InsurTech/M&A/Financeđ°/Collaboration
H&Fâs Seeks $30 Billion Valuation of Hub in Fundraising
Hellman & Friedman is looking to raise at least $1 billion in equity from investors for Hub International Ltd., in a potential deal valuing the insurance brokerage at $30 billion, according to people familiar with the matter.
The private equity firm is working with Morgan Stanley and Goldman Sachs Group Inc. on the so-called liquid private placement, the people said, asking not to be identified discussing confidential information. The firm could end up raising more than $1 billion from a range of investors including long-only institutions and limited partners in private equity funds, they said.
Top insurtech funding rounds, February 2025 | Digital Insurance
There were about 50 funding events in the insurtech sector between February 1 and February 28, 2025, according to a review by Digital Insurance.
What follows is a selection of these, focusing on the insurtech and property & casualty sectors that are part of the venture-capital financing model. (Other funding events, such as private-equity infusions, are included in the overall count.)
A portion of the data was sourced from Crunchbase. Other information, including quotes from investing VCs, comes from company announcements. For our previous edition, which covered the month of January, click here. These updates will continue monthly.
Liberty Mutual Insurance to Sell Thailand and Vietnam Operations to ChubbÂ
The insurer characterizes the deal as reflecting its commitment to a focused Asia Pacific strategy.
Liberty Mutual Insurance (Boston) has announced that it has agreed to sell its operations in Thailand and Vietnam to Chubb Limited (Zurich). Thailand is expected to close by the second quarter of 2025 and Vietnam is expected to close in 2026, subject to certain closing and regulatory conditions. The terms of the deal have not been disclosed.
The sale includes LMG Insurance Public Company Limited (LMG Insurance), a top 10 motor and non-life insurer in Thailand, and Liberty Insurance Limited (Liberty Insurance), the largest foreign retail motor insurer in Vietnam. The majority of each companyâs written premiums is motor insurance, and both also offer accident and health and other property casualty products through multiple distribution channels.
Automotive Ventures gains funding from Assurant Ventures
Automotive Ventures gains funding from Assurant Ventures
The venture capital investment arm of Assurant on Wednesday announced an investment in Automotive Venturesâ Mobility Fund II. The fund focuses on identifying and supporting innovative early-stage startups across the mobility ecosystem and will enable Assurant Global Automotive to better support automotive dealer clients.
âWeâre thrilled to have a chance to work with Assurant Ventures in the new fund,â Greenfield said in a news release.
âWe look forward to sharing deal flow, working collaboratively with their team, and co-investing in early-stage startups across the mobility spectrum,â continued Greenfield, who will be on stage multiple times during the Auto Intel Summit that begins on April 8 in Cary, N.C.
Automotive Ventures closely monitors cutting-edge startups focused on the dealership ecosystem, including dealership performance, digital retailing, and aftermarket services.
âAutomotive Ventures provides unique access to a curated pipeline of promising early-stage mobility companies that we may not otherwise discover,â said AJ Fang, partner at Assurant Ventures. âThis investment brings strategic value to our business and presents a powerful opportunity to co-invest in tools and technologies that support our automotive dealer partners in the evolving mobility space.â
Assurant said it is committed to serving a diverse, global network of dealership partners and this investment underscores the pursuit of technologies to support them.
The Automotive Ventures Mobility Fund II is the firmâs third fund. Automotive Ventures has made 39 investments out of three funds and has $35 million under management and typically invests $250,000 into seed-stage mobility startups around the world.
News
N.Y. fines auto insurers $20M for timely reporting failure
The New York State Department of Financial Services has lowered the boom on three dozen auto insurers, fining them a total of $20 million for failing to timely report new and terminated policies.
The information is needed, regulators say, to determine if insurers are complying with state laws, and to improve road safety, and enforcement. The department said it warned the insurers as far back as 2017 that they were not reporting policy information in a timely matter as required by law. The law, passed in 2000, requires auto insurers to report newly insured vehicles to the state Department of Motor Vehicles within seven days, and must report suspensions and terminations within 30 days.
âAccurate and timely reporting by insurers is critical to protecting New Yorkers on the road,â DFS Superintendent Adrienne Harris said in statement. âThese actions demonstrate DFSâs unwavering commitment to holding insurers accountable and safeguarding consumers.â
In consent orders attached to the fines, the DFS said it had met repeatedly with insurers about the late filings and gave the industry multiple âopportunities to address and remediate persistent reporting failures.â
Reporting system called archaic
Insurance companies and trade groups have said the stateâs reporting system is archaic, confusing, slow, and not online. That so many insurers were fined is proof that New Yorkâs Insurance Information & Enforcement System needs to be upgraded and improved.
