David Cather, Thesis Supervisor David Cather, Thesis Honors Advisor Lisa Lipowski Posey, Faculty Reader
Keywords:
Insurtech Venture Capital Insurance Regulation
Abstract:
Insurtech, defined by the NAIC as “the innovative use of technology in insurance,” has transformed the insurance industry and its approach to serving consumers. As a result of their success, a number of insurtech firms launched IPOs and began trading on public markets. Following the surge and subsequent plummet of insurtech share value from 2020 to late 2023, this thesis aims to identify the causes of this timeline. By analyzing a sample of public insurtech firms and their share price reactions following certain events, significance of different causal factors will be determined. Main topics include the application of artificial intelligence and machine learning, insurance and antidiscrimination regulation, and venture capital trends. As incumbent insurers and insurtech startups seek to maintain their value, expand their offerings, and raise capital, it is imperative that they learn from the mistakes of their peers and prepare for the challenges that lie ahead.