๐ง๐ต๐ฒ ๐๐ป๐๐๐ฟ๐๐ฒ๐ฐ๐ต ๐๐น๐๐๐ต๐ฒ๐ฒ๐น ๐๐ ๐ง๐๐ฟ๐ป๐ถ๐ป๐ด ๐๐ด๐ฎ๐ถ๐ป
After a bruising couple of years, the signal in the noise is getting clear: capital is returning, more selectively, and operators are prioritizing underwriting discipline over blitz-scale. Thatโs healthy.
In H1โ25, insurtech investment reached ~$2.6B across 244 deals, putting the year on track to modestly surpass 2024.
[๐ด๐ฆ๐ฆ ๐ญ๐ช๐ฏ๐ฌ #1]
At the same time, funding mix is shifting and pacing remains measured (Gallagher Re shows Q2โ25 down QoQ to ~$1.09B with P&C at a multi-year low), which underscores the new bar: profitable growth with credible loss performance.
[๐ด๐ฆ๐ฆ ๐ญ๐ช๐ฏ๐ฌ #2]
Whatโs most encouraging is that several public insurtechs are now reporting quarterly results that reflect this mindset:
Lemonade (Q2โ25): In-force premium hit $1.08B (+29% YoY) and revenue grew +35%. Gross loss ratio was 67% in the quarter, with TTM GLR at 70%, now finally inside their target range.
In laymanโs terms, this means growth, while improving loss costs. ๐ข๐ฟ ๐ถ๐ป ๐บ๐ ๐๐ผ๐ฟ๐ฑ๐, ๐๐ต๐ฒ ๐ถ๐ป๐ฑ๐๐๐๐ฟ๐ ๐ถ๐ ๐น๐ฒ๐ฎ๐ฟ๐ป๐ถ๐ป๐ด ๐๐ต๐ฎ๐ ๐ถ๐ ๐ฐ๐ฎ๐ปโ๐ ๐ฎ๐ฐ๐ฐ๐ฒ๐ฝ๐ ๐ด๐ฟ๐ผ๐๐๐ต ๐ฎ๐ ๐ฎ๐น๐น ๐๐ฒ๐ฟ๐บ๐. ๐๐ผ๐๐ ๐ฟ๐ฎ๐๐ถ๐ผ๐ ๐บ๐ฎ๐๐๐ฒ๐ฟ.
Root (Q2โ25): Posted a 95.2 combined ratio (-7.5 pts YoY) and highlighted a ~60% gross accident-period loss ratio, alongside +21% YoY growth in GEP (Gross Earned Premiums).
๐ง๐ต๐ถ๐ ๐ถ๐ ๐๐ต๐ฎ๐ ๐ ๐ฐ๐ฎ๐น๐น ๐ต๐ฒ๐ฎ๐น๐๐ต๐ ๐ด๐ฟ๐ผ๐๐๐ต.
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Hippo (Q2โ25): Consolidated net loss ratio 47%, a jaw dropping 46-point YoY improvement, with revenue up 31% to $117M.
Oscar Health (Q2โ25): A different line of business, but instructive: Loss Ratio 91.1% amid tougher individual-market morbidity and risk-adjustment dynamics. Full-year LR was higher.
Why this matters:
โข The market is rewarding teams that treat โgrowthโ as an output of sound underwriting.
โข Investors are still writing checks, but theyโre asking for loss-run credibility, clear rate-adequacy narratives, and operating cadence (filings, reserving, claims cycle times) that compare with best-in-class carriers.
โข The public sources (below) show that when loss ratios are where they should be, cost of capital follows.
What great business looks like in 2025:
1. Report loss ratios (and components) every quarter, with what drives it.
2. Grow where unit economics are proven.
3. Use AI for real risk work (triage, fraud, FNOL to subrogation), not theater.
๐๐ป๐๐๐ฟ๐๐ฒ๐ฐ๐ต ๐ถ๐๐ปโ๐ โ๐ฏ๐ฎ๐ฐ๐ธโ ๐ฏ๐ฒ๐ฐ๐ฎ๐๐๐ฒ ๐๐ฎ๐น๐๐ฎ๐๐ถ๐ผ๐ป๐ ๐๐ฎ๐ ๐๐ผ. ๐๐โ๐ ๐ฏ๐ฎ๐ฐ๐ธ ๐ฏ๐ฒ๐ฐ๐ฎ๐๐๐ฒ ๐๐ป๐ฑ๐ฒ๐ฟ๐๐ฟ๐ถ๐๐ถ๐ป๐ด ๐ถ๐. ๐๐ฒ๐ฒ๐ฝ ๐๐ต๐ฒ ๐ฟ๐ฒ๐ฝ๐ผ๐ฟ๐๐ ๐ต๐ผ๐ป๐ฒ๐๐, ๐ฝ๐๐ฏ๐น๐ถ๐๐ต ๐๐ผ๐๐ฟ ๐น๐ผ๐๐ ๐ฟ๐๐ป๐, ๐ฎ๐ป๐ฑ ๐น๐ฒ๐ ๐๐ต๐ฒ ๐ฐ๐ผ๐บ๐ฝ๐ผ๐๐ป๐ฑ๐ถ๐ป๐ด ๐ฑ๐ผ ๐๐ต๐ฒ ๐๐ฎ๐น๐ธ๐ถ๐ป๐ด.
Sources:
1. https://lnkd.in/dZw_zfys
2. https://lnkd.in/d4h9VV7z