Several insurers have said they would welcome the chance to work with the state to fine tune the reporting system.
DeSantis stands firm against repealing Floridaâs no-fault auto insurance law
Governor previously vetoed a bill aimed at shifting the state to a fault-based insurance system
Efforts to dismantle Floridaâs no-fault automobile insurance system may hit a roadblock as Gov. Ron DeSantis remains opposed to the proposed repeal. The governor previously vetoed a bill aimed at shifting the state to a fault-based insurance system and has shown no signs of reversing course.
Speaking after his State of the State address last Tuesday, DeSantis reiterated his stance, saying, âIf they have a reform where we can show that itâs going to lower rates, itâs fine. But letâs just be clear. I mean, you know, we know thatâs something that people from the legal and the trial bar have wanted to do. And so why would they want to do that? Obviously, they see that thereâs opportunities for them to make money off of it.â He added, âI donât want to do anything thatâs going to raise the rates.â
Proposed legislative changes
Legislation proposed by Sen. Erin Grall (R-Vero Beach) and Rep. Alex Andrade (R-Escambia County) seeks to eliminate the requirement for personal injury protection (PIP) insurance and instead mandate bodily injury liability coverage of $25,000 per individual, $50,000 per incident, and $10,000 in property damage liability.
Matthew Sellers
Commentary/Opinion
Analyzing 2024's Insurtech Performance: Is a Bubble Brewing?
Are we in an Insurtech bubble
Lights. Camera. Chaos! The Insurtech industryâs 2024 performance could easily rival some of the most dramatic TV classics. Picture this: the boldness of âGame of Thrones,â the unpredictability of âMad Men,â and the surprising plot twists of âThe Twilight Zone.â
In todayâs blog post, weâll dive into the 2024 performances of Lemonade (LMND), Root (ROOT), and Hippo (HIPO) to find out if weâre living in what Alan Greenspan might call a moment of âirrational exuberanceâ for Insurtech stocks. Spoiler alertâthis ride has its highs and lows.
The Star Performers: Who Stole the Show in 2024?
Like the characters in âBreaking Bad,â these Insurtech companies faced their fair share of setbacks but kept pushing towards their goals. Root takes center stage with its trailblazing headline: profitability achieved.Root reported $31 million in net income a dazzling turnaround that sparkles like a Lorraine Schwartz masterpiece, from its previous losses. Lemonade followed with a reported an eye popping net loss of $202 million, while Hippo improved its net loss YOY by 78%, it is still in the shadows of profitability. It had a net loss of $40.5 million. Looks like Root is playing the Walter White of the Insurtech worldâgetting the formula right while its peers are still searching for their breakthrough.
Kaenan Hertz is a professional in the areas of block chain, telematics, wearables, analytics, artificial intelligence (AI) and Insurtech. He has played a key role in innovating many start-ups and established carriers. His advice has been widely appreciated in the financial community, which resulted in multiple quotes and publications in various media.
Legal System Abuse/Social Inflation
Proactive claims management can curb large verdicts: Panel
As ânuclear verdictsâ rise, companies should take a proactive approach to risk and claims management, a panel of experts said.
By tackling incidents before they develop into liability claims and creating company cultures where employees feel comfortable reporting near misses, commercial policyholders can reduce the likelihood of large court awards and settlements, they said.
When disputes do go to trial, earlier efforts to manage the claims process can result in lower payouts, they said Tuesday during a session at the Captive Insurance Companies Associationâs 2025 International Conference.
In many situations, risk managers and claims managers start at a disadvantage when a demand for compensation comes in, said Amy Evans, Seattle-based executive vice president at claims management company Intercare Holdings Inc.
âBy the time you get it, youâre behind the eight ball. The plaintiffs attorney, the claimant, they all know more about their claim than you do. You may not have even know that the event occurred,â she said.
To try and get ahead of potential claims, Revantage Corporate Services has increased reporting of incidents, including near misses, over the past several years, said Adam Miholic, Chicago-based vice president, head of captives and procurement, at the Blackstone Inc. unit.
