Global InsurTech funding balloons to $4.8 billion in Q2, up 89% from Q1 to push H1, 2021 ahead of full-year 2020

Rhea-AI Summary

According to the Quarterly InsurTech Briefing by Willis Towers Watson, global investment in the InsurTech sector reached a record US$7.4 billion in H1 2021, surpassing the total for all of 2020. More than 162 deals contributed to over $4.8 billion in Q2 alone, driven by 15 mega-rounds exceeding $100 million. InsurTechs focusing on distribution made up 55% of start-up deals, with P&C-related InsurTechs accounting for 73% of total investments. The brief details influential case studies and highlights a growing trend towards technology integration in insurance.

Positive

• Record global investment in InsurTech sector at US$7.4 billion in H1 2021.
• Q2 2021 saw over 162 deals, raising more than $4.8 billion, a 210% year-over-year increase.
• 15 mega-rounds of funding exceeded $100 million, totaling $3.3 billion.
• Increased early-stage deal activity, up 9% from Q1 2021 and 200% from Q2 2020.

Negative

• None.

LONDON, July 29, 2021 (GLOBE NEWSWIRE) -- 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

FAQ

What was the total investment in InsurTech for H1 2021?

The total investment in InsurTech for H1 2021 reached US$7.4 billion.

How much investment did Q2 2021 see in the InsurTech sector?

Q2 2021 saw over $4.8 billion in investment across more than 162 deals.

What percentage of InsurTech deals in Q2 2021 were for P&C-related companies?

73% of the InsurTech deals in Q2 2021 were for P&C-related companies.

How many mega-rounds of funding occurred in Q2 2021?

There were 15 mega-rounds of funding in Q2 2021, each exceeding $100 million.

What impact did technology integration have on the InsurTech industry?

Technology integration is driving significant growth in the InsurTech industry, leading to new opportunities and improved delivery channels.