20 Apr 2023
Insurers face a perplexing challenge when forecasting the future – navigating the impact of inflation.
As an insurer, fulfilling the promise of rebuilding lives after a crisis hinges on understanding the cost of repairs. While many keep a watchful eye on the Consumer Price Index (CPI) report, its status as a lagging indicator poses limitations. How can insurers stay ahead of the curve?
The April 12 report summarizing March seasonally adjusted change represented a magic number, an equilibrium: Fed Funds Rate (4.75 – 5.00) ≈ March CPI (5.0). In theory, that means the Fed will act differently moving forward and possibly pause rate hikes.
The latest forecasting data presents a split perspective, revealing an upward trend in healthcare costs while signaling a downturn in real estate. For healthcare costs, Mercer forecasted a 5.4% rise in healthcare benefits costs and AON projected a 6.5% increase in employer healthcare costs (Word & Brown).
In the context of real estate costs, Redfin predicts median home prices will fall 4% for 2023. Data from March showed home prices fell 1% in February, representing the first annual drop since 2012.
These divergent trends are impacting the world of InsurTech, and we’ve assembled a group to explore the implications on healthcare and real estate adjacency. If you’re interested in exploring this topic, we invite you to register for our next InsurTech SF event on May 16th.
Learn more and register: InsurTech Adjacencies
Reflections on InsurTech Spring + MGA Whitepaper
Three weeks behind us, we reflected on the 2023 InsurTech Spring Conference, which was a record year with over 950 registrations. Here are a few things we learned from the sessions:
> Measuring collaboration is a complex issue, as highlighted by the opinions of NFP, CRC, and NYSIF leaders during our Presidents Panel. Despite their insights, there is no universal answer. However, our upcoming book with Bryan Falchuk represents our best attempt to tackle this challenge.
> InsurTech’s global reach was evident in the top finalists from the UK, Mexico, Ireland, and Nigeria, with the ultimate winners hailing from Mexico (Journey Sports) and Ireland (Kayna).
> Despite the emergence of companies like Lemonade, MGAs remain the optimal choice for insurer-insurtech collaboration, as they continue to underwrite more profitable businesses than traditional underwriters. Learn more in our whitepaper with Novidea.
Read the MGA Whitepaper: MGA Whitepaper
Check out the Photos: Flickr Photo Library
Pre-order the Book – FOI Vol III. The Collaborators: future-of-insurance.com
Upcoming InsurTech Community Events and Programs
Investing in InsurTech Adjacencies (Bay Area – Palo Alto) – May 16 | 5:30pm – 8:30pm
Panels Include: Health & Wellness Investment Trends, Spotting PropTech opportunity in a declining market
More info and Join Registration
The Art of Distribution (NYC) – June 8 | 4:30pm – 8:00pm
Event Highlights: Art Exhibition, Zen & the Art of Insurance, How to Distribute to Underserved Markets
More Info and Join Registration
InsurTech Trails 2023 (Aspen) – June 20-21
Founder and Investor Event – 2 days of outdoor activities, Programming and Startup Pitches
More Info and Join Registration
InsurTech NY Sponsors
Thank you again to our sponsors of our InsurTech Spring Conference this past March in NYC.
If you are interested in sponsoring a future InsurTech event, send us a note at contact@insurtechny.com.
InsurTech East Coast Deals, Partner Events, and Open Roles
Discover a curated mix of March and April InsurTech financings, exits, partnerships, opportunities, and partner events on the East Coast.
InsurTech News and Deals
Fairmatic ($46M, Battery Ventures): P&C: Commercial fleet coverage using AI to provide realtime data to fleet owners to reduce risk and premium costs.
SageSure ($50M, Wintrust Financial Corp): P&C: MGU focused catastrophe coverage in underserved coastal markets with proprietary risk modeling and binding.
Zorro ($11.5M, Pitango): Health: End-to-end broker platform for employer-based health coverage using API modeling to provide custom coverage to individual employees.
Axle ($4M, Gradient Ventures): Data: Continuous-access insurance verification platform for consumer and commercial to verify and monitor contractor and employee coverages in real time.
Partner Events and Programs
insureNXT Congress and Expo (April 26 & 27)
InsurTech Hartford Symposium (May 2-3)
OnRamp Insurance Conference (June 21-22)
Reuters Future of Insurance USA (June 27-28)
InsurTech Leaders Summit (Sept 20-21)
DFS Exchange – NY Department of Financial Services newly-launched engagement platform to foster the growth of responsible innovation in financial services in New York.
See more information and register via our website: www.insurtechny.com/upcoming-insurtech-conferences
Jobs In Carrier/Broker Innovation and Venture Teams
Enterprise Ireland – Senior Market Advisor
Ethos Life – Director, Actuarial
Starr – Internal Management Consultant
Verisk – Actuarial Associate
See more information and apply via our blog: https://www.insurtechny.com/jobs
Looking to become an MGA?
We open applications for our MGA Lab, a program to help startups become MGAs, in about 2 months. If you want to find out if the program is a fit for you, please reach out to contact@insurtechny.com.