Insurtech financing reached a record $ 15.8 billion in 2021, more than the total of $ 13.4 billion in 2020 and 2019, and the total 564 annual deal is also a record, according to a report Friday from Gallagher Re, Arthur J. Gallagher’s reinsurance business . Co.
More than half of the total financing, about $ 9.4 billion, was invested in real estate / non-life insurance companies, with $ 6.4 billion, about 40.5% of the total, in life and health companies, Gallagher Re said in a statement with the report.
Fourth quarter 2021 financing of nearly $ 5.3 billion more than doubled $ 2.1 billion in the fourth quarter of 2020 and nearly $ 2 billion in the fourth quarter of 2019, data from the report showed. The quarter was largely driven by 1
3 megarund deals, which accounted for 71% of the nearly $ 5.3 billion invested during that period.The US continued to attract the bulk of the funding, 9.5 billion in 2021, and has attracted about 50% of all insurtech funding since 2012. In the first quarter of 2022, the US took in 47% of the insurtech funding, with France in second place at 18% and no other nation will attract more than 6% of total funding in the first quarter of 2022.
Gallagher suggested that there is an “insight … that technology will be the platform, enabler and product that continues to keep our industry relevant and hopefully cost effective”, noting that over the past two years, in particular, pandemic restrictions “have induced distances. promotion and rapid use of technology. “
Andrew Johnston, global head of insurance technology at Gallagher Re, said in the statement that “there is no slowdown at the moment” and that since 2012 to the end of 2021, $ 41.65 billion has been invested globally in insurance companies in 2,249 businesses in 63 countries.
Johnston noted that there were fewer, only five, mega-rounds in the first quarter of 2022 and that this may be a sign that “invested capital is actually being democratized”, resulting in a more evenly distributed distribution of total invested capital.
He also reinforced the idea that technology is an integral part of the industry. “The vast majority of new insurance projects, investments and companies will be strongly supported by technology,” he said in the statement.
A recent report from the analysis company Forrester also showed record-breaking insurance financing for 2021, while its data points do not match Gallagher’s exactly due to differences in reporting methods.
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