven approach could push the entire platform economy to the point of being outpriced.

Cachet is changing that. Instead of relying on broad assumptions, we use real data to make pricing more platform-, asset-, and human-centric to try to predict and prevent accidents before they happen

Data privacy is a valid concern. We don’t track where someone gets coffee or visits the doctor. We only use what’s relevant to risk and pricing, and we do so transparently—meaning individuals can see the data we collect. The goal isn’t surveillance; it’s making insurance fairer, smarter, and actually beneficial for the people using it.

A related hot topic—and one close to my heart—is Open Insurance. Your model relies on data access from gig economy platforms, and if I understand correctly, these are based on bilateral agreements. How easy or difficult was it to secure these agreements? Have you faced challenges related to data access? Furthermore, what is your take on enabling regulations such as the Data Act and FIDA (which is still under negotiation)? Would these regulations make your business easier, or do they open the market to more competitors, making it more complex?

Absolutely, Open Insurance is a crucial topic—and one we’ve been navigating from day one. Our model depends on real usage and work data access, and while bilateral agreements with gig platforms have been our entry point, they’ve also been a challenge. Many platforms understand the value of sharing data in a way that benefits their drivers or fleet operators. Some hesitate because they don’t have the infrastructure to share data securely and efficiently. Others don’t realize that it’s not really their data—it belongs to their users.

Since we were among the first InsurTechs in the EU to recognize that success isn’t about getting a lot of data from one platform but rather about cross-market data (as there’s no loyalty in the platform economy), platforms trusted us. We also provided their drivers with a solution to a major cost burden.

That’s where enabling regulations like FIDA and the Data Act come in. Standardizing access to relevant data—while keeping privacy intact—is a game-changer. For us, it means fewer roadblocks when building fairer insurance solutions. But, of course, it also means more players entering the space. That’s not necessarily a bad thing. Competition pushes the industry to be better. What matters is that these frameworks are implemented in a way that ensures trust, transparency, and real benefits for those who need insurance—not just another layer of complexity.

At the end of the day, our stance is clear: data-driven insurance should work for the people, not against them. Open Insurance is a step in the right direction, but execution is everything. We still have a way to go—especially regarding technical infrastructure. However, some exciting developments are happening at the intersection of AI and Blockchain/Web3.

Data discussions naturally lead to AI. Every week, I read reports on AI in insurance—ranging from concrete use cases to a fair amount of blue-sky thinking. But what interests me most is the practical application. How much are you actually using AI in your business model?

At Cachet, we use machine learning to enhance our risk-level scoring system, Cachet Pattern. We analyze real behavioural data enriched with various urban, weather, and vehicle-related data points to create a more precise and dynamic understanding of risk associated with asset usage. This allows insurers to offer pricing that better reflects actual driving patterns or fleet operations, rewarding safer behaviour and reducing unnecessary costs. Internally, we use Gen AI across the organization to increase efficiency in our daily work.

When I have heard you speak at conferences or when we have spoken bilaterally in the past, I recall that you always advocate for a "human-centric" approach rather than a "customer-" or "consumer-centric" one. Can you explain to our readers what you mean by that and how it is reflected in your everyday business?

“Customer-centric” or “consumer-centric” are terms we hear all the time, but they can be limiting. These terms define people by their role in a transaction—someone who buys, uses, or interacts with a product. One could say it’s a one-sided conversation.

But people aren’t just consumers. Human-centric means looking at the whole picture—how insurance fits into real lives, not just purchasing decisions. Take platform workers, for example. They’re not just driving for income; they’re balancing multiple gigs, often with a full-time job or studies, and life outside of work. Everyone has a different work schedule and pattern. When a person is willing to share their personal data in exchange for a customized and conditional service, it creates a dialogue.

That broader perspective shapes how we build insurance solutions at Cachet. We are creating means to build future services that enable meaningful “dialogues” with people. AI agency and its development will greatly accelerate this.

There is a significant gender gap in insurance and financial services (beyond funding). Most founders are men, which means exits are male-dominated, and capital often gets reinvested in similar networks—creating a cycle. For example, initially, I considered running this interview series in a zipper format (alternating genders), but I quickly realized how difficult that would be based on my own network. How do we break this cycle so that by 2050, we’re in a better place? What should we be doing today?

