How Actuaria Helped An Insurtech Company Turn Home Price Volatility into an Insurable Opportunity – An Insurtech Case Study

When this Insurtech Company, a data intelligence company focused on real estate, approached us, they had a bold idea—to insure homeowners against declining property values. Their concept was designed to give homeowners peace of mind: if they needed to sell their property within three years and the market had dipped, the policy would help offset that loss.

It was innovative. It was complex. And it had never been done before.

Cracking the Complexity Behind Home Price Insurance

The Insurtech Company had one significant advantage—they were already generating detailed property price indices across the United States. They also had access to extensive historical property transaction data.

But turning this data into a viable insurance product required more than just analysis. It required actuarial insight, creative structuring, and a deep understanding of risk.

We partnered with them to bring clarity and structure to their vision.

We started by working through the data—years of property sales, regional trends, and the proprietary indices they had developed. The goal was to quantify what a loss would look like, not based on actual sales prices but on index performance. This product wasn’t going to reimburse homeowners for real transaction losses—it would pay out based on index movement alone.

Bridging the Gap Between Innovation and Risk Management

One of the early challenges was understanding how the indices produced by this Insurtech aligned with broader benchmarks like the FHFA indices. We conducted a detailed comparative analysis to determine correlation, divergence, and suitability for pricing and reserving. These insights allowed us to develop assumptions and parameters that would underpin the product structure.

But understanding the past wasn’t enough—we needed to stress-test the future.

We built robust simulation models to project how indices might behave under various market conditions, including tail-risk scenarios. These simulations weren’t just technical exercises—they were key in estimating economic capital requirements, which would inform decisions around funding, reinsurance, and risk-sharing.

Throughout the engagement, we didn’t just act as modelers—we became strategic partners.

Helping Take the Product to Market

Bringing a product like this to life required more than just technical soundness—it demanded buy-in from multiple stakeholders across the insurance ecosystem, including reinsurers, insurers, captive providers, and investors.

The Insurtech company led the charge in presenting the opportunity to these stakeholders, articulating the vision behind the product and the market need it addresses. Our role was to support them throughout this journey—helping shape the actuarial narrative, preparing pricing exhibits, refining risk assessment frameworks, and contributing to a compelling business case.

We worked closely with the team to ensure that every presentation, model, and document aligned with the product’s core logic and market potential. The simulation tools and capital models we built were instrumental in quantifying and communicating risk to partners, while our templates and technical validation helped streamline discussions around feasibility and structuring.

After a thorough and collaborative process over nearly two years, they successfully secured the confidence and backing of key partners. The product is now live in multiple geographies, with a growing distribution network and a dynamic approach to expansion.

From Vision to Reality

This project exemplifies what happens when data science meets actuarial thinking and is guided by a clear business vision. The client’s idea was bold, but by grounding it in rigorous analysis, simulation, and transparent communication, it became a reality.

And we’re proud to have been a part of it.