3/26/2021 Three Things We Learned


This week in insurance we are following capital inflow to insurance, a regulatory reaction to use of credit scores and an update on the big story last week.  Here are the three things we learned this week:

  1. A large amount of capital poured into insurance this week.  The largest was Acrisure who raises $3.4B a valuation driven in large part by the AI partner acquisition they made last year.  Worker’s comp insurtech Pie Insurance raises $118M led by Allianz and Snapsheet adds in another $30M both late stage funding rounds completing a big week of investment in the industry.
  2. The issue of insurers using credit scores to factor into personal lines rating is setting up for a big debate between regulators, insurance companies and innovators.  In Washington the state insurance commissioner bans credit scoring for personal property for three years, the industry united to push back in disagreement.  Meanwhile, innovative companies like Credit Karma are looking to help consumers with their credit scores and sort out the bad actors and Root want to use proprietary telematics in place of credit scores.  Innovation not regulation will find a way forward.
  3. And finally an update to the big story from last week.  Hartford rejects Chubb $23B offer but this may not be the end of the story.  As our friend Ian lays out scenarios for how this could play out in the future.  There are 3 prizes awaiting potential buyers: small commercial business, personal lines (AARP) and group benefits.  We have seen similar businesses change hands lately that could make these scenarios a reality.

Thank you for continuing to follow us.  Your feedback is always welcome on topics and insights you would like to hear.  Next week we will release our business-oriented operating model framework and a series of supporting blog posts. Please schedule a meeting with us if you would like to discuss anything further.  Stay productive, stay in touch!