Nov 26, 2020

Metromile signals that it will become a public company

Metromile
IPO
Insurtech
Cohen & Company
William Girling
2 min
‘Pay-per-mile’ car insurance insurtech Metromile has announced its intention to launch an IPO and become a publicly-listed company
‘Pay-per-mile’ car insurance insurtech Metromile has announced its intention to launch an IPO and become a publicly-listed company...

‘Pay-per-mile’ car insurance insurtech Metromile has announced its intention to launch an IPO and become a publicly-listed company.

Following in the wake of highly successful offerings from its unicorn contemporaries, Lemonade and Root, Metromile is hoping to leverage its cutting-edge, data science-based technology to disrupt the US motor insurance market, worth an estimated US$250bn.

Able to save customers money by charging a low monthly premium and adding a small amount on top for every mile driven, the company’s innovative system has already been integrated by Ford into select new models.

The estimated pro forma enterprise value upon the IPO’s closure currently stands at $956m.

Addressing the industry’s problems

The route to becoming a publicly-traded company involved partnering with asset management firm Cohen & Company and INSU Acquisition Corp.

Dan Preston, CEO of Metromile, is confident that the collaboration will accelerate growth and propel his company to the upper-most echelon of car insurance:

“We founded Metromile to address the vast inequities in auto insurance, and we are proving that our model of real-time, digital auto insurance is both resilient and sustainable.

“We are excited to bring our vision of transforming the auto insurance industry to the public markets by partnering with Daniel Cohen and the team at INSU II [...] Today’s announcement launches Metromile’s new chapter in delivering the fairest, most individualised auto insurance. 

“As a public company, we expect to use our strengthened balance sheet to accelerate our growth, bring Metromile nationwide, and scale rapidly toward sustained profitability. The era of fixed price auto insurance is coming to an end.”

Daniel Cohen himself described the US’ current auto insurance market as “inefficient and ripe for disruption”. Metromile’s advantage, he claims, is its advanced tech platform, of which its legacy competitors do not have an equivalent.

“Led by visionary technologists and complemented by the best veterans from top insurance carriers, Metromile has built a digital auto insurer with compelling and durable unit economics. The team has created a distinct offering that vastly differentiates Metromile in the marketplace,” Cohen concluded.  

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Jul 31, 2021

Global investment in insurtech reaches all-time high

Insurtech
investment
DigitalTransformation
funding
2 min
Global investment in the InsurTech sector reached a new record during this year’s second quarter, according to the broker Willis Towers Watson

Global investment in the InsurTech sector reached an emphatic record during H1, 2021, as half-year funding of US$7.4 billion exceeded full-year investment in 2020, and in every other year, according to the new Quarterly InsurTech Briefing from Willis Towers Watson.

It was found that the latest quarter saw 162 deals yield more than $4,824 million in investment, a 210% increase over Q2, 2020. The enormous quarterly total, itself more than any annual total before 2019, was driven largely by 15 mega-rounds of $100 million or more. Collectively, these deals reached $3.3 billion, or two-thirds of total funding during the quarter. The money was raised predominantly by later-stage players seeking expansion.

 

A need for the insurance community to reflect digital changes

 

Series B and C fundraisings drove a large number of deals in the second quarter, but the number of early-stage deals also increased. They were up by more than 9% from the previous quarter, and 200% from pandemic-stricken Q2, 2020. As a percentage of overall deals, early-stage activity held roughly steady, at 57%.

InsurTechs focused on distribution accounted for 55% of start-up deals, and for 10 of the 15 mega-rounds. Most of the distribution InsurTechs target reduced dependence on agent channels. Of all Q2 deals, 73% were for P&C-related InsurTechs, while 43 companies raised funds for L&H technology. Funds were raised by companies from 35 countries, including new entrants Botswana, Mali, Romania, Saudi Arabia, and Turkey.

Dr. Andrew Johnston, global head of InsurTech at Willis Re, said: “As technology changes our lives, society will demand an insurance community that reflects and supports our changing, digitally empowered behaviours. Consumers and businesses increasingly expect insurance to be delivered when and how they want it, and risk carriers that fail to respond will fall away over time. To embrace technology is a minimum survival condition. Those that use it to redefine service in the insurance world will thrive. That means a positive future for InsurTechs that bring a truly differentiated business approach to our industry. Some of them will create untold long-term opportunities for themselves and the insurance sector.”

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