b'TECHNOLOGY|INSURTECHWhile decreasing public insurtech share pricesConclusioncould dampen certain insurtech valuations, theseThe ongoing COVID-19 pandemic has imposed lower valuations could also result in an uptick incompressed timelines on companies across M&A activity. As an example, in November 2021,industries to adopt technology and innovation Lemonade entered into an agreement to acquiresolutions to better serve consumer needs in a Metromile in an all-stock transaction wherebychanging world. As a result, digital transformation Metromile shareholders will receive Lemonadehas become a must-have for companies across all common shares at a ratio of 19:1, implying a fullyindustries, including (and perhaps especially) the diluted equity value of approximately $500 million.insurance industry which is still in the process of The acquisition, if successful, will enable Lemonadeimplementing consumer oriented technologies and to obtain a national foothold in car insurance, ininnovations that are widely used in other industries. addition to its existing presence in home, renters, pet and life insurance. Given large amount of capital on the sidelines looking for targets and strategic opportunities in Other traditional drivers for M&A were at work inthe insurance space, the decrease in valuations for 2021 and are expected to continue driving M&Asome insurtech companies could create extra volume in the insurtech space in the years to come.motivation for insurance players to increase scale, One such driver, for instance, is to add aexpand product scope and enhance insurance complementary product or scale. If Lemonadesofferings through M&A transactions and proposed acquisition of Metromile helps to increasecollaboration deals in the near term, especially in scale, Hartford Steam Boiler (HSB)s acquisition ofthe light of the urgency to adopt technology and Zeguro, which closed in October 2021, addedinnovation to stay relevant in the current consumer complementary products to better serve itsinsurance market.customers. HSB, a specialty insurer and subsidiary of Munich Re, provides cyber coverages andInsurtech Regulatory Developmentsservices through agents, brokers, and insurance companies that partner with HSB to add cyberOne of the key issues for the rate of adoption of insurance to their policies. Zeguro, on the otherinsurance technology and innovation is insurtech hand, provides a cyber risk management platformregulation. In general, the state insurance regulators to small- and medium-sized businesses with onlinehave tried to enable the implementation of insurance access to cybersecurity training, compliancetechnology while balancing consumer protection policies and web application monitoring, helpingconcerns such as ensuring that consumers these businesses identify cyber vulnerabilities andunderstand the insurance products that they are complying with various data security frameworks.buying, insurance products are accessible and fairly After the combination of HSB and Zeguro, thepriced without reference to criteria that could be combined company can provide both cyberregarded as discriminatory and individual consumer insurance and security to its customers throughdata is adequately protected and kept private.HSBs cyber coverage and Zeguros risk management platform.124|Global Insurance Industry Year in Review 2021'