Why are Israeli insurtech firms losing their value so sharply? People are wondering if it is because insurtech is in trouble in general. After all, why invest in an insurtech firm at a time when there is so much insecurity in the world because of the Coronavirus pandemic.
Insurtech firms may not be a safe bet if insurance companies start to have trouble paying off on all sorts of health policies, life insurance policies and policies that cover business losses?
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at office@jewishbusinessnews.com.
Thank you.
Hippo Holdings Inc., is an Israeli insurtech Firm in the field of home insurance. Its stock has plummeted from a high of more than $14 a share to only a little over $2 per today. But it has only been trading since last year. Lemonade is another Israeli insurtech firm to be in trouble, seeing an even greater drop in its stock’s value.
Founded in 2015 by COO Shai Wininger and CEO Daniel Schreiber, Lemonade is a licensed insurance carrier offering renters, homeowners, and pet health insurance in the United States, and contents and liability insurance in Germany and the Netherlands. It is powered by artificial intelligence and behavioral economics and driven by social good. A certified B-Corp, Lemonade donates unused premiums to nonprofits selected by its community as part of its annual Giveback program. It only recently expanded into the area of pet insurance. It is also expanding into life insurance.
Lemonade stock has plummeted from an all time high of almost $164 to just $35.22 as of Friday afternoon. The insurtech company’s market cap has plummeted from a high of almost $9 billion to just $2.2 billion today.
The slide continued in the two months since the company bought out insurtech firm Metromile, an American data science company focused on auto insurance. Lemonade paid $500 million for Metromile last November.
Hippo had already lost value last summer ahead of its SPAC merger. The company completed its previously announced business combination with Reinvent Technology Partners Z, a publicly traded special purpose acquisition company SPAC, for the purpose of holding an initial public offering. But in August it was revealed that the new company had to return $192 million in funding to investors who dropped out of the IPO.
–
Home may be where your heart is, but what about your head? There are many ways your #home can help contribute to improved mental wellbeing. Head on over to the Hippo blog to check out our guide to #HomeWellness Additions for Your Personality Type.#Homeownership #Homeowners
— Hippo (@hippo_insurance) January 13, 2022
At the time, this was seen as a symptom of problems in the SPAC market in general. But now it could be related to insurtech startups in general.
