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Insurtech funding reaches new heights. Information on insurtech funding and key deals & partnerships

3/9/22

Insurtech funding reaches new heights. Read on for more information on insurtech funding and key deals & partnerships in the industry.


· Insurtech funding is on the rise and likely to grow.

· Insurtech improves business efficiency.

· Government legislation and regulatory reform are fuelling this growth.


The insurance sector has seen a lot of change in recent years, and one of the biggest driving forces behind that change has been insurtech. From new start-ups to established tech companies, insurtech firms have been shaking up the industry and bringing innovation to insurance products and services. And they've been doing it with the help of some serious funding. In this blog post, we'll look at some of the biggest insurtech deals, including both seed funding rounds and major Series A and B investments. So, if you're wondering where the future of insurance is headed, read on for some insights into what's driving the industry forward.

The coverage of the sector's unicorns has been dismissive of late due to the falling share price of Lemonade currently trading at $20.80 down from $29. Metromile is trading at $1.80. Root is trading at $1.52. Oscar is trading at $7.90 on NYSE. These falling share prices do not necessarily reflect the insurtech sector.


One thing that is clear is that insurtech funding is on the rise. In fact, according to a recent report from CB Insights, insurtech funding reached new heights in FY21. ''Although global insurtech funding has dropped 35% from the previous quarter’s record peak to $3.1B across 113 deals, insurtechs have raised a whopping $10.5B across 427 deals in 2021 so far. This funding figure is already 48% greater than 2020’s year-end total, and deals are also up 13%.'' CB Insights.


There are a number of factors at play here. First, there's been a general increase in venture capital investment across all industries in recent years. And secondly, insurers are starting to see the value of working with insurtech firms, and are therefore investing more money into them.

Some key areas these investments have been invested in are in cybersecurity, cyber policies due to the cyber challenges businesses face globally has been a focus of insurers and venture capitalists for many years now.

Seed funding rounds are typically smaller investments, often in the range of a few hundred thousand dollars to a few million dollars. But Series A and B investments can be much larger, sometimes in the tens of millions of dollars.


So, without further ado, let's take a look at some of the biggest insurtech deals of recent years.


One of the biggest insurtech deals in recent years was the investment that Lemonade received in January 2020. The company raised $120 million in a Series D round, bringing its total funding to $480 million. This was by far the largest investment that Lemonade had ever received, and it was also one of the largest insurtech deals ever recorded.

Lemonade is a New York-based insurtech firm that offers homeowners and renters insurance. The company has quickly gained a reputation for being innovative and customer-focused, and it has attracted a lot of investment from both insurers and venture capitalists.


Another major insurtech deal was the investment that Root received in June 2019. The company raised $100 million in a Series B round, bringing its total funding to $165 million. Root is a San Francisco-based insurtech firm that offers car insurance. Like Lemonade, Root has quickly gained a reputation for being innovative and customer-focused, and it has attracted a lot of investment from both insurers and venture capitalists.

In July 2019, Oscar Insurance Corporation announced that it had raised $375 million in a Series D round. This was the largest investment that Oscar had ever received, and it brought the company's total funding to $1.5 billion. Oscar is a New York-based insurtech firm that offers health insurance.

These are just a few examples of the many insurtech deals that have been announced in recent years. As you can see, the insurtech sector is booming, and it's attracting a lot of investment from both insurers and venture capitalists. So, if you're wondering where the future of insurance is headed, keep an eye on the insurtech sector - it's where the action is happening!


Despite these firms offering innovative products and consistently showing they are able to raise money and offer customers something new from insurers there is still more that could be done to raise the profile of these firms amongst the public.


UK insurtech firms have flourished, more recently, Marshmallow (a team and company I know well) raised money to be valued at over $1bn in 2021. The company use advanced tech to target people underserved by the insurance market.


DeadHappy, the Leicester-based life intermediary, raised $15m to expand it's offering. 'Would you ever buy life insurance from a company skull? Dead Happy targets new generation of customers' was a headline on ThisIsMoney.co.uk in 2019, judging by the success of the company recently the answer is ; yes.


Earlier this week, Aviva announced a strategic partnership with Zego, another insurtech unicorn. Zego offer the best in tech led commercial fleet insurance.

Business wire, the Berkshire Hathaway company, reported that the insurtech industry is likely to grow 2022-2026 which 'is driven by the need to improve business efficiency and the dominance of government regulations on mandatory insurance coverages in the UK'. Add into that the General Insurance Pricing Practices and you have a concoction for wet pallets in the ways of raising money for insurtech.

That’s a wrap! We hope you found this article insightful. If you are in the insurance or technology industry, it is definitely worth keeping an eye on insurtech funding and growth – especially if you want to stay ahead of the curve. As always, we would be happy to hear from any journalists or PR professionals who are interested in learning more about our services. Get in touch anytime!

I will be doing more on the insurtech start-ups making a splash in future articles and newsletters, if you think somebody you know may be interested then please let them know. I'll also have some industry people talking to me about the GIPP changes and what they mean for businesses and consumers. Thanks for reading.

Sources

https://www.insurancebusinessmag.com/uk/news/commercial-vehicles/aviva-zego-form-new-fleet-insurance-deal-397665.aspx


https://www.thisismoney.co.uk/money/lifeinsurance/article-6768455/Dead-Happy-buy-life-insurance-skull-logo.html


https://www.marshmallow.com/


https://www.cbinsights.com/research-global-insurtech-report?utm_campaign=marketing_wtw-insurtech_2021-10&campaignid=270202443&adgroupid=128930004641&utm_term=%2Binsurtech&utm_source=google&utm_medium=cpc&utm_content=adwords-reports-quarterly-annual-reports&hsa_tgt=kwd-321042473751&hsa_grp=128930004641&hsa_src=g&hsa_net=adwords&hsa_mt=b&hsa_ver=3&hsa_ad=557796437917&hsa_acc=5728918340&hsa_kw=%2Binsurtech&hsa_cam=270202443&gclid=Cj0KCQiAmpyRBhC-ARIsABs2EAon3XhXtiTFmht_FPE9Mg5U5FKq6eF1rj8ZqM_3Tnjc_sDrD_QnOmUaAnqUEALw_wcB


https://techcrunch.com/2022/02/04/why-2022-insurtech-investment-could-surprise-you/?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAMAX34IFHbPx39h5fyg6umIcRZwQSRwQ320L5NzMDYik7ydAXPj_o2GIqRw7BMa2yvTvoKyiHS73eVwd4osqWaAi6-vSXpMWDCfnFC1JN3yy-_kGzX-31qvJaSkB_VDzTQluvpLwJ8k6jsZX6h2vMhNbJLCYIEYcbimVZYN53_un


https://www.bloomberg.com/europe




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