InsurTech SPAC boom and bust (2020–2022)
A wave of insurance technology startups went public, many via special purpose acquisition companies, including Root, Hippo, Metromile, and Lemonade. Investors poured billions into the promise that software would remake insurance.
Share prices collapsed within a year or two as growth stalled and losses mounted.
Several were acquired at fractions of their peak valuations, including Metromile by Lemonade in 2022.
Health In Tech's guidance cut and reliance on future growth follow the pattern of small public insurtechs that struggled to scale after promising big market wins.
