The news: Insurance holding company HCI Group’s insurtech subsidiary TypTap has submitted a draft registration statement for its initial public offering (IPO) with the Securities and Exchange Commission, per Reuters. The size and price of the offering have not yet been determined and are subject to regulatory approval.

More on this: The insurtech launched in 2016 with a flood insurance product and has since expanded to also offer homeowners coverage. It hit the $100 million mark in homeowners premiums in 2020. In February the insurtech raised $100 million at an $850 billion valuation, which it said would be used for expansion across the US—it currently operates in 13 states.

TypTap has an online platform to quickly quote and bind policies. Algorithms and artificial intelligence support the platform and help identify policies that deliver profitable results while mitigating risk.

The bigger picture: Flooding is the No. 1 natural peril in the US, ahead of storms and wildfires, yet there is a wide coverage gap in flood insurance.

Around 15 million properties across the country are at substantial risk of flooding—nearly 11% of all housing units out of around 140 million in 2019. These homeowners face nearly $19 billion in flood damages annually, but the federal government’s coverage of their homes would only take care of less than one-quarter of the potential damage.

As a result, the private market for this coverage is growing: 120 private companies were writing flood insurance in 2018, compared with just 50 in 2016, according to the National Association of Insurance Commissioners. Insurtechs’ fully digital platforms give them a competitive edge by making appropriate coverage options more easily accessible to homeowners.

Trendspotting: TypTap joins a number of other insurtechs that have gone public within the past year.

Global insurance and insurtech companies raised about $3.83 billion from IPOs in 2020, the highest amount since at least 2015. Insurtechs accounted for four out of the top five biggest IPOs in the industry—namely GoHealth, Root, Duck Creek, and Lemonade.

This trend shows no sign of a slowdown: Whether through direct listings or SPACs, insurtechs are still looking for exits. In just the last few months, Metromile, Hippo, and Bright Health all entered the public eye.