Carrier Management 6/21/2021- How to Value an InsurTech

Robert P. Hartwig, PhD, CPCU · June 21, 2021 ·

A Carrier Management article investigates the valuation of InsurTechs compared to more traditional insurance carriers. InsurTechs are often overvalued. This is demonstrated by companies like Root Insurance and Lemonade. Dr. Robert Hartwig is critical of InsurTech startups chances for success. He says, “Virtually all of the InsurTech insurer startups in existence today will fail. They operate in the ‘kill zone’ of the majors—whatever modest innovations they’ve developed can be quickly and less expensively replicated by the incumbent insurers.” However, Dr. Hartwig does see the value in InsurTech; Hartwig states, “the companies liberate incumbent carriers from having to spend as much capital on technology research and development, trying out and bearing the cost of innovations that insurers can acquire for their own use.” Read the entire article here.

About Robert P. Hartwig, PhD, CPCU

Director, Risk and Uncertainty Management Center
Clinical Associate Professor
Robert Hartwig (Ph.D., University of Illinois, 1993) is clinical associate professor of finance and director of the Risk and Uncertainty Management Center. His research focuses on insurance markets and structures, risk management, pandemic risk, risk-bearing capital market instruments, the financing of technology risks and venture capital in insurance markets. He makes frequent presentations to insurance industry management, boards of directors, regulators and legislators. Prior to joining the Darla Moore School of Business, he was president and economist for the Insurance Information Institute in New York and in prior positions worked for Swiss Re, the National Council on Compensation Insurance and the U.S. Consumer Product Safety Commission. He has also served as an adjunct professor at Florida Atlantic University. His professional experience includes expert witness testimony and testimony before numerous congressional and state legislative committees. He holds the Chartered Property Casualty Underwriter (CPCU) credential and speaks frequently in the media on all issues related to insurance markets.