Calling All Insurance Leaders: A Goldmine Ahead

Calling All Insurance Leaders: A Goldmine Ahead 

Pet insurance. $45 billion by 2033 🚀

Rising vet bills are making this niche a goldmine for insurers and M&A players alike 💰

Oh, and ACA premiums? Up again, because of course they are.

If you’re in the game, these trends are your playground 📈

And don’t sleep on blockchain and the metaverse—health insurers are already using blockchain to streamline claims, and soon, policies for digital assets in the metaverse will be as normal as your standard homeowner’s policy 💯
 

In this issue:

• The Growth Potential of Pet Insurance: A Market Ready to Take Off 

• 2025 ACA Premiums Increase Due to Inflation and Specialty Drug Costs

• Blockchain’s Billion-Dollar Future: How Insurers Can Cash In

• Moody’s Strengthens Casualty Modeling with Praedicat Buy

• Upcoming Events

• The Panic of 1873: The First Great Depression

📚 Data Dive

The pet insurance market is sitting on massive untapped value.

With over 178 million cats and dogs in the U.S. and only 4.7% of them insured, the growth potential is staggering. Veterinary care costs are climbing, while pet ownership continues to rise.

For M&A players, the opportunity to consolidate and expand in this under-penetrated market is a game changer, especially with $165.5 billion of market value yet to be unlocked. 

Want to learn more?

📈 Trend of the week

2025 ACA Health Insurance Premiums Set to Rise Amid Inflation and Specialty Drug Costs 

Health insurers in the ACA Marketplace are expecting a 7% median premium hike for 2025, driven by inflation, increased use of specialty drugs like GLP-1s, and higher hospital costs due to consolidation and staff shortages.

While Medicaid unwinding and COVID-19 had minimal impact, premium increases generally range from 2% to 10%. Final rates will be confirmed later in 2024.  

💻 Insurtech Insight

Blockchain’s Billion-Dollar Future: How Insurers Can Cash In

Blockchain in insurance is growing faster than a Labrador puppy—$425M in 2022 to a jaw-dropping $37B by 2030. Health insurers are already cashing in, focusing on streamlining payment systems and slashing costs. Meanwhile, property and casualty players are tentatively dipping their toes in, exploring ways to boost efficiency and reduce claims fraud.

But here's where it gets interesting: blockchain isn’t just about cutting costs. We’re talking next-level use cases like insuring digital assets (NFTs anyone?) and using smart contracts to activate policies on demand. And with the metaverse looming, insurers might soon be underwriting risks that exist in virtual worlds (digital twin, anyone?).

Bottom line? Whether they like it or not, insurance execs better start paying attention, or they might miss the boat on the next big revenue stream.

🤝 Deal of the Week

Moody’s Expands Casualty & Liability Modeling with Praedicat Acquisition

Moody’s has acquired Praedicat, bolstering its risk assessment capabilities with advanced casualty and liability analytics. Praedicat’s models enhance insights into risks like product and environmental liabilities, strengthening Moody’s insurance solutions alongside its 2021 RMS acquisition. While the deal’s terms are undisclosed, both Moody’s CEO Rob Fauber and Praedicat’s CEO Bob Reville see this as a key move in addressing the rising demand for data-driven casualty risk management. 

Pet Insurance: The $165 Billion Investment Opportunity  🐾 

Delve into the the pet insurance market, a $165 billion industry primed for private equity intervention. This session will explore the intricate market dynamics, from the surge in pet ownership to the implications of rising veterinary costs, offering a detailed blueprint for private equity firms to effectively penetrate and dominate this underexploited sector. 

💬 Discussion Topics:

• Market Dynamics: A thorough analysis of the economic forces driving growth in pet insurance, with a focus on demographic shifts and cost inflation in veterinary care. 

• Investment Strategies: Advanced approaches for private equity to establish a foothold, leveraging sector-specific insights and identifying key acquisition targets.

🎙️ Expert Panel:

• CEOs, PE sponsors, public market corp dev, analysts.

📅 Q4 2024 – Stay tuned for details!

⌚ This Day in History

The Panic of 1873: The First Great Depression 📉 

The Panic of 1873 triggered the first Great Depression, sparked by a stock market crash and shaky reliance on gold and silver-backed currency. Lincoln’s "Greenbacks" spurred rapid railroad expansion, but when Jay Cooke & Co. couldn’t secure more funding, the bubble popped. Bank failures followed, leading to mass withdrawals and a halt at the NYSE on September 20th. 

📰 Interesting Stuff

🐣 Tweet of the week

"Don't be afraid to give up the good to go for the great."

John D. Rockefeller