Singapore insurtech sector booming

A cable car in Singapore

Insurtech funding in the Southeast Asian city-state nearly quadrupled between January and September this year compared with the same period in 2018

A new report from global professional services firm Accenture found that in the first nine months of this year, insurtech companies accounted for 17 per cent of total fintech funding in Singapore, with the value of the funding rising from $35 million last year to $128 million this year.

Looking at fintech more broadly, it’s nice to see that overall funding for the sector in the first nine months of this year jumped by 69 per cent, reaching $735 million (compared with $435 million in the same period last year). Interestingly, the number of deals fell by 29 per cent, indicating that investors are taking bigger stakes in fewer enterprises.

Payments startups and those relating to lending were the biggest recipients of funding, making up 34 per cent and 20 per cent of the total number of deals, respectively.

“This steady flow of funds shows investors’ confidence in the future growth potential of the fintech industry in Singapore,” commented Divyesh Vithlani, Managing Director at Accenture. “The upcoming unveiling of virtual banking licences will bring even more opportunities for fintech startups and traditional banks to partner and co-operate.”