AI in Insurance
Artificial intelligence is changing insurance - underwriters aren't sure they trust it
The tech is getting integrated into both insurersâ work â and that of their clients
As artificial intelligence reshapes industries, its impact on underwriting and risk assessment in professional and executive liability insurance is becoming impossible to ignore. A study by Capgemini found that 62% of executives believe AI is improving underwriting quality and reducing fraud. But despite these benefits, only 43% of underwriters trust AI-generated decisions.
âWeâre definitely seeing a lot of discussion around AI and its use,â said Nirali Shah, partner and head of D&O, US at McGill and Partners. âThe technology is evolving quickly - both in adoption and functionality - allowing it to take on more complex tasks than ever before.â
Yet, for insurers evaluating professional and executive liability risks, AI presents both opportunities and challenges â both to improve work processes, and as a new risk to help clients with.
The rise of âAI-washingâ in corporate disclosures As companies incorporate AI into their operations, investor disclosures are coming under increasing scrutiny. A growing concern is the rise of âAI-washingâ - a corporate trend where companies exaggerate or misrepresent their use of artificial intelligence.
Research
Navigating the Auto Theft Surge: A Guide for Independent Agents
Vehicle theft is surging across the U.S., with the average rate of motor vehicle theft rates increasing by 105% between 2019 and 2023, according to The Council on Criminal Justice.
This sharp increase in car thefts has led to a rise in insurance claims and growing concerns for both policyholders and insurers.
As thefts become more frequent and sophisticated, independent agents play a crucial role in helping clients understand their risks and ensuring they have adequate coverage. Here are four ways agents can provide valuable guidance and build stronger client relationships:
Understand auto theft trends.
Auto theft claims issued through independent agents in the Northeast U.S. were up 15% year over year in 2023, according to data from Plymouth Rock Assurance. This trend is evident across multiple states, including New Jersey, New York, Massachusetts and Pennsylvania.
For agents, understanding which cars are most at risk is critical in advising clients on coverage and risk mitigation strategies. Plymouth Rock data reveals that the most frequently targeted vehicles include Hondas, Toyotas and Hyundais. While luxury cars are often assumed to be the primary targets, high-demand models with easily resold parts also attract thieves.
In particular, Hyundai and Kia vehicles have faced security vulnerabilities, leading to a wave of thefts inspired by viral social media videos. In response to multiple lawsuits, the automakers agreed to a $200 million settlement in 2023.
CANADA: New data shows staggering rise in fraud across the country: Aviva Canada
March is Fraud Prevention Month
- Aviva Canada data reveals a 76% rise in claim fraud investigations in 2024
- Auto-related incidents accounted for 67% of all claim fraud investigations during the past year
- Bad actors are capitalizing on Artificial Intelligence (AI) and technology for their malicious activities and Canadians are urged to keep vigilant
From auto theft to AI-generated documents and beyond, fraud continues to be one of the more pressing issues facing Canadian consumers and businesses in 2025.
As Fraud Prevention Month kicks off, new data from Aviva Canada has revealed a 46% increase in claim fraud detection â and a staggering 76% rise in fraud investigations â in 2024. Auto-related incidents alone accounted for two-thirds (67%) of all claim fraud investigations during the past year. Advancements in AI and its use by individuals to falsify information are expected to be on the rise in 2025.
âPeople are getting more sophisticated and innovative in their approaches when engaging in potentially fraudulent activity, making it increasingly difficult for the average Canadian to spot,â says Jamie Lee, Head of Financial Crime and Fraud, Aviva Canada.
âInsurance fraud costs Canadians $1 billion per year in added premiums. Itâs vital for Canadians to stay educated on the rising trends to better protect themselves.â
OEMs & Auto Insurance
Despite Higher Insurance Costs, Risks, EVs Are Set to Dominate Roads in 2025
More car buyers are leaning toward purchasing an electric vehicle over a gas powered one, with 64 percent of consumers expected to choose an EV for their next vehicle, according to a report published by IT service provider TATA Consultancy Services (TCS) in January.
More than 1,300 respondents, including charging infrastructure providers, fleet adopters and consumers across several countries participated in the survey.
Coupled with a recent study suggesting EV batteries could last an additional 40 percent longer than originally thought, EVs may overtake gas powered vehicles on roads across the globe. The TCS Future-Ready eMobility Study 2025 found that while 60 percent of consumers said charging infrastructure was a major challenge, 56 percent were ready to pay up to $40,000 for an EV.
In addition, 72 percent of U.S. consumers suggested they were likely or very likely to purchase an EV as their next vehicle.
Sustainability and lower operational costs were key factors driving EV adoption.