Insurtech investment reached new high in 2020

The funding came through 377 deals, the most in any year to date, according to the new Quarterly Insurtech Briefing from broking company Willis Towers Watson (WLTW).

Compared with 2019, total funding increased by 12 per cent, while deal volume increased by 20 per cent. Insurtechs raised $2.1 billion across 103 deals during Q4, with 67 per cent of the funds attracted by property/casualty-focused firms. Life and health insurtechs saw a modest decrease in deal share of 1.6 percentage points in the quarter, and an 8.4 percentage-point decline in total funding over Q3, 2020.

Insurtechs from 23 countries attracted investors

Q4 fundraisings in excess of $100 million by later-stage companies Hippo, Unqork, Waterdrop, Oscar Health, Bind Benefits, and Newfront Insurance totalled $1.1 billion, as early-stage deals declined to 47 per cent of the total from 57 per cent in Q3, 2020. Mid-stage Series B or C deal flow surged somewhat to reach 29 per cent of the total number. Insurtechs from 23 countries attracted investor capital, including in previously dormant Hong Kong, Brazil, and Switzerland.

Dr Andrew Johnston, Global Head of Insurtech at Willis Re, said: “While our industry is facing extreme issues relating to Covid-19, we also have an unprecedented level of access to technology and technologists who can help it prevail during these times of instability. Many insurtechs probably feel vindicated that the insurance industry has been forced to realise the value of technology. The issue for insurtechs now is to survive months, possibly years, of market uncertainty."

At the end of last year, the top 100 pioneering companies transforming the global insurance industry were announced by FinTech Global.