In recent years, the emergence of insurance technology (Insurtech) companies has revolutionized the insurance industry through the introduction of innovative technologies, such as artificial intelligence (AI), machine learning, the Internet of Things (IoT), big data, and blockchain, that provide better risk identification and mitigation measures, allowing companies to streamline processes and enhance customer experience. However, amid their rapid expansion and innovation, these Insurtech firms face legal challenges and uncertainties after going public through a Special Acquisition Company (SPAC) or an Initial Public Offering (IPO).
In this CRA Insights, the authors Yifan Yu and Ken Morotomi provide an overview of US-based Insurtech companies that went public on the New York Stock Exchange (NYSE) or NASDAQ between January 1, 2015, and January 1, 2024, through a SPAC or an IPO. They reveal a trend of poor stock performance in the aftermath compared to traditional insurance companies that went public in the same period and benchmark indices.
Read more about Insurtech companies’ stock performance and securities class action filings.