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.