Global InsurTech funding balloons to $4.8 billion in Q2, up 89% from Q1 to push H1, 2021 ahead of full-year 2020
July 29 2021 - 4:00AM
Global investment in the InsurTech sector reached an emphatic
record during H1, 2021, as half-year funding of US$7.4 billion
exceeded full-year investment in 2020, and in every other year,
according to the new Quarterly InsurTech Briefing from Willis
Towers Watson, a leading global advisory, broking and solutions
company (NASDAQ: WLTW).
The latest quarter saw 162 deals yield more than
$4,824 million in investment, a 210% increase over Q2, 2020. The
enormous quarterly total, itself more than any annual total before
2019, was driven largely by 15 mega-rounds of $100 million or more.
Collectively, these deals reached $3.3 billion, or two-thirds of
total funding during the quarter. The money was raised
predominantly by later-stage players seeking expansion.
Meanwhile Series B and C fundraisings drove the
large number of deals in the second quarter, but the number of
early-stage deals also increased. They were up by more than 9% from
the previous quarter, and 200% from pandemic-stricken Q2, 2020. As
a percentage of overall deals, early stage activity held roughly
steady, at 57%.
InsurTechs focused on distribution accounted for
55% of start-up deals, and for 10 of the 15 mega-rounds. Most of
the distribution InsurTechs target reduced dependence on agent
channels. Of all Q2 deals, 73% were for P&C-related InsurTechs,
while 43 companies raised funds for L&H technology. 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 behaviors. 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.”
The latest Briefing, which focuses on InsurTechs
targeting insurance distribution, opens with a detailed exploration
of the way technology is impacting the future of delivery channels.
The Briefing includes case studies of the InsurTechs bolttech,
which connects insurers, distribution partners, and customers over
an exchange platform; Semsee, a platform for quoting small
commercial business; Breathe Life, a digital distribution platform
for life insurance carriers; Uncharted and Bindable, two
consumer-facing insurance aggregation platforms; Penni.io, which
embeds carriers’ products into distribution partners’ digital
customer journeys; and Talage, a commercial quoting engine built
for white-labelling.
The Q2, 2021 Briefing includes a discussion with
Adrian Jones, Managing Director of InsurTech investor Hudson
Structured Capital Management, and another with Chief Digital
Officer Sean Ringsted, who leads global insurer Chubb’s digital
integration effort. ‘Transaction Spotlight’ takes a deep-dive into
three recent Series D mega-round fundraisings by the InsurTechs
Ethos ($200m), Bought by Many ($350m), and Shift Technology
($220m), while ‘Technology Spotlight’ explores Willis Towers
Watson’s Radar Workbench, an analytical platform that helps
commercial underwriters make and implement confident decisions at
pace.
Finally, the issue carries an article by Clyde
Bernstein, Head of GB Broking and Global Leader of Data and
Technology Broking Strategy at Willis Towers Watson. Bernstein
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.”
View the full report here.
About Willis Re
One of the world's leading reinsurance brokers,
Willis Re is known for its world-class analytics capabilities,
which it combines with its reinsurance expertise in a seamless,
integrated offering that can help clients increase the value of
their businesses. Willis Re serves the risk management and risk
transfer needs of a diverse, global client base that includes all
of the world's top insurance and reinsurance carriers as well as
national catastrophe schemes in many countries around the world.
The broker's global team of experts offers services and advice that
can help clients make better reinsurance decisions and negotiate
optimum terms. For more information, visit
willistowerswatson.com/Solutions/reinsurance.
About Willis Towers Watson
Willis Towers Watson (NASDAQ: WLTW) is a leading
global advisory, broking and solutions company that helps clients
around the world turn risk into a path for growth. With roots
dating to 1828, Willis Towers Watson has 45,000 employees serving
more than 140 countries and markets. We design and deliver
solutions that manage risk, optimise benefits, cultivate talent,
and expand the power of capital to protect and strengthen
institutions and individuals. Our unique perspective allows us to
see the critical intersections between talent, assets and ideas –
the dynamic formula that drives business performance. Together, we
unlock potential. Learn more at willistowerswatson.com.
Media contact
Haggie Partners: +44 20 7562 4444 | willisre@haggie.co.uk
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