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Hello Friends! We will be taking a break next week for a little end of summer vacation and will return 8/19. This week we are following EIS’s acquisition of Metromile’s technology, more earnings news and and examination of the staffing challenges in the insurance industry, here are the three things we learned: |
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EIS Acquires MILE Tech from Lemonade EIS, core systems provider, was able to purchase Metromile’s Enterprise Business Solutions (EBS) platform from Lemonade shortly after the closing of the acquisition. Rumors are the price was between $3M-$5M. The technology provides claims automation, fraud detection and data science. Lemonade must feel their current technology is superior. EIS is able to purchase a piece that would normally have taken them R&D dollars to build themselves. There are more tech assets available for established core systems providers and carriers to purchase in the insurtech space with the current market dynamics. |
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Another Big Earnings Week Too many earnings reports to list this week but some of the big ones include: Prudential posts a loss for the quarter blaming on macro economic conditions. Metlife has a sharp drop in net income similiar to many others but looks to be growing group benefits. AXA’s report covered the first half of 2022 and that made a difference with how they compared to their peers, helping to show that bad quarters don’t necessary mean bad years. Allstate and Liberty have net losses, combined ratios creeping up and signaled that rate increases are accelerating. As we’ve said, all of these traditional carriers are built to last and can weather the hard times but we expect to see upstart carriers to accelerate losses as their results are reported next week. |
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Insurance Talent Challenges Insurance Thought Leadership posted a good article citing research from a McKinsey report, explaining how The Great Resignation and other labor market conditions are affecting the insurance industry, labeling it a ‘staffing crisis’. Not sure if we agree on the use of crisis but certainly there are challenges in the insurance industry with attracting the right talent to deal with retirement and other labor market trends. It remains difficult to hire talent with insurance and technology experience. We are helping clients with this and will continue to recommend that compensation and exciting work are priorities to attracting the right candidates. |
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Thank you for following us, we appreciate your feedback and continued support. Stay tuned for more info to come. Until next time… stay safe, stay productive! |