Profitable Underwriting Through Technology Innovation

Today’s digital age opened the door for the nascent Insurance Technology industry to reshape the insurance landscape and allow carriers to leverage technology to provide expedited underwriting. As seasoned industry veterans, HCI Group Inc. recognized an opportunity to enter the sector by blending the power of its proprietary technology with its proven insurance practices. TypTap launched in 2016 as an Insurance Technology company tailormade for providing homeowners and flood insurance through the independent agent channel while providing quotes in seconds and policies in minutes with the goal of modernizing the personal insurance industry.

While this presented a new frontier primed for growth and advancement, TypTap retained its fundamental principle to focus on underwriting profitability – sound approaches to predict future costs of goods sold. The convenience of its innovative technology required pairing with diligent practices to properly manage risk.

Supported by a dynamic data repository, its technology-driven model curates precise risk evaluation at the individual property level to determine profitable underwriting decisions. Simply put, its technology platform transforms data by identifying prudent and profitable opportunities – a critical component of capital management. TypTap’s refined risk evaluation and proprietary underwriting are designed to deliver better results. In fact, this differentiated strategy yielded TypTap’s best in class gross loss ratio, lowering it by an estimated 25 points compared to the industry’s 75 percent average in 2020.

As digital automation advances, TypTap enables underwriting to be a continual process that reflects the shifting market and customer dynamics. Its tailored integration of technology and core insurance functions allows unprecedented accuracy in underwriting evaluations and policy pricing determined by utilizing robust data sets from various sources. For example, all risk and underwriting algorithms are customized according to the individual risk location, improving underwriting, and accelerating scalability.

In recent years, promising market conditions presented TypTap with an incredible expansion environment. In 2021, TypTap realized its growth objectives by accelerating national expansion efforts, taking a curated approach to each new state. With this growth, TypTap is still maintaining its agent-first model for quality, well-rounded coverage, with the needs of our policyholders being fully met. While growth remains a core pillar of TypTap’s long-term strategy, the company recognizes the value of balancing its innovation with steady and thoughtful expansion. TypTap identifies this sustainable, forward-focused approach as its true path to profitability, anchored by proprietary technology, and a commitment to delivering premium value at the individual risk level.