Here’s a round-up of August 2021’s insurance industry-related M&As and partnerships.
AXA launches new digital claims solution
AXA launched STeP, a digital claims solution which gives more flexibility to auto insurance customers by allowing them to choose seamless multi-channel journeys when making a claim. Customers can notify and track a claim online, and find companies that will help with repair or replacement of their vehicles in one platform.
Brookfield Reinsurance acquires American National
Brookfield Asset Management Inc.’s reinsurance unit is buying American National Group Inc for $5.1 billion in an all-cash deal. American National shareholders will receive $190 per share in cash, representing a premium of about 10% to the insurer’s closing price, and Brookfield plans to keep the headquarters in Galveston, Texas.
Carvana and Root partner up
Carvana announced its exclusive partnership with Root Insurance to develop integrated auto insurance solutions for Carvana’s online car buying platform. As a part of this collaboration, Carvana will invest $126 million in Root, Inc.
Chubb acquires Streamlabs
Chubb acquired IOT enabled water monitoring, leak detection and water shut-off product company StreamLabs, advancing Chubb’s strategy to offer best-in-class “predict and prevent” risk engineering services.
Farmers debuts customizable policies
Farmers Insurance launched a range of insurance products that consumers can customize in North Carolina, allowing customers to access quotes and purchase auto, home, condo and renters products in a direct-to-consumer model. With this new model, consumers get to choose what coverage they want, including optional endorsements like rideshare coverage.
Gallagher buys Willis Re
After Aon canceled its takeover, Willis Towers Watson agreed to sell Willis Re to Arthur J. Gallagher & Co, for $3.25 billion and is expected to close the transaction by the end of Q1 2022. This deal will expand Gallagher’s global value proposition within reinsurance, enhance its analytics capabilities and increase its product breadth and offerings, strengthening its relationships with major insurance carriers.
Goosehead partners with Elephant, launches quote platform for consumers
Elephant Insurance and Goosehead Insurance announced a partnership that will provide Goosehead agents access to Elephant auto insurance and its discounts. Virginia-based Elephant Insurance is a customer-centric insurance carrier that offers coverage in Georgia, Illinois, Indiana, Maryland, Ohio, Tennessee, Texas and Virginia. Goosehead is an independent personal lines insurance agency that distributes its products and services throughout the country.
Goosehead also launched its direct-to-consumer insurance quoting service that leverages AI and deep integrated tech to provide insurance quotes to customers. The platform uses the name, address and date of birth to pull home and auto quotes from more than 140 insurance carriers.
Hagerty goes public, partners with State Farm
Classic car insurance specialist Hagerty is going public with Aldel Financial Inc. for $3.13 billion. As a part of this deal, Aldel will acquire all of the limited liability equity interests of Hagerty for $3 billion and will close in the fourth quarter of 2021. Hagerty insures more than 2 million vehicles globally, a unique membership model and partnerships with nine U.S. auto insurers.
Hagerty also announced a partnership with State Farm this month as well. Starting in 2022, State Farm will write State Farm Classic+ policies through State Farm Classic Insurance CO.
Hippo goes public, doubles down with Ally Financial
Homeowner insurtech Hippo went public through a blank-check company Reinvest Technology Partners. Hippo’s total written premiums grew from $142 million in 2018 to $405 million in 2020, and forecasts that it would reach $2.28 billion by 2025. The company plans to develop algorithms that speed up policy quotes and create new products.
Hippo also announced that it is doubling its underwriting capacity through new issuing carrier arrangements with Ally Financial. Through this agreement, Ally’s insurance menu will expand beyond auto coverage and will be available in 10 states. This also establishes Ally as Hippo’s biggest managing general agent unaffiliated program partner.
Metromile announces Verisk integration
Metromile is integrating Verisk’s LightSpeed Auto, a digital underwriting platform, to simplify the consumer buying experience. With this integration, Metromile will have all of a policy applicant’s underwriting data and analytics at the beginning of the quote process, which takes their personalized customer experience to the next level.
Next partners with Bluevine
Next Insurance partnered with online financing and banking services platform BlueVine to provide BlueVine customers with access to insurance policies. With this partnership, BlueVine customers can get a quote and purchase general liability, professional liability, workers comp, commercial auto and property, and tools and equipment insurance coverage from Next without leaving the BlueVine platform.
Openly partners with Policygenius
Openly, a home insurance carrier, will be providing homeowners insurance quotes on the Policygenius platform. Through Policygenius, Openly will be available in Illinois, Arizona, Pennsylvania, Kentucky, Ohio, Wisconsin, Indiana, Massachusetts and New Mexico. The carrier currently has existing integrations with EZLynx and just announced a partnership with Snapsheet, a cloud-native claims management software, as well.
Safeco expands to New Jersey
Safeco launched auto and umbrella coverage in New Jersey, with the rest of its menu to be added eventually. With this move, New Jersey independent agents will have access to the same partnership, programs and products that makes Safeco a carrier of choice. New Jersey is the 48th state in which Safeco offers coverage.
Toyota debuts collision assistance capabilities via mobile app
As an extension of the Safety Connect suite of features available to Toyota and Lexus owners, Toyota and CCC Intelligent Solutions developed a new program that allows customers to choose how they’d like to handle a claim and repair processes after an accident. The Collision Assistance app can be used to guide drivers to collect important accident documentation, connect them to a network of auto insurers for optional claim submission and provide search capabilities to help locate a collision repair facility.
Voom offers per-mile motorcycle coverage
Voom and Markel partnered up to launch a product that enables motorcyclists to customize their insurance all year round and pay for the time they ride instead of high predetermined rates. Since motorcycle riding is seasonal, this new form of motorcycle insurance will save riders from paying high insurance costs. In addition, instead of having policyholders be tracked with a physical device, motorcyclists will just submit an odometer photo every month to determine their insurance cost.