Munich Re partners with Mobileye. Metromile's new reinsurance. This week in insurance tech.
Here are three different stories this week that involve different insurers, startups and reinsurance providers, but all speak to the challenges the auto insurance industry is grappling with today and in the future.
The first comes from The Daily Star, a local Louisiana news service, which covers comments from Louisiana Dept. of Insurance Commissioner Jim Donelon and local AAA spokesman Don Redman on why auto insurance rates are increasing. Recall State Farm annual profit fell by $7B on car insurance claim costs in 2016.
The next comes from Metromile’s new reinsurance agreement led by Hudson Structured Capital Management, which is reportedly a $500M deal and seven-year placement. Metromile wrote $22.5M in direct written premium in H1’17, based on statutory filings.
In the announcement, Metromile positions itself as a “hedge” against the challenges detailed in the first article:
The last involves a different timeline of the future and comes from Bloomberg, which reports on Munich Re’s new partnership with Mobileye, in which Munich Re will start selling Mobileye’s driver-assistance tech as an aftermarket add-on to commercial fleets. Munich Re’s eventual goal will be to bundle the tech into a newly designed insurance product it is looking to launch.
Per Munich Re’s Mike Scrudato:
Surety startups add funding
Per an SEC filing caught by CB Insights, The Guarantors, a New York-based startup which offers an apartment lease rental bond product in partnership with Hanover Insurance Company, has raised $11.7M in new funding.
This comes a week after another renter-focused surety startup Rhino Labs announced it had raised $1.94M in seed funding to launch a security deposit bond product in partnership with Canopius Insurance.