M&A Shifts 📊; Premium Hikes 📈 $500B EV Market

Happy Monday ,

This week we’re diving into the $500 billion insurance market driven by electric vehicles.

The future may be electric, but U.S. drivers are still paying nearly 44% more for EV insurance than for gas cars.

And speaking of tough conditions, property owners are bracing for skyrocketing costs in catastrophe-prone regions, as extreme weather events continue pushing commercial insurance premiums higher 📈.

Plus, is the insurtech unicorn 🦄 boom slowing down?

We’ll shed some light on it for you today.

Yours in service,

— Gaston Brizuela, Senior Insurance and PE Analyst

In this Issue:

• Insuring the Future: EVs Drive $500B Insurance Market

• Extreme Weather Events Driving Commercial Insurance Costs Higher 

• Is the Insurtech Unicorn Boom Slowing Down?

• Aquiline Capital's Relation Insurance Acquires Whitney Oaks

• HBO’s Satellite Gamble That Changed TV Forever

• E&S Boom: Trend or Permanent Shift?

📚 Data Dive

Insuring the Future: EVs Drive $500B Insurance Market

As electric vehicles (EVs) move from niche to mainstream, the insurance industry is gearing up for explosive growth. By the end of 2024, the global EV insurance market will hit a projected $508 billion. But for now, EV owners are paying more—U.S. drivers of EVs face insurance premiums averaging $2,917, nearly 44% higher than their gas-guzzling counterparts.

Higher repair costs and specialized parts drive this spike. Markets like Norway and Iceland are leading EV adoption, but regions like the U.S. and Luxembourg show untapped insurance potential.

The auto insurance game is changing, and EVs are in the driver’s seat.

Upgrade To Executive To Get More Faster

Access all our proprietary research and more, one week prior!

📈 Trend of the week

Extreme Weather Events Driving Commercial Insurance Costs Higher 🌪️

Extreme weather events like wildfires and storms are hammering U.S. commercial real estate insurance premiums, with Deloitte projecting they could nearly double by 2030. States with higher climate risks are seeing the worst of it.

The playbook for property owners? Bolster risk assessments, get a sharp broker, or even consider relocating to safer zones.

As catastrophe-driven risks continue to rise, so will costs, leaving investors little choice but to adapt.

💻 Insurtech Insight

Is the Insurtech Unicorn Boom Slowing Down?

The global rise of insurtech unicorns has been significant, climbing from 8 in early 2019 to 40 by the end of 2023.

However, after a peak in 2021 with rapid funding and valuations, the trend seems to have decelerated. The U.S. leads with 25 unicorns, while Europe follows with 8, Asia with 5, and Oceania and Latin America having 1 each. Investors may now question whether this explosive growth is beginning to taper off. 

Among the top 10 unicorns, Devoted Health leads at $12.9B, followed by Gusto at $10.0B and Coalition at $5.0B, highlighting a dominance by U.S. companies. 

Receive Honest News Today

Join over 4 million Americans who start their day with 1440 – your daily digest for unbiased, fact-centric news. From politics to sports, we cover it all by analyzing over 100 sources. Our concise, 5-minute read lands in your inbox each morning at no cost. Experience news without the noise; let 1440 help you make up your own mind. Sign up now and invite your friends and family to be part of the informed.

Sign up today!

🤝 Deal of the Week

Aquiline Capital's Relation Insurance Acquires Whitney Oaks

Aquiline Capital-backed Relation Insurance just acquired Whitney Oaks Insurance Services, strengthening its niche market presence. The deal adds further scale to Relation’s aggressive acquisition spree, with backing from PE giant Aquiline. This move not only highlights the ongoing consolidation trend in insurance brokerage but also demonstrates how private equity continues to see value in specialized markets. For corporate strategists, this is another case study in how well-executed acquisitions can drive growth and integration synergies. Whitney Oaks’ focus on client-specific solutions aligns perfectly with Relation’s strategy, making it a high-potential deal in the middle-market insurance space.

⌚ This Day in History

HBO’s Satellite Gamble That Changed TV Forever 🌍

When HBO broadcast the "Thrilla in Manila" via satellite in 1975, it sparked the birth of modern cable TV. Skeptics doubted the move, but it led to the rise of CNN, ESPN, and other cable heavyweights. Satellite delivery gave these networks nationwide reach and reshaped the entire industry. Forty-nine years later, HBO remains a pioneer, pushing the boundaries with streaming services, proving cable’s adaptability in a digital age. 

🎧 Podcast of the week

E&S Boom: Trend or Permanent Shift? Munich Re’s Greg Hohman Weighs In

Greg Hohman from Munich Re-Specialty Insurance joins The Voice of Insurance to explore the skyrocketing E&S lines market.
Is this growth just a cycle, or the new reality?
He breaks down the rise of MGAs, hybrid carriers, and AI’s growing influence in underwriting, offering a clear-eyed view of where the U.S. P&C market is heading.
If you’re wondering where insurance is headed, this episode is a must-listen.

📰 Interesting Stuff

🐣 Tweet of the week

“If you are not taking care of your customer, your competitor will.”

-Bob Hooey