The Zebra Newsroom

Insurance industry M&A round-up: January 2021

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The Zebra Newsroom aims to bring several channels together, sift through insurance industry-related media outlets and equip you with the latest and greatest content that's digestible and all in one place. Check back frequently for breaking news, industry trends, mergers and acquisitions, and significant financial news in the insurance industry.

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. 

State Farm  and  USAA 

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!

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