Regardless of the tumult of 2020, the insurtech market ended the yr alive and (comparatively) nicely. Whereas funding did decline 6% YOY, the fourth quarter was the second strongest for funding in 2020 and the sixth largest since monitoring started in 2010.
The total model of our quarterly insurtech funding roundup report is on the way in which. Within the meantime, right here’s a sneak peek at a few of the highlights:
- Digital insurers garnered most of investor consideration. For the third straight quarter, digital disruptors acquired nearly all of funding, accounting for over 70% of investments in This fall. In contrast to the earlier two quarters, This fall funding went to quite a lot of areas like residence insurance coverage, digital well being insurers , and life insurance coverage disruptors.
- Funding for operational enablers ramped up. Whereas not as “buzzworthy” as digital insurers, operational enablers (e.g., information analytics suppliers and IT infrastructure distributors) remained sizzling amongst buyers, receiving over 20% of funding in This fall. Funding recipients included a no-code enterprise software, a cloud-based automation platform, and a shopper insurance coverage administration platform.
- M&A exercise reemerged after a quiet six months. There have been extra acquisitions in This fall than the primary three quarters of 2020 mixed. Of the 13 acquisitions throughout quarter, 9 have been of enablers of operational enchancment, indicating a typical pattern amongst buyers. Amongst them was Carebook’s acquisition of well being engagement platform Novus Well being and Daring Penguin’s acquisition of AI platform RiskGenius.
There’s no query that the insurance coverage trade will endure main shifts within the subsequent 5 to 10 years, and insurtechs will certainly play a significant function within the transformation.
To be taught extra concerning the insurtech market and what it means for your online business, look out for the discharge of the full report. Within the meantime, remember to schedule an inquiry with us or take a look at our earlier quarterly stories: