Publications
Publications
- March 2024 (Revised January 2025)
- HBS Case Collection
Hippo: Weathering the Storm of the Home Insurance Crisis
By: Lauren Cohen, Grace Headinger and Sophia Pan
Abstract
Rick McCathron, CEO of Hippo, considered how the firm’s underwriting model could account for the effects of climate change. Along with providing smart home packages, targeting risk-friendly customers, and using data-driven pricing, the Insurtech used technologically empowered services to create its competitive edge. Given the rise of high-intensity weather events, however, the firm was grappling with major loss ratios and rate hikes. Could Hippo survive a new era of unprecedented weather catastrophes? What should Hippo’s optimal strategy be, in terms of achieving underwriting profit?
Keywords
Fintech; Underwriters; Big Data; Insurance Companies; Business Model Design; Weather Insurance; Business Model; Forecasting and Prediction; Climate Change; Environmental Sustainability; Green Technology; Technological Innovation; Natural Environment; Natural Disasters; Weather; Business Strategy; Competitive Advantage; Business Earnings; Insurance; Social Issues; Insurance Industry; United States; California
Citation
Cohen, Lauren, Grace Headinger, and Sophia Pan. "Hippo: Weathering the Storm of the Home Insurance Crisis." Harvard Business School Case 224-080, March 2024. (Revised January 2025.)