Honestly, even asking how we can change this by 2050 is part of the problem… Women started this journey more than 100 years ago—I don’t want to think about how old I’ll be in 2050. 

For you not to be able to run it in zipper format, is the result of over the years, men and also some women in leadership positions being afraid of taking a risk (promoting, funding etc) on female leaders and founders based on real value, but on societal norms and sticking with a convenient safe choice. Breaking the gender cycle in insurance and financial services requires intentional action today. We need equal access to funding, more diverse networks, and leadership roles. Numerous surveys prove that diverse teams outperform homogeneous ones. It’s not about men versus women—it’s about balancing gender and age groups to make better decisions. Change won’t happen overnight, but by shifting how we invest, hire, and mentor today, we can build a more inclusive industry.

Let’s shift to regulation. You’ve been actively involved in discussions on improving the regulatory environment for InsurTech startups—whether at roundtables in Brussels or here in Estonia. I personally see this as crucial, but regulatory processes are slow. By the time change happens, your business model might already be in a completely different place, meaning you won’t directly benefit. So, what’s your motivation? Why do you invest time in this?

Great question. Yes, regulatory change is slow—sometimes frustratingly so. But for me, it’s about more than just Cachet’s immediate needs. It’s about shaping a fairer, more innovation-friendly and competitive environment in Europe to support new economic and business models.I think people underestimate how much of a role insurance plays in making these models sustainable. Incumbents are comfortable with the status quo and existing business models, so InsurTechs have to be the challengers driving change. Regulators should find ways to leverage that. So why invest time in this? Because someone has to. If we don’t engage with regulators, decisions will be made without the perspective of the companies actually building the future of insurance. 

Yes, we might not always see immediate benefits, but we’re laying the groundwork for long-term change. And honestly, that’s part of leadership—pushing for solutions that extend beyond your own company. Plus, being involved early means we can help regulators understand the practical realities of InsurTech. That doesn’t just help future startups—it ensures policies work in practice, not just on paper. My only concern is that InsurTechs still have such a small voice and receive far too little stage time.

From your experience, what are the biggest barriers holding back innovation in insurance? I’m interested in both regulatory barriers—e.g., your company operates under the IDD as a regulated insurance broker. What has been your experience with insurance regulation? Are your challenges primarily at the domestic or EU level? But also beyond regulation—what other obstacles do you see?

Innovation in insurance faces multiple barriers, and while regulation is a significant one, it’s not the only challenge.

While the EU-wide IDD and digital single market generally work well, the devil is in the details. One of the biggest challenges is country-level protectionism. Each country interprets and enforces regulations with its own small variations, creating friction for startups—especially regulated ones—when scaling. How many truly pan-European insurance companies or InsurTechs can easily underwrite insurance across the EU, particularly for MTPL or other regulated covers? Very few.

Secondly, at the domestic level, progress depends on the market. Some regulators are more open to innovation, while others are influenced by legacy players with strong lobbying power, making it harder for new entrants to compete. Additionally, local industry norms—unwritten rules of “we’ve always done it this way”—slow down scaling, as smaller players must adapt to 27 different market practices when forming partnerships and adopting new, data-driven models.

Thirdly, some challenges lie not within insurance regulation itself but in supporting systems. For example, communication with authorities is often only possible in the local language, or local bank accounts may be required, which can be complex to obtain if you're operating under the digital single market without a local entity.

Do you feel regulatory frameworks are keeping pace with InsurTech innovation? If not, what specific changes would you recommend? And from another angle—how do you stay updated on evolving regulations?

Insurance was built for a world of fixed jobs, owned assets, and predictable risk pools. Many regulations were written with traditional insurers in mind, making it harder for digital-first InsurTechs to operate efficiently. We need a regulatory approach that balances consumer protection with innovation, allowing new models to thrive. The economy has changed—platform work, shared mobility, and real-time data-driven pricing don’t fit neatly into outdated models.

For example, regulating e-scooters as cars. Yes, e-scooters are part of traffic, but so are e-bikes and regular bikes, which do not require mandatory cover.

