Happy hump day, !

This week, we delve into the stable and scalable $29.7B Construction Insurance market that will continue to grow as government infrastructure and the use of advanced construction technologies keep increasing

In Europe, France is position as the main Insurtech promoter, snagging 6 out of the top 10 largest European Insurtech deals in 2024.

Commercial Auto Premiums have been consistefntly increasing in the U.S since 2000, marking a 1.2X climb with repair costs, claims from litigation and accident frequency acting as main drivers

— Insurance 150 Team

Table of Contents

• Data Dive

• Trend of the Week

• Market Movers

• Insurtech Corner

• Deal of the Week

• Macroeconomics

• Interesting Articles

• Tweet of the Week

Construction Insurance: The Next Big Build

The construction insurance market is on solid ground, projected to hit $45.3B by 2030 with a 7.5% CAGR. That’s not fintech-level disruption, but it’s stable, scalable, and less volatile—exactly what insurers love.

Despite inflation and high interest rates, pricing is holding steady thanks to increased capacity and competition. Meanwhile, insurers are seizing opportunities in high-risk areas, from mega-projects to cyber policies tied to tech-driven construction.

Top growth drivers? Government infrastructure spending, the rise of renewable energy projects, and advanced construction tech like BIM and modular builds. The bottom line: As global construction scales up, so does the need for risk management. Insurers who innovate now will build the strongest foundations for the future.

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Commercial Auto Premiums Climb 1.2x

It’s been a steady uphill drive for US commercial auto insurance premiums since 2000. According to the Bureau of Labor Statistics, premiums have grown from 103.1 in December 2000 to 123.6 in December 2024—a 1.2x increase.

What’s driving the climb? A cocktail of factors: increased repair costs due to advanced vehicle technology, rising claims from litigation, and a steady uptick in accident frequency in certain sectors like trucking. Combine this with inflationary pressures and insurers recalibrating to sustain profitability, and you’ve got a perfect recipe for higher premiums.

For brokers and carriers, it’s an opportunity to develop sector-specific solutions to offset these costs. For policyholders, brace for more granular underwriting and incentives to adopt safety tech. Buckle up; the road ahead isn’t getting cheaper.

Fewer InsurTech Bets, But France Wins Big

French InsurTech is having its main character moment. The country snagged six of the 10 largest European deals in 2024, overtaking the UK, which went from six last year to just one now.

This comes as European InsurTech funding shrinks 21% YoY, with deal volume plummeting 44%. But while the pie is shrinking, slices are getting bigger—the average deal size jumped to $28.9M from $20.6M.

Leading the charge is Akur8, which raised a cool $120M Series C to scale its AI-powered pricing platform. Investors are clearly doubling down on tech that boosts underwriting efficiency rather than betting on the next big disruptor.

With Germany holding steady and newcomers like Cyprus entering the mix, InsurTech’s power map is shifting. France is the new king—question is, how long can it hold the throne?

L&G’s $2.3B U.S. Exit Comes with a PRT Safety Net

Legal & General is selling—but not completely leaving—the U.S. The insurer is handing its U.S. life business to Meiji Yasuda in a $2.3 billion deal, yet keeping 80% of its U.S. PRT exposure through reinsurance. Meiji Yasuda, on the other hand, gets a clean entry into U.S. life insurance and a 20% stake in the U.S. PRT market, marking a major step in its international expansion.

The deal, set to close in late 2025, will also fuel a £1 billion capital return for L&G shareholders while strengthening cross-border collaboration in asset management and PRT growth. Meiji Yasuda is doubling down with plans to acquire 5% of L&G, reinforcing its confidence in the UK giant’s long-term strategy.

Trade Tensions and Economic Leverage

Trump’s America First trade memo signals a seismic shift in U.S. trade policy—without yet imposing a single tariff. While the document appears subdued on the surface, its undercurrents suggest a radical restructuring of U.S. trade practices that will ripple through the global economy.

Key highlights:

1. Tariffs reimagined: Beyond traditional duties, the memo proposes a “global supplemental tariff”—essentially a sweeping 10% levy on all imports. This could redefine the U.S.’s trade relationships, igniting retaliation from key partners like China and the EU.

2. Economic and national security overlap: For the first time, persistent trade deficits are explicitly tied to national security risks, reshaping the narrative around trade policy.

3. A new bureaucratic player: The proposed External Revenue Service (ERS), tasked with collecting tariffs and other trade revenues, signals a creative accounting move to offset fiscal spending—critical for Trump’s tax and deregulation agenda.

Despite its lofty ambitions, the memo lays bare challenges ahead: fragmented agency coordination, potential WTO conflicts, and tension between Trump’s high-tariff instincts and more moderate advisors.

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