{"id":2532,"date":"2022-05-13T17:28:28","date_gmt":"2022-05-13T21:28:28","guid":{"rendered":"https:\/\/insurtechadvisors.com\/?p=2532"},"modified":"2022-05-13T18:56:32","modified_gmt":"2022-05-13T22:56:32","slug":"2532","status":"publish","type":"post","link":"https:\/\/insurtechadvisors.com\/old\/2022\/05\/13\/2532\/","title":{"rendered":"Butterflies and Insurtech Hippo’s 2022 Promising Spring"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]Happy Friday the 13th!<\/p>\n

Hippo<\/a> today released its first-quarter results, entitled “Promises of Spring.” Many of the results are promising, which we will discuss shortly.<\/p>\n

When I think of spring, I think of butterflies, and butterflies make me think about my dissertation. No, I’m not an entomologist, I was a political scientist. The butterflies I’m talking about come from Edward Lorenz’s groundbreaking paper “Deterministic Nonperiodic Flow<\/a>,” which proved that a tornado striking the US can be caused by a butterfly flapping its wings in China. In other words, weather patterns are not predictable in the long run because of the sensitivity to small changes. (If you want to know how I applied this principle to the analysis of American electoral behavior, please feel free to contact me.)<\/p>\n

Hippo’s results this quarter underscore the “butterfly effect.” The weather was more favorable, with applicable premiums up 5% from 4Q2021 to $634 million and gross loss ratio down 17% to 76% over the same period.<\/p>\n

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Table of Contents<\/p>\n