From the Editor's Desk
Noteworthy developments for insurtechs include IPOs and mergers. Best’s Review also provides listings and coverage of insurers in India and in the Middle East and North Africa region.
- Patricia Vowinkel
- January 2021
Venture capital has been putting millions of dollars into insurtech startups over the past few years, and now some of those investments are bearing fruit.
Lemonade's shares more than doubled on their first day of trading last July in the company's initial public offering—a performance that surprised many in the insurtech world and paved the way for other startups waiting in the wings.
Although the Softbank-backed online insurer, which was launched in 2016, has been unprofitable, shares have climbed from their IPO price of $29 a share to around $90 in early December.
In late October, auto insurer Root raised about $724 million in its IPO. Shares were priced at $27, but since declined to around $15 in early December. Metromile, a digital insurance platform, said in November it would go public by being acquired by a special purpose acquisition company. And Hippo has said it was tentatively preparing for an IPO in 2021.
Lemonade, Root and Metromile are currently unrated by AM Best. As of press time, Hippo's operating entity Spinnaker Insurance has an A- (Excellent) rating.
While some insurtech startups have been pursuing IPOs, others are seeking out mergers.
In the January issue, Best's Review takes an in-depth look at the insurtech sector and how it is evolving.
“Turning a Corner” examines the deal environment and how it's now the insurtechs that are interested in making acquisitions.
In “A Healthy Dose of Reality,” Best's Review speaks with Adrian Gore, the founder and CEO of Discovery Limited, about the genesis of his company and the challenges COVID-19 is posing to global health systems.
Lloyd's Lab, an insurtech accelerator, is helping insurance startups get off the ground. Find out more in “Laboratory of the Minds.”
While insurers in the United States, London and Bermuda often get the lion's share of attention, insurance is a global business. In the January issue, Best's Review presents listings of insurers in India and in the MENA region, as well as coverage of those markets. See “A Simpler Solution” and “A Disciplined Response.”
Low interest rates are having an ongoing impact on the life insurance sector. In “Burning at Both Ends,” Best's Review looks at trends in the annuity market as some insurers shift their product lineup in response to both the investment climate and consumer demand.
Best's Review also includes information about upcoming insurance conferences and trade shows for 2021. Many have canceled in-person events or have rescheduled them for later in the year, while others are holding events in a virtual format. See “Meeting the COVID Challenge” for more.