3 Things – Capital Flowing, Deals & Partnerships + Bonus – 4/16/2021

Hi Friends!  This week in insurance we are following a large amount of capital as it flows into our industry along with a few other interesting deals and partnerships.  Here are the three things we learned this week:


What Can $4.5B Buy in the Insurance Space?

Japanese insurer Mitsui Sumitomo announces plans to spend $4.5B on acquisitions through 2023, with 60% of that amount to be allocated in North America.  That should be enough to make significant moves to up their presence on the continent like their peer Tokio Marine.  Already an investor in Insurtech Hippo, they will likely find other similar partners as well as traditional carriers or books of business on the selling block.


Speaking of Investment, Another $350M Goes To…

Clearcover, a digital car-insurance startup, closes on a Series D round of $200M and Zebra, a quote comparison site, adds another $150M.  These latest funding rounds give both an implied valuation of over $1B (unicorn status?).  We have highlighted in the past that late stage funding can be harder if you recall the ‘dumb bell’ chart.  These two are showing a mature business models and the ability to be profitable, two things that will always attract investment in this frothy market.


Insurtechs Create Value-Added Partnerships

Non-traditional distribution continues as a trend.  This week a leader in the space, Bindable announces a strategic partnership with Swiss Re’s iptiQ to create an ecosystem of connected insurance products across L&H and P&C.  In M&A news, FRISS acquires Terrene Labs to bolster their offering of AI-powered fraud analytics with commercial lines underwriting risk insights.  We expect to see more of this, as the re-opening boom continues, more insurtechs will look to form bonds to strengthen their offerings.

And finally, a Bonus #4, this article outlines imperative technologies for insurers 2021, we are talking to many of you about these topics and have knowledge and experience to share.  You can schedule a meeting if you would like to discuss anything further.  Stay productive, stay safe and stay in touch!