Wave of layoffs in insurtech
The economic crisis and the decrease in profitability would be at the origin of several layoffs in the insurtech sector.
In the United States, at the end of July 2022, Metromile, a new acquisition of Lemonade, made 60 employees redundant, which represents 20% of the company's workforce specialized in motor insurance.
A few days earlier, New York-based Policygenius had also fired 25% of its staff, or nearly 170 employees.
Across the Atlantic, the wave of layoffs began in January 2022 with Root.
| Insurtech | Number of laid off employees | Layoff rate |
|---|---|---|
| Root | 330 | 75% |
| Next Insurance | 150 | 17% |
| Coterie Insurance | 30 | 20% |
| Thimble | 20 | 33% |
This trend is not specific to the United States. The wave of dismissals has recently reached the UK. Across the Channel, insurtech Zego has let go of more than 16% of its staff while Honcho ceased to exist five years after its creation.
Insurtech in India have also been impacted by the economic crisis. Nova Benefits, which specializes in health insurance, made 70 people redundant, meaning 33% of its workforce.
