Five Dispatches From InsurTech Survival Island provides an interesting deep-dive into the world of InsurTechs who are operating as fully licensed insurers. These InsurTechs have started filing detailed financial/statutory statements which provides additional information to analyse. The article references the statutory statements of Lemonade, Metromile and Root. We have summarised the key findings in this infographic.
To conclude, it is too early to judge the existing startup InsurTech carriers with their performance on loss-ratio and expense ratio in the first few years. Also it is too early for these companies to claim the financial success of their business models. It is yet to be known the extent to which these new companies will leverage technology to outperform incumbents on technical profitability, productivity, client proximity and persistency of the business book. However, InsurTech startup carriers, their investors and their reinsurers need to be prepared for a long and expensive startup journey if a direct digital strategy is chosen as the primary distribution channel.
Complete link to the article: Five Dispatches from InsurTech Survival Island