3 Things – NRG Acquires Vivint, Next CIO & 2023 outlook

Hello Friends!  Here is your weekly update from us on interesting topics in insurance.  This week we are following NRG acquiring Vivint Smart Home, Next making a strategic hire and 2023 rate outlook along with insurtech transition, here are the three things we learned:


NRG Energy Acquires Vivint

Not the typical acquisition we would see in the insurance space but energy firm NRG made news this week announcing they would acquire Vivint Smart Home for $2.8B.  Why is this relevant to insurance?  You may be asking.  The answer is that Vivint was starting an insurance company by hiring an industry veteran earlier this year.  We have not heard much about what they have done since but it is interesting to see a smart home company turned energy company owning an insurance business where they can use IoT and other customer data they would acquire during their normal course of business to create unique property / homeowners coverages.  These types of ventures could have a leg up helping homeowners manage risks and avoid claims.


Next Insurance Strategic Hire 

Next Insurance announced the hiring of the company’s first Chief Insurance Officer.  The individual selected is an industry veteran and will focus on product development and automation.  Next is backed by traditional insurers and has been taking a good path to grow methodically.  His background at MetLife P&C / Farmers will serve him well in this new role.  MetLife was doing embedded before it became a trend.  When they already had their life and health products embedded into employee benefits they used that as an opportunity to also embed personal lines P&C products like home, auto and umbrella adding to the payroll deduction.  So it would appear embedded is the strategic direction for Next and he is the person to take them there.


2023 Rate Predictions and Insurtech Trends

We are reading many articles on the outlook for the industry as 2023 draws near.  Of course everyone is keeping a cautious eye on the economy.  In general rates seem to be increasing but WTW has a report, created from a survey, detailing forecasts for 30 lines of business.  As for the world of insurtech, we have seen downward trends including layoffs and falling share prices.  As we write this ROOT has fallen to a new low as their potential bailout partner Carvana is near bankruptcy.  2023 will bring Insurtech transition as described here in this two-part article 1.0 post-mortem to 2.0 (re) rise.  The insurtech movement will continue and favor those that focus on writing profitable business and creating true innovation.

Thank you for following us, we appreciate your feedback and continued support.  Stay safe in this world, take care of each other and good luck!