Insurtech growth and loss ratios
Many insurtech start-ups have grown quickly by offering simpler digital experiences, but rapid growth does not always mean profitable underwriting. Loss ratios, the share of premiums paid out in claims, have been a weak point for some full-stack insurtechs.
High loss ratios can come from aggressive pricing to win customers, limited loss history or adverse selection. Reinsurers supporting these companies watch underwriting results closely.
The most durable insurtechs combine good technology with disciplined underwriting and sound reinsurance protection.