The data for insurtech investments 2018 is in. It reveals a maturing landscape characterized by the balloon volume and growing geographical diversity.
For years, insurtecs have produced some of the most exciting and innovative ideas in the insurance industry, from advanced uses of AI to radical new business models. Accenture's analysis of data from CB Insights suggests that 2018 was the largest year for investment in space.
The overall removal from the analysis is the global investment of $ 4.4 billion, which insurtechs as a whole attracted – a full-time elevation. It is up 98 percent from 2017 and represents one third of all insurtech investments since 201
The number of insurtech contracts involving industry leaders also continued to grow – another strong signal of the growing importance of insurtechs for the broader industry. According to the Accenture Research analysis, 230 insurtech last year deals with at least one traditional insurer. There are up to 192 such deals in 2017 and 178 the year before. As the picture below illustrates, the combined annual growth rate of such offers since 2012 is an impressive 49 percent.
The geographical location of insurtech investments also broke new ground last year. North America has been the leading target since CB Insights began tracking these investments in 2010. For example, in 2013, 77 percent of the agreements were funded insurance companies based in North America.
Last year changed. North America accounted for only 42 percent of the offers in 2018; The lowest part since 2010. This shrinking part is not due to a decrease in the number of North American agreements but to rapid growth elsewhere, especially in Europe and the Asia-Pacific.
Analyzing offers by the companies that attract investments reveals a further change in the insurtech ecosystem. So far, marketing and distribution have been the most popular segment of the insurtech's value chain to target. This was still the case in 2018, but agreements aimed at other parts of the value chain spread like never before.
For example, 13 deals included insurtechs with the help of analytics and computer science to improve the insurance policy, while 21 related to artificial intelligence in insurance policies, claims management or IT. This is an exciting indication that insurtechs are moving beyond their traditional marketing restrictions. They now offer innovations that can improve the core business of traditional insurance companies.
Interrupted offers from the insurance sector gave similar results to 2016 and 2017. The P&C sector once again reached the largest number of offers, with health, annuities, and several line sectors are again most of the rest.
However, the H&M, health and multiline sectors all suffered significantly more funding than in 2017. In P&C, investment value increased from $ 897 million to $ 1.7 billion. In health, it grew from $ 679 million to $ 1.5 billion, while several lines grew from $ 347 million to $ 809 million.
For a closer perspective on which companies attracted investment, let's take a look at the 10 largest insurtech agreements by 2018.
- Cambridge Mobile Telematics, $ 500 Million, US, P&C Sector, Trend: telematics
- Oscar Health, $ 375 million, US, health care, trend: digital insurer
- Devoted Health, $ 300 million, US health care, trend: price-comparison platform
- Bright Health , $ 200 million, US, health care, trend: digital insurer
- PolicyBazaar, $ 200 million, India, comparison platform
- Oscar Health, $ 165 million, US, health care, trend: digital insurer
- Gusto, $ 140 million, US, multi-line sector, trend: digital services
- Prima Assicurazioni, $ 116 million, Italy, P&C sector, trend: online insurance e
- Collective health, $ 110 million , Fo interest rates, health care, trend: service solutions
- Root Insurance, $ 100 million, US, P&C sector, trend: usage-based insurance
Now that dust has settled on insurtech agreements last year , we can certainly say that it was the biggest year than investment in space.
To cover this growing sector in the insurance industry, I will write a series of blog posts that profile some insurtechs of note. Keep an eye on this space for a deeper coverage of the insurtech landscape.
Or if you want to continue the conversation about insurtechs and the broader insurance industry, I'd love to hear from you. My contact information is at the top and bottom of this page.