Loonie Tumbles as Unemployment Rate Rises
Amid a huge miss in expectations for job creation in July, the Canadian dollar has tumbled.
On Friday, the loonie was down 0.42 of a cent to 91.15 cents U.S. as Statistics Canada reported that the economy created merely 200 jobs during July. Economists had predicted that some 20,000 jobs would be created. The unemployment rate dipped 0.1 of a point to 7.0 percent.
Traders were risk-averse due to global geopolitical issues, which also weighed on the loonie.
According to CBC News, Traders bought into U.S. Treasuries and the yield on the benchmark 10-year bond stood at 2.42 percent, down from 2.43 percent late Thursday, which was already the lowest level of the year. The yield dipped to 2.37 percent before rising upon Russia's Interfax report that the nation had ended military exercises near the Ukraine border.
The Russia/Ukraine conflict seemed to be the primary reason for investor concern this past week as traders anticipated the possibility of Russia invading Ukraine. Sanctions and counter sanctions and their potential effect on economic recovery in Europe caused additional concern.
Elsewhere, President Obama authorized U.S. airstrikes in Northern Iraq with a warning that they are prepared to defend American troops and civilians under siege from the ISIL.
Additionally, the conflict between Israel and Hamas in Gaza continues on.
Gold prices have lowered, with the December bullion contract in New York down $1.50 to $1,311 U.S. per ounce.
September crude in New York gained 31 cents, bringing it to US $97.65 a barrel, while August copper remained unchanged at US $3.18 a pound.
CB Insights: US Insurtechs Compete In A Now Global Market
In the first half of the year, insurtech companies around the world have raised US$7.4bn, nearly doubling their funding in Q2. According to Digital Insurance, insurtechs have raised US$4.8bn in Q2—an 89% increase in funding from Q1. But US firms are no longer the sole beneficiaries.
What Are the Stats?
Out of the 15 Q2 mega-rounds—those that top US$100mn—only eight included American firms. Pretty good, you might say. That’s over half! But US companies only made up 38% of the deals, which marks a 10% drop from Q1 and a 12% drop from 2020. Technically, therefore, US insurtechs are less influential than they’ve been in the past. But who says this is a bad development?
Despite my American citizenship, I’d argue that a more globally diverse insurance market is only for the best. Many of the world’s citizens who could most benefit from improved insurance services live outside of the States—and deserve local, tech-savvy services.
Why Does This Matter?
You’re always going to see the typical insurtech contenders from Western countries. For instance:
- German-based wefox: US$650mn Series C
- UK-based Bought By Many: US$350mn Series D
- US-based Collective Health: US$280mn Series F
But it’s critical that we address risk across the world. American insurtechs might be some of the most technologically skilled firms in the industry, but it’s not their first goal to address floods in Southeast Asia, crop destruction in China, and COVID complications in South Africa. That’s why we should celebrate that the recent Q2 round included insurtechs from 35 different countries.
According to CB Insights’ Q2 2021 Quarterly InsurTech Briefing, this was the first time that they’d observed insurtech activity in Botswana, Mali, Romania, Saudi Arabia, and Turkey. And ‘from a product, service, distribution, and underlying risk perspective, we—as a society and as an industry—are moving at an unprecedented speed’, says Dr. Andrew Johnston, Global Head of Willis Re InsurTech.
Just ask CB Insights. InsurTech value propositions have resonated with the world.