The latest quarter saw 162 deals yield more than $4.8 billion in investment, a 210-per-cent increase over Q2 2020. The quarterly total, itself more than any annual total before 2019, was driven largely by 15 mega-rounds of $100 million or more. Collectively, these deals reached $3.3 billion, or two-thirds of total funding during the quarter. The money was raised predominantly by later-stage players seeking expansion.
Distribution insurtechs make up majority
InsurTechs focused on distribution accounted for 55 per cent of start-up deals, and for 10 of the 15 mega-rounds. Most of the distribution InsurTechs target reduced dependence on agent channels. Of all Q2 deals, 73 per cent were for P&C-related InsurTechs. Funds were raised by companies from 35 countries, including new entrants Botswana, Mali, Romania, Saudi Arabia, and Turkey.
Dr Andrew Johnston, Global Head of InsurTech at Willis Re, said: “As technology changes our lives, society will demand an insurance community that reflects and supports our changing, digitally empowered behaviors. Consumers and businesses increasingly expect insurance to be delivered when and how they want it, and risk carriers that fail to respond will fall away over time. To embrace technology is a minimum survival condition.”
As of mid-2021, insurtech outliers are breaking the pandemic gloom and attracting some ground-breaking investment, says analytics company GlobalData.