Insurtechs draw record investment
A record $US2.1 billion ($2.64 billion) of venture capital was invested in insurtechs last year, while the number of deals hit a new high of 247, according to KPMG.
Overall funding for fintech, which incudes insurtech, blockchain and other financial technology services, passed $US31 billion ($39 billion) last year.
Growing interest in regtech, artificial intelligence and the Internet of Things is expected to keep the flow of investments strong this year.
“Corporate investors are expected to remain active as they seek out partnerships and opportunities to expand into adjacencies,” KPMG says in its Pulse of Fintech Q4 report.
Insurtech offerings matured significantly last year, from advances in automation to the evolution of personalised insurance, as seen by the growth of telematics-based motor insurance.
KPMG says Trov, in which Suncorp has invested, is further developing and expanding its value propositions.
“[This year] insurtech is expected to hit its stride in terms of investment,” the report says.
“Traditional insurance companies are expected to take innovation up a notch, while blockchain consortiums are expected to expand and further develop and test specific-use cases.”