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The Monthly Claim – May 2021

By Emily Halstenberg | May 17, 2021

The Monthly Claim – May 2021

A roundup of notable news and transactions in the Insurance and InsurTech sectors

Industry Updates

The best articles from around the web for Insurance industry leaders

Market Data: Global InsurTech Investment Reaches All-time High of US$2.55 billion in Q1 2021 via Willis Towers Watson

  • Global investment in the InsurTech sector reached a new quarterly high of US$2.55b during the first quarter of 2021 according to the latest report from Willis Towers Watson.
  • Eight companies accounted for more than $1.13b in funding during the quarter, 44% of the total raised. That marks a new quarterly high for the number of mega-round fundraisings of $100m or more.
  • Next Insurance, Coalition, Zego, Sidecar Health, Pie Insurance, Clarify Health, Corvus Insurance Agency, and TypTap all raised sums equal to or greater than the threshold, propelling Coalition and Zego to billion-plus “unicorn” status.

Market Moves: Lemonade Revving Up to Enter Car Insurance Market via Insurance Journal

  • Lemonade, the insurance company that uses artificial intelligence and behavioral economics, plans to add car insurance to its current renters, homeowners, pet, and life insurance offerings in the U.S.
  • This is the company’s third expansion into a major new insurance category in less than 12 months, starting with homeowners products, adding pet insurance in the second half of 2020, and term life insurance in the first half of 2021.

Trends Disrupting the Insurance Industry, Part 2 - Blog | Planview
Source: Google Images

Industry TrendsBenefits of InsurTech to the Consumer via Born2Invest

  • The benefits of InsurTech are often gauged solely through the eyes of the insurer. This article by Born2Invest highlights the benefits to consumers.
  • Benefits include more efficient processes, enhanced convenience, improved customer experience, lower rates, and increased security.
  • Ultimately, a better customer experience provided by InsurTech could be a differentiator for many underwriters.

Industry Trends: Post-COVID Customer Focus Presents ‘Perfect Opportunity’ for InsurTechs via Insurance News

  • Echoing the sentiment in the previous article, an interview with Grant Peters reveals that COVID has “sped up changes in consumer demand and buying behavior in insurance, ‘just like any other industry’.”
  • Specifically, consumers want more “flexible and bespoke products” such as “usage-based or needs-based” coverage options.
  • Peters says the trend was there before COVID, but it’s accelerating and will continue to do so.
  • Importantly, Peters suggests that traditional insurers should be willing to entertain the outside perspective of InsurTech providers: “But it is important, and I think insurers would agree with this, to also get that external lense and input from outside the industry on a continuous basis and that’s what InsurTechs or bigger tech platform owners can bring to the Insurance industry.”

M&A Outlook

Insights and intelligence on recent notable industry transactions.​​​

U.S. InsurTech Zywave Acquires Risk Management Solutions Provider Enquironvia Crowdfund Insider:

  • U.S. InsurTech Zywave recently announced it has acquired Enquiron, a provider of risk management and consultative business solutions.
  • Founded in 1996, Enquiron notably serves more than 100 of the top P&C, healthcare, and HCM organizations in the U.S., providing on-demand risk management solutions in the areas of human resources, healthcare, retirement, cyber, etc.
  • The Enquiron acquisition marks Zywave’s fifth in less than two years.

Porch completes $100M Homeowners of America Acquisition, Doubling Down on Insurance Marketvia GeekWire:

  • Porch Group, the Seattle-based home services software company, completed its $100m million acquisition of Homeowners of America Inc.
  • This marks Porch Group’s biggest deal since going public at the end of 2020.
  • Based in Irving, Texas, Homeowners of America operates in six states but is licensed to operate in 31 states. Porch says it will use the acquisition to build its national footprint in the home insurance market.
  • The $100 million acquisition of Homeowners of America included $21.7 million in Porch stock, with the remainder in cash.

The Future of Shaking Hands. The future of shaking hands. | by Sharaf Sheik-Ali | Change Your Mind Change Your Life | Medium
Source: Google Images

​​​See our latest Sectorwatch research reports for a comprehensive list of Insurance industry M&A activity and valuation trends.

About 7 Mile Advisors

7 Mile Advisors provides Investment Banking & Advisory Services to the Business Services & Technology industries globally. 7 Mile Advisors advises on M&A and private capital transactions, and provides market assessments and benchmarking. As a close-knit team with a long history together and a laser focus on our target markets, 7 Mile Advisors helps its clients sell companies, raise capital, grow through acquisitions, and evaluate new markets. For more information, including research on the M&A markets, visit www.7mileadvisors.com.

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