“Exotic” loss ratios - a problem?

The three P&C venture-backed US InsurTech start-ups - Lemonade, Metromile, and Root - finished 2018 with pretty good results.  Quarterly growth was the slowest ever, but all three paid out in claims less than they collected in premium. However all three start-up carriers still have more work to do to achieve sustainable financials. A year ago, when I started with my friend Adrian a public conversation about InsurTech statutory results, the picture was ugly - loss ratios well over 100%, an aggressive focus on price, and promotional messages on company blogs that dismissed traditional measures of success in insurance.

Matteo Carbone

Matteo is founder and director of IoT Insurance Observatory, Global InsurTech Thought Leader and Investor.
He is internationally recognized as an insurance industry strategist with a specialization on innovation. Matteo is author and world-renowned authority on InsurTech - ranked among top international InsurTech Influencers.

Matteo has advised more than 100 different players in ten markets around the world and has wide experience which includes set up of industrial and commercial plans, growth strategy definition and support in the start-up of new initiatives, digital strategy development, insurance products innovation, channel strategy and commercial model definition, startups mentorship and advice M&A deals.