With the latter half of 2020 resulting in several successful M&As, including Allstate’s acquisition of National General Holdings Corporation, the insurance industry is expecting to see a lot more M&A activity as the new year progresses. Here’s a round-up of this month’s latest insurance industry M&As and partnerships.
Hawksoft and InsuredMine
Hawksoft, an Oregon-based insurtech company, launched an integration with InsuredMine, a Texas-based insurtech that provides sales, CRM, marketing automation, analytics and a client mobile app in one platform. Hawksoft aims that taking an API approach could offer smarter technology to clients and policyholders by using client and policy data for segmentation and automation triggers to drip communications via InsuredMine modules. With this partnership, InsuredMine has the capability to embed Hawksoft data into their workflows to accelerate new business sales.
The Hartford and Tractable
The Hartford announced a partnership with Tractable, an AI solution that uses computer vision to assess photos from car accidents and understand vehicle damage like a human appraiser. This means the carrier has the capability to analyze auto damage within its own auto insurance claims operations in the U.S. Tractable is also able to return appraisals to the user as soon as photos of the auto accident are submitted, ultimately streamline and quickening the claims process for both insurers and drivers.
Smartcar and True Mileage
Smartcar and UBI analytics provider True Mileage announced their partnership to launch a simple solution for auto insurers to get more accurate discounts. Smartcar’s API allows insurers to verify vehicle mileage and other additional information without hardware, and True Mileage can convert that data into accurate discounts.
In an attempt to streamline auto subrogation claims, State Farm and USAA are partnering up by using blockchain technology. This new platform is the first of its kind between the personal lines companies, and will allow carriers to simplify processing subrogation claims. Blockchain maintains a complete history of all participants’ transactions and shares it among a distributed network of computers, making claims processes simpler by automatically compiling all subrogation payment amounts, netting the balance and facilitating a single payment on a regular basis between insurers.
Nationwide, Chubb, CSAA, Liberty Mutual and other carriers also formed a blockchain consortium called Riskstream Collaborative, with a goal to engage member-to-member testing of a First Notice of Loss data sharing application. Riskstream aims to launch its first application aimed to streamline the flow and process of FNOL and quicken the claims process after a personal auto accident, in the second half of 2021.
ISC and California Contractors Insurance Service
Integrated Specialty Coverages, a Program Administrator that builds end-to-end insurance products that uses AI technology and analytics purchased California Contractors Insurance Services(CCIC), a construction bond and insurance agency. CCISC offers rates by underwriting alongside several insurance companies, coupled with its advanced quoting and processing systems that work seamlessly with the Contractor State License Board database. ISC aims to harness underwriting expertise with this acquisition to deliver faster and cost-effective insurance programs.
American Family and Bold Penguin
American Family Insurance’s holding company is in the process of acquiring the insurance distribution insurtech Bold Penguin with the goal to grow the carrier’s commercial commercial segment and transform into a multi-line insurer. Bold Penguin digital exchange is used by insurance agents, brokers and other distributors to match, quote and bind policies for small businesses. Bold Penguin will become a subsidiary of American Family but maintain its name and business model.
In 2020, Bold Penguin acquired RiskGenius, a company that offers software that uses AI to evaluate a variety of emerging risks across an entire portfolio of insurance policies. Bold Penguin also bought xagent, an independent, single-entry multi-quote platform for standard and surplus lines business insurance market.
Safeco, Heritage and First American Financial
Liberty Mutual’s Safeco unit and Heritage Insurance have acquired the P&C book of First American Financial, which focuses on homeowners and renters coverage, with a nearly 60% concentration in the state of California. This partnership allows Florida-based Heritage to expand its reach outside of its home state. Safeco has been steadily expanding its reach in the homeowner market; the carrier partnered with Tower Hill Insurance in Florida for home and auto coverage bundling capabilities. Both Safeco and Heritage also took over AIG’s upper-middle-market personal lines businesses in 2020.
Chubb and Revolut
Chubb has partnered with Revolut, a fintech company delivering digital banking services, offering Revolut users purchase protection, refund protection and ticket cancellation. Revolut chose to partner with Chubb because of the company’s multinational capabilities and global presence. This policy also offers coverage where a customer has confirmed diagnosis of COVID-19 and prevents the user from using event tickets through their Revolut account.
Stay tuned for next month’s insurance industry M&A round-up!