Personal auto

The auto InsurTech blamed the higher loss ratio on an industry-wide spike in frequency and severity trends, larger inflationary pressures and an increase in miles driven.

Lemonade expects that Metromile will be a key to run faster through a competitive auto insurance market while assuming fewer risks on the road.

InsurTech shares trade mixed in response to Lemonade-Metromile combination.

Lemonade CEO Daniel Schreiber told analysts that the Metromile acquisition will put the InsurTech “at the vanguard of car insurance”.

Lemonade will acquire Metromile in an all-stock transaction that implies a fully diluted equity value of approximately $500mn.

Fronting carrier Obsidian Insurance has signed a deal with InsurTech MGA Loop to launch a new personal auto insurance product powered by artificial intelligence, Inside P&C has learned.

Personal lines giant Allstate is increasing rates for its auto insurance business in response to rising loss severity that has hit the segment, the firm’s CEO Tom Wilson said.

The personal auto product enables customers to bundle car insurance with home, pet and life policies.

The executive said Progressive was taking steps to address “persistent underperformance” in its property segment and emphasized the need to avoid concentrations of risk in areas with significant catastrophe exposure.

Excessive speed and distracted driving are among some of the monsters scaring drivers and passengers this spooky season.

Capping the firm’s positive quarterly results, Travelers noted a strong but moderating rate in the business insurance segment in a positive read-through for commercial lines carriers.

PIF growth is slowing as the firm sees worsening loss-cost trends, and this quick response will likely allow it to outperform peers again.