Industry-wide
-
Pressure on Root cools following stock price dips, but persistent short interest in InsurTechs suggests that prices haven’t bottomed out yet.
-
Infrastructure improvements aren’t enough to keep insurance losses from wiping out profits if the rate and intensity of storms continue to rise.
-
The Inside P&C Select Index outperformed the S&P 500 (5.7% to 2.9%) in August, despite Hurricane Ida making landfall.
-
A complex web of factors are creating uncertainty around the likely insured loss, but much early discussion centers on a $20bn-$25bn range.
-
The newcomers are finding it more difficult to disrupt the sector than they had expected.
-
Pressure on the InsurTechs – specifically Root and Lemonade – is intensifying.
-
Inflation drags on another month, frustrating the recovery and challenging the P&C industry.
-
InsurTech short interest dwarfs legacy insurers as they come under pressure to produce profits.
-
Changes in short interest were muted despite large stock moves, including big rises at HCI and Lemonade.
-
With benign cat losses in the second quarter, earnings will be dictated by how carriers react to the pace of the economic recovery.
-
The read-across from the extreme weather to losses is not simple and insurers may do better than would be assumed.
-
The Inside P&C Research team looks at what subsectors the new class of InsurTechs is targeting.
