The Transition of UPC Policies in the Northeast

In 2020, the U.S. had a $110 billion total addressable insurance market. While it holds massive opportunity, it has proven to be a turbulent marketplace, intensifying the need for simplified insurance like never before. HCI Group Inc., TypTap’s parent company, recognized those conditions and developed a strategic plan to leverage its InsurTech operation to meet market demands and accelerate national expansion plans  

In December of 2020, HCI Group reached an agreement with United Insurance (UPC) for United Property & Casualty Insurance Company to transfer most of its Northeast homeowners policies to TypTap. Through the transition, TypTap acquired UPC’s seasoned books of business, an established agent network, and critical underlying data in Connecticut, New Jersey, Massachusetts, and Rhode Island to integrate with its existing portfolio. While the addition of business in the Northeast accelerated TypTap’s nationwide expansion plans, the team took a diligent approach to execute the transaction to ensure scalable growth and seamless transition for policyholders. Early results from the UPC Northeast transaction are positive, supporting TypTap’s view that the Exzeo technology can be effective in new regions.

Since assuming responsibility for UPC’s underwriting and claims processes, TypTap has seen significant improvement and progress toward its long-term margin targets. In fact, in 2021, TypTap’s gross written premium hit $247 million and the company was operating in 12 states, including those involved with the UPC transition.

To maximize both growth and profitability, TypTap continues to invest in its technology and utilize strategic expansion opportunities to further enhance its data analytics capabilities through expanded aggregated data sets. For TypTap, these strategic transactions further its national footprint and enhance its commitment to providing stability and security in the InsurTech industry.

Now, TypTap has access to agents and policyholders throughout the Northeast, deepening its data repository and priming for strong financial results as it progresses toward the UPC Southeast transaction across Georgia, North Carolina, and South Carolina.