Hi Friends, Spring Conference season is rolling along!
This week, we returned to the perennial Insurtech NY Spring Conference.
After the long, cold winter, this has always been a great place to reconnect and get our 2025 strategy going with trusted friends.
I truly appreciate the positive feedback I received from many of you on this content. It is rewarding to hear that you get value from it, and being a trusted voice in your inbox is something I hold very close to my heart.
This week was a little slower in the new cycle. There were still important items to follow, including investment trends in AI and MGAs and Root forming a partnership. At the same time, Lemonade announced potential growth in the auto segment and a Bain Capital report on the growing protection gap.
Let’s dive in and explore three things we learned this week.
AI and MGAs: The Premium Growth Duo Investors Can’t Ignore
The capital keeps flowing toward startups that blend AI capabilities with nimble MGA strategies—and for good reason. Just this week, FurtherAI raised $5M to advance its AI-powered underwriting and decision tools aimed at improving performance in commercial insurance. In fact, I was surprised to hear they have already acquired an insurance carrier customer. With all of the options out there from other AI solution providers it is noteworthy they were able to stand out and find a match to their value proposition.
Meanwhile, Vivere Partners closed a $7.5M Series A to launch a tech-forward specialty insurance platform that helps carriers and reinsurers drive premium growth through modern distribution. Vivere Partners is a specialty insurance platform focusing on niche lines of insurance. The company aims to address persistent challenges in the insurance value chain, such as misalignment and lack of transparency, by integrating strong underwriting practices with advanced technology. Investors like Greenlight Re recognize the transformative potential of combining deep insurance underwriting foundations with differentiated technological approaches
The common thread?
Investors are zeroing in on platforms that not only streamline operations but also produce top-line results. MGAs with embedded AI are proving to be high-leverage plays for carriers and reinsurers eager to expand into niche markets or optimize risk selection. This trend isn’t just about efficiency—it’s about revenue acceleration powered by smarter tools and sharper execution.
Lemonade and Root and Lemonade Take Bold Swings at Auto Insurance
The auto insurance market is showing signs of opportunity and is primed for a digital makeover. Root and Lemonade showcased moves and opportunities. Root insurance is going deep into embedded distribution. In a newly announced partnership with Hyundai Capital America, Root will integrate its auto insurance offering directly into Hyundai’s finance and vehicle purchase ecosystem. This move is more than a distribution play—it’s a strategic alignment that could give Root access to a highly targeted customer base right at the moment of purchase, while Hyundai enhances its customer lifecycle value.
Meanwhile, Lemonade recently revealed it has 700,000 customers on its car insurance waitlist, which signals pent-up demand for its customer-centric, tech-forward approach. While rollout has been intentionally measured, the scale of interest underscores Lemonade’s brand power and the appetite for simplified, digital-first coverage.
What connects both plays is a common vision: leveraging innovation, data, and user experience to revolutionize how auto insurance is sold and serviced. These digital companies can capitalize on the elevated rate environment in their pursuit of increasing topline premium.
Bain Sounds the Alarm on Insurance Coverage Shortfalls
Bain & Company, which is separate but related to a major investor in the insurance segment, just dropped a powerful report highlighting one of the industry’s biggest long-term challenges: the growing protection gap. Their message is clear—while risks are rising, insurance coverage isn’t keeping pace.
According to Bain, by 2030 only 25–33% of natural catastrophe losses will be insured, and less than half of the population will have adequate mortality coverage. Cyber risks are accelerating even faster, with ransomware damages projected to exceed $250 billion over the next six years. The core issue? A mismatch between how coverage is structured today and how risk is evolving.
But Bain isn’t just waving red flags.
The report outlines a path forward: insurers must adopt new business models, lean into risk prevention, and better collaborate with governments to manage systemic risks. It also emphasizes that AI and unstructured data offer powerful tools to close these gaps—particularly in underserved and emerging markets where affordability and access remain barriers.
This isn’t just about plugging holes. It’s a call to innovate, rethink distribution, and build products that match the moment. In a market where capital is still flowing toward AI-native MGAs and embedded models, bridging the protection gap may be the next frontier of growth.