Sources suggested that the layoffs at Buckle are more severe than at other InsurTechs that instituted headcount reduction programs with a view to preserving cash.
Not only could raising venture debt become increasingly difficult for the sector, but InsurTech companies could also struggle to access their credit lines.
Management was speaking after the announcement that Stone Point finalized a deal with Truist to acquire a 20% stake in its insurance broking business at a valuation of $14.75bn.
Inside P&C breaks down some of the key themes and commentary from commercial, personal and specialty line carriers, as well as brokers, during the season so far.
The move follows commentary on loss cost inflation exceeding rate rises in Q4 across Markel’s portfolio, driven by lines including public D&O and financial institutions.
Established players are walking away from writing IPO, SPAC and de-SPAC accounts as increased capacity and falling demand in the sub-class causes rates to crater.
The insurer estimated a 109% combined ratio for Kemper Auto in Q4, which included $7mn of adverse legal cost development for the first three quarters of last year.
AmFed’s Pie Development alleges that Pie co-founders Dax Craig and John Swigart misappropriated trade secrets which led to the founding of the InsurTech.
2022 marked a reversal from last year’s unprecedented levels of global investment in InsurTech as the macroeconomic scenario flipped and investors put lossmaking companies under a magnifying glass.
Even if venture debt has always been around, sources said InsurTechs are approaching the market in different ways, as they struggle to raise equity rounds at attractive valuations.
The intention to potentially sell Attune illustrates Coalition’s desire to refocus its story on cyber – where valuations have held best in harsh market conditions for InsurTechs.
Inside P&C Honors 2022 recognizes outstanding achievement in the US and Bermuda market and reinsurance and was for the first time held in person in New York City.
The event, which recognized outstanding achievement in the US and Bermuda market and reinsurance, was for the first time on September 28 at Guastavino’s in New York City.
Themes from this year’s ITC conference in Las Vegas also included the exit of less educated investors, increased appetite for venture debt and the allure of cyber.
Sources noted that competition has expanded from excess layers into the primary market – and that has been a major development since the beginning of the year.
Cyber continued to register the largest increase in the period, while D&O saw a small price drop compared to a moderate increase in the previous quarter.
CEO Jack Kudale recognized there still is a supply issue in cyber and noted that Cowbell is considering options such as the ILS market and reinsurance sidecars.
The executive named cat events and persistent levels of high inflation as two other factors that could “put an unforeseen dent to our loss ratios for the next few quarters”.
The executive was speaking during the company’s Q2 2022 earnings call, after it reported a 107.9% headline combined ratio for the period, marking a 12.2-point deterioration YoY.
Last November, Lemonade struck a deal to buy the Californian InsurTech in an all-stock transaction, implying a diluted equity value of $500mn, or $200mn net of cash.
Lemonade in November agreed to buy the Californian InsurTech in an all-stock transaction, implying a diluted equity value of $500mn, or $200mn net of cash.
The launch comes as the early crop of InsurTech MGAs and startup carriers struggled with fundamental insurance metrics, over relying on growth, and neglecting profitability.
The cyber MGA InsurTech today announced the expansion of its relationship with Palomar through a multi-year program deal with the carrier’s E&S operation.
Peru’s state-owned firm Petroperu has said that the broker designated to run its account was chosen as a result of a “technical evaluation”, following local media and Inside P&C reports that WTW had won with the highest bid in the process.
The news comes as the steep correction that public tech valuations have suffered year-to-date spills over into the private InsurTech market, and private VC funding dries-up.
Following his promotion, Hippo’s new CEO discussed InsurTech public market conditions, the funding environment for private companies, inflationary pressures and loss ratios.
Companies that had easily lured investors with major premium growth are now scrambling to prove their fundamentals work, and are sitting out fundraising to avoid a down round.
Co-CEO Wininger said Q1 loss ratios were “significantly impacted” by inflation, as while claims are quickly adjusted for inflation, rates can take months to adjust.
The Santa Barbara, California-based InsurTech uses proprietary algorithms and AI to provide insurers with predictive analysis data to automate claims decisions.
He will focus on expanding HudsonPro’s offerings in the ancillary sector and build a new platform to address the unique needs of small healthcare businesses.
It is understood that Next decided to discontinue the process after it proved an uphill battle to secure funding at an attractive valuation amid volatile market conditions.
The (re)insurer completed a $450mn redemption from hedge fund exposures, to be deployed in cash and fixed income, with an additional $100mn redemption in January 2022.
Direct losses for personal auto liability spiked by 14.1% in the period, while the industry’s combined ratio deteriorated to 99.5% from 98.8% last year.
New offerings within its platform include cloud management of property data, AI-driven geo-coding, COPE, and cat-risk data, data insights and benchmarking.
In its first annual home-based business survey, Axis commissioned a poll of 1,000 business owners to understand more about their motivations and challenges.
While the report categorized auto as “challenging” overall, cyber remains the most problematic, with Aon predicting that rate pressure will continue for at least the first half of 2022.
Investors are taking a second look at private valuations, as they realize that an IPO or a SPAC exit is no longer an attractive option in the short term.
Thompson has held leadership roles at insurance and financial organizations such as Sun Life Financial US and Lincoln Financial Group, most recently serving as CEO of M Financial Group.
The Washington state regulator’s permanent rule to ban the use of credit scoring data for three years is turning the Washington insurance market into “chaos”, APCIA said.
Harper’s comments follow Kin and Omnichannel mutually agreeing to terminate their previously announced SPAC merger deal due to 'unfavorable market conditions'.
Recently terminated Root employees took to social media platforms to announce their dismissals, after the company eliminated about 20% of its workforce.
If the vote is successful and all closing requirements are satisfied, the combined company will be named Kin insurance and is expected to be listed on the NYSE under the ticker symbol “KI”.
The three carriers are 21st Century Indemnity Insurance Company, 21st Century Pacific Insurance Company and 21st Century Auto Insurance Company of New Jersey.
Although Aon views the market as “favorable” relative to this time a year ago, pressures related to claims capacity and coverage rates continue, albeit to a lesser extent.
InsurTech Slice Labs and workers’ comp MGA Appalachian Underwriters have expanded AERO’s contractors’ general liability insurance to two additional states – California and Colorado – the companies said.
Prior to joining Archipelago, Martin served as a vice president at Wired and Kim was the senior director of the investment strategy group at ICONIQ Capital.
Insurance chief Lori Bailey says Corvus has looked at going full stack, but there are still opportunities in the MGA/program for cyber InsurTechs to leverage their capital.
Carl Bauer-Schlichtegroll said InsurTechs in the IPO market attracted a lot of investors who did not understand the complexities of the insurance market.
The classic car underwriter will use the proceeds from its most recent fundraise to spur organic growth, and invest in data, technology, and geographic expansion.
In an interview with Inside P&C, Prashanth Gangu also argued that InsurTechs should stay private for as long as possible, and InsurTech MGAs should not rush to transition to full stack until they prove that their business models work.
Kaufman is the third president in Burns & Wilcox’s history, preceded by his father, President and CEO Alan Jay Kaufman, and his late grandfather, Herbert W. Kaufman.
Nunery’s appointment will accelerate Evolution Advisors’ goal to provide greater access to financial services for minority-owned businesses and diverse communities.