We stay closely involved in regulatory discussions—whether through roundtables in Brussels, local industry groups, or direct conversations with regulators. Being proactive ensures we’re not just reacting to changes but helping to shape them. It’s also about building strong networks with legal experts and other InsurTechs—because when the industry moves together, progress happens faster.

Now, let’s look ahead. How do you think the mobility space will evolve by 2050?

By 2050, mobility will be seamless, accessible, and deeply connected to how people live and work. Personal car ownership will be rare, replaced by shared, on-demand, and autonomous options tailored to individual needs. Insurance and payments will be invisible, built according to your personal everyday mobility experiences.

  Cities will be cleaner, with policies prioritizing sustainability and efficiency over congestion. The focus will shift from vehicles to people—ensuring mobility is safe, affordable, and inclusive. To get there, we must rethink access, ownership, and financial models today, building systems that serve everyone, not just a few. The future of mobility is human-first.

And more broadly—what will insurance look like in 2050? How will technology, customer needs, and regulations change? How will customer expectations shape insurance products and services in the coming decades? What current trends or emerging technologies do you believe will define the future of insurance?

The way I see it, by 2050, insurance will be seamless, adaptive, and embedded into everyday life—activating only when needed. AI, automation, and real-time data will replace outdated policies with dynamic, usage-based coverage. Insurance will work in the background, adjusting instantly to real risks.

Key trends shaping this future? We will live in a decentralized world, where individuals won’t need to go into apps or websites—everything will be carried out based on need or command via agentic logic. The winners won’t just sell policies; they’ll create or plug into smarter, safer ecosystems. And that’s exactly what we’re building at Cachet.

Given this vision, how can regulators balance consumer protection with fostering innovation in the long term? And again, what are the practical steps to be taken today?

Regulators need to strike a balance between protecting consumers and allowing innovation to thrive. The EU must function as a whole, with harmonized regulations across both EU-wide and local law.

The “north star” should be a flexible, human-centric, risk-based approach that evolves with technology rather than trying to control it with outdated frameworks.

One of my goals with this interview series is to provide actionable insights for other founders. So, what is the most important lesson you’ve learned as an InsurTech founder so far?

In the insurance business patience is a virtue.  It’s also worthwhile to challenge everything that isn’t explicitly stated in the law, as there are standards and definitions established by the industry themselves.

What’s one mistake you’ve made that others can learn from?

When entering a new market, make sure you understand the level of digital literacy in that society. Coming from Estonia—one of the most digitalized societies in the world—buying services online seemed like a given. In other markets, this expectation was completely different. We learned this the hard way.

If you could give one piece of advice to someone starting or considering an InsurTech company, what would it be?

When I left banking and started in insurance, a friend told me: “FinTech is for kids, InsurTech is for grown-ups.” I’m not sure I’ll ever fully agree or disagree with that, but it certainly gives me energy and motivation when I need it the most. 🙂 Building an InsurTech is hard, but rewarding.

Productivity tips are always fascinating—we all have our own “secret” tricks! And for founders, managing a million different priorities is a constant challenge. What’s your go-to productivity hack—whether it’s a tool, app, or daily habit?

During the first years, all the best productivity apps, for me Superhuman email app, AI note taker and task lists, but 3 years onwards, only one thing matters, keep your life balanced, as it's a marathon. Sleep well, eat well, exercise, and spend time with your friends and family. Rest will fall into place.

Another topic that’s gaining more attention—rightly so—is mental health. How do you ensure work-life balance and maintain mental well-being as a founder?

I spend four months a year traveling for work, four-five months at home, and three months working from my countryside home in nature—like most Nordic people. Make sure you maintain at least one hobby.

What’s one book, podcast, or resource that has inspired or helped you recently?

“The Culture Map” was an inspiring book I read, as our team of 24 includes nine nationalities. But recently, I’ve been listening more to podcasts on history, politics, and macroeconomic topics—such as climate change, emerging technologies, and broader trends.

To wrap up, please share one concrete ask for the audience. Whether you’re looking for a new CTO, raising an investment round, or reaching out to regulators—this is your opportunity to make your request.

We will be looking for talented people who have experience working at the intersection of insurance underwriting & claims to join our team. (Send me your CV)

Thank you so much!