The Zebra Newsroom

Insurance M&As and partnerships: November 2021

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Allstate sells portfolio to Wintrust Financial 

Allstate announced that it would sell $570M of its agent loans portfolio, consisting of 1,800 loans, to Wintrust Financial. The financial company will also become the carrier’s national preferred lender, and a team of Allstate agency lending specialists will join the Wintrust team. 

Amica partners with Hi Marley 

Amica Insurance partnered with AI-enabled software provider Hi Marley to offer policyholders advanced communication options like texting capabilities. Hi Marley’s Insurance Cloud also connects Amica’s policyholders with representatives in a full insurance ecosystem. Hi Marley recently reported that more than one million policyholders have used their communication platform to text their providers about claims.  

Arity partners with 

Allstate’s mobility data and analytics company Arity made its driving risk scores exclusively available on Allstate acquired back in 2018, and this partnership with Arity will allow insurance marketers to target shoppers based on their driving risk scores. Arity collects data from smartphones, but customers have the freedom to opt-in or opt-out of data sharing. 

Erie plans to expand water and flood coverage 

Erie Insurance plans to expand its personal lines product offering with extended water and flood coverage in early 2022, in response to soon after FEMA revamping its National Flood Insurance Program last month. Further details have yet to be revealed. 

Experian acquires Gabi 

Credit rating company Experian announced the acquisition of Gabi for $320 million to expand its presence in the marketplace. This purchase will allow Experian to address insurance coverage for more than 45 million members and will take over Gabi’s partnerships with more than 40 regional and national home and auto insurance carriers throughout the country. 

Heritage Insurance partners with Slide 

Heritage entered a strategic partnership with startup insurtech Slide, to enhance its technological capabilities to improve underwriting and rating decisions. With this partnership, Heritage will also receive a 6% equity stake in Slide, and be able to participate in the insurtech sector to develop similar capabilities internally.  

Hylant launches pay-as-you-go insurance program 

Insurance brokerage company Hylant partnered with Obsidian Insurance Company to launch RoadPilot, a pay-as-you-go program designed for the food delivery industry. Clients can install the app-based program on their phones and have access to a dashboard that is available 24/7. Data can be used to reward and incentivize employees who drive safely, and managers can monitor in-progress driving. 

Lemonade launches Lemonade Car, acquires Metromile 

Lemonade launched Lemonade Car, making it the company’s first car insurance product designed to offer auto insurance for low-mileage, EV and hybrid car drivers. Customers will automatically receive discounts when bundling with other Lemonade products including home, renters, pet and life insurance. Lemonade Car is currently only available in Illinois. 

Just after launching Lemonade Car, the carrier also announced that it would buy telematics-focused startup Metromile for a value of approximately $200 million net of cash. Under this deal, Metromile shareholders will receive Lemonade common shares at a ratio of 19:1. The purchase is expected to close in Q2 2022; Metromile went public via SPAC earlier this year

Liberty Mutual launches Comparion Insurance Agency 

Liberty Mutual launched a new entity that houses 2,200 exclusive agents called Comparion Insurance Agency and will provide personal insurance and small business insurance customers with expert advice and tailored auto, home and small commercial insurance options. 

Nationwide partners with Kinetic 

Kinetic, a company that provides wearable technology, partnered with Nationwide to launch its new subsidiary Kinetic Insurance and develop a workers’ compensation product. Policyholders can wear a tech device that is designed to reduce injuries and losses while simultaneously maximizing a policyholder’s safety program and culture. The device is included at no extra cost with the purchase of a policy. 

Rivian files for IPO 

Electric-truckmaker Rivian Automotive Inc announced that it would be filing for IPO with a valuation of more than $70 billion, potentially making it the seventh-biggest U.S. IPO on record. The company is backed by Inc, who owns a 20% stake and has placed an order for 100,000 of its delivery vans. 

TypTap files for IPO 

Florida’s homeowners insurance company TypTap announced that it plans to raise $100 million for an IPO. The carrier uses AI to analyze risk and currently operates in seven states. 

UPS partners with Waymo on autonomous big rigs 

UPS has chosen Google sibling and autonomous vehicle unit Waymo as its second partner to test its driverless system on large delivery trucks. UPS first partnered with TuSimple to test autonomous technology on 18-wheelers back in 2019, and plans to eventually start testing Waymo’s technology in Texas to see how it would fit into the business model.

USAA launches first digital insurance product, partners with CCC 

USAA Life Insurance Company introduced Essential Term Life Insurance (ETLI), a new digital-only acquisition life insurance product that doesn't require a medical exam. ETLI is available to customers age 21-35; those eligible will receive an instant $100,000 policy approval and have coverage until the insured’s 39th birthday. The product is currently only available in Texas, with an expansion plan to nearly all states in early 2022. 

USAA also announced its partnership with CCC, a SaaS platform for P&C insurers to develop the Recovery Assistant app. The app accelerates third-party claims resolutions by creating a mobile channel to speed up communication between policyholders and the CCC Estimate - STP, a program that generates estimates for repairable claims and includes actionable estimates. 

Verisk acquires Data Driven Safety 

Verisk Analytics acquired North Carolina-based company Data Driven Safety to expand its auto insurance underwriting data business. Data Driven Safety has specialized in aggregating data on drivers across North Carolina on a daily basis to help insurers reduce costs and manage risks. With this acquisition, Verisk aims to provide insurers a more complete and cost-effective view of auto risk while enabling them to tailor the purchase experience for customers.

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