Observations & Trends in P&C Insurance

In the last year or so, investors turned hot and cold on insurtech valuations. If IPOs were hot, SPACs were even hotter, but reality came knocking – knocking out several new entrants and the idea that insurance can be delightful…. We’ve seen startups try to delight consumers with an invisible product in the first iteration of the insurtech movement; now, some startups are simply going where customers are already engaged…via ‘embedded insurance.’ 

Through its strategic partner and investor Carvana, Root introduced an embedded car insurance product last year. Since then, Root has laid off 330 workers, reducing the size of its inside sales force by 75%. The plans to go public by Policygenius, Kin Insurance, and TypTap have been abandoned. Historically speaking, Lemonade, which debuted at $29 per share in July 2020 and hit an all-time high of $163 in February 2021, is currently selling under $23.

The difficulties faced by insurtechs have recently come to light, indicating a challenging fundraising environment for newcomers as a result of inflated valuations. This research report distinguishes the trends from the fads, providing an overview of key trends impacting P&C players.

Phasing Out Sales of Gas-powered Cars05
Mega Insurance Rounds – Unusual for Insurer-investors06
Two Billion Dollar Moves10
U.S. Dominates Insurtech Investments13
No Barriers to Entry15
Real Estate is a Real Challenge16
Here to Rescue Agents18
Mega Brokers Turn to Transactional Insurance20
First Full-stack Cyber Insurer23
Auto Dominates in Alternative Distribution25
Automakers Improve Insurance30
Car Data Companies Seeking Insurers31
Falling Homeownership Rates32

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