Global investment in insurtech stood at $7.4bn at the halfway stage of 2021 and has already surpassed the total for any other full year, according to Willis Towers Watson (WTW).
The last quarter saw 162 deals worth $4.8bn of investment, up 210% on Q2 2020.
WTW said this “enormous” quarterly total alone is more than any other year before 2019 and was largely driven largely by 15 mega-rounds of $100m or more. Collectively, these deals reached $3.3bn, some two thirds of total funding during the quarter. The money was raised predominantly by later-stage players seeking expansion.
Some 73% of all Q2 deals were for P&C-related insurtechs, the WTW research shows.
Insurtechs focused on distribution accounted for 55% of startup deals, and for ten of the 15 mega-rounds.
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 behaviours. 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. Those that use it to redefine service in the insurance world will thrive. That means a positive future for insurtechs that bring a truly differentiated business approach to our industry. Some of them will create untold long-term opportunities for themselves and the insurance sector.”