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Hi All! We will be taking next week off and hope you are too to enjoy Thanksgiving. As always we are thankful for you and hope you rest and enjoy your loved ones. This week we are following Swiss Re’s state of industry report, Hippo earnings, Cat and Cyber outlook along with some bonus material. Here are the three things we learned: |
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Swiss Re Report & Autonomous Vehicle Partnership Swiss Re supplied us with a global insurance industry outlook report via their research institute. The outlook is positive and they predict what most economists agree with that the economy will grow and so will premiums across P&C and L&A with businesses and individuals focused on risk management in the post-COVID area. The other news is that they are partnering with a Chinese tech giant Baidu focused on autonomous vehicle technology. |
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Hippo Loss Ratio & Expenses A Problem? We just got around to looking over Hippo earnings and it tells a similar story to other public insurtech carriers. High expenses to get their brand out there and penetrate the market along with very high loss ratios are leading them to big losses that don’t seem to be reversible anytime soon. The loss for the first 9 months of 2021 is $310M and is starting to accumulate into a large number. How many public dollars that are feeding these insurtechs have been lost so far? Maybe over the break we can make an exact calculation but it exceeds $2B. |
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AON Reports US Severe Weather Losses Top $20B An AON report on global catastrophe losses for 2021 through October shows that the US has already passed $20B in losses. It has been an expensive year and October a rough month. The winter months ahead may bring more of the same from last year which saw the Texas Freeze and other events. The other major threat we have seen is Cyber and new this week is that insurers are halving the cover provided for ransomware attacks to avoid major losses. |
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A Bonus #4 comes from our friends at Coverager announcing that Experian will acquire auto / home comparison startup Gabi for $320M. Make sure to read their thoughts on distribution being what matters most in insurance. Thank you for following us, we appreciate your feedback and continued support. Enjoy Thanksgiving, see you in December! |