A few months ago, we introduced you to a lesser-known insurance technology stock called CCC Intelligent Solutions (CCCS). While we found CCC to be a “surprisingly interesting company flying under the radar,” we were not overly compelled by the market opportunity due to its heavy reliance on the automotive insurance industry, which may be upended by the coming self-driving revolution. In addition, its recent merger with a special purpose acquisition company (SPAC) in order to access the public markets is an automatic red flag for us. SPACs have notoriously overpromised and underdelivered over the last few years, though CCC appears to be the exception to the rule. It has posted solid revenue growth over the last decade through digitization and the adoption of artificial intelligence.
However, CCC is not the only decades-old company in the midst of rebranding itself as a software-as-a–service (SaaS) insurtech. We also recently came across Guidewire (