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Greetings Friends. Thankfully this was a slower week than the past few. Still we followed many news items including Hippo earnings, a Simply Business / RLI product launch and Acorns raising $300M. Here are the three things we learned: |
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Hippo Earnings Hippo released earnings that told a similar story to that of the other public insurtechs, growth but at a cost. They were able to lower their loss ratio by 4% but still spend nearly $2 for every $1 of premium they write. That is higher than Root and Lemonade. They will continue to pursue technological advantages with their product and partnerships with home builders and other channel partners. All of these high loss ratios just don’t seem to be sustainable. |
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Simply Business / RLI Launch Home Business Product Digital agency, Simply Business partners with RLI to launch a home-based business product. The Great Resignation has created a large market for insurers who can package tailored coverages and find a digital channel to distribute. This comes against the backdrop of employers finally starting to announce ‘back to the office’ plans. That may lead to more resignations and opportunities for small commercial insurers. |
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Acorns Raises $300M Fintech saving app Acorns raised $300M after previously shelving a SPAC IPO changing course to go the traditional IPO route later this year. Though not yet in insurance they face similar challenges with customer acquisition cost and look to be expanding their product portfolio. Could they be interested in adding and insurance offering? There are insurtech distribution platforms available to acquire but likely at sky high valuations. |
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