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July 30, 2021

Global insurtech funding hits $4.8bn in Q2 2021

By Patrick Brusnahan

Global investment and funding in the insurtech sector totalled $4.8bn in Q2 2021, and $7.4bn in H1 2021, exceeding previous years.

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by GlobalData
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This is according to the Quarterly InsurTech Briefing from Willis Towers Watson.

Insurtech funding in Q2 2021

Q2 2021 saw 162 insurtech deals and a 210% increase year-on-year for the quarter. This was driven by 15 rounds of $100m or more and these deals reached $3.3bn altogether.

In addition, Series B and C fundraisings drove the large number of deals in Q2, but the number of early-stage deals also increased. Those were up by more than 9% from the previous quarter and 200% year-on-year. Early stage activity totalled 57% of overall deals in the quarter.

Insurtech focused on distribution accounted for 55% of start-up deals and for 10 of the 15 $100m+ rounds.

Furthermore, 73% of the deals in the quarter were for P&C-related insurtech.

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.”

Clyde Bernstein, head of GB broking and global leader of data and technology broking strategy at Willis Towers Watson, said: “Lift the hood on the insurance industry and you will see the engine in danger of over-heating. The diagnosis from those tasked with keeping the industry on the right trajectory is that a different motor is needed. Fortunate passengers will enjoy the ride as new distribution and technologies deliver a better and more responsive client experience.”

Free Report
img

What will drive the cyber insurance market over the next 3 years?

The global cyber insurance market was worth $7bn in gross written premiums (GWP) in 2020. It will reach $20.6bn by 2025, as the market will continue to thrive post-COVID-19. Our recent report on Cyber Insurance reveals that cybersecurity was thrust into the spotlight in 2020 as COVID-19 forced businesses to digitize their processes and adopt remote working practices overnight. The pandemic also presented an opportunity for cybercriminals to exploit global panic, with a surge in cyberattacks occurring in 2020. The need for cyber insurance is apparent, but the market is not as easy to navigate as it once was. Use our report to guide and help you to:
  • Benchmark yourself against the rest of the market.
  • Ensure you remain competitive as new innovations and insurance models begin to enter the fray.
  • Prepare for how regulation will impact cyber insurance over the next few years.
Download the full report to understand what to expect and how to align your business for success.
by GlobalData
Enter your details here to receive your free Report.

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