When insurers want in, and how a deal can still underperform
On timing, Light said insurance companies that do get involved as buyers (itself unusual, since most insurers are customers rather than acquirers of insurtech) tend to want visibility into a private equity firm’s modernization plan before, not after, the deal closes. “There are no secrets about it,” Light said. “If we acquire you, here’s how you’re going to look different in order to be more successful at the end of year one, year two, year three and so on.” A plan alone isn’t enough: “It’s one thing to say we’re going to use a lot more AI in underwriting. That’s wonderful. But then they have to execute.” Underperformance happens: “Could over-promising happen? Yes. Could less-than-projected quality outcomes happen? Yes,” Light said.