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As ‘hopefuls’ and ‘hype’ grow, insurtech investment surges

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Insurtech investment was up in the first three months of the year compared with the preceding quarter, according to Willis Towers Watson.

The number of deals increased 35% to 85, with a total value of $US1.42 billion ($2.05 billion).

Although the value was down 11% on the fourth quarter of last year, it marked the third consecutive quarter above $US1 billion ($1.44 billion).

About 54% of deals were outside the US, which marks a continuing trend, Willis Towers Watson says.

The number of deals in Britain increased by 50%, but the number in China fell by 38%.

More insurtechs are moving beyond infancy and starting to attract more investment, according to Willis Towers Watson.

Insurtech investment in the property and casualty sector was up 37% compared with the fourth quarter of last year.

Willis Re Global Head of Insurtech Andrew Johnston says over-excitement may be driving the growing number of insurtechs.

“The sheer volume of hopeful insurtech companies and hype is becoming increasingly difficult to rationalise, and one could argue much of the space is akin to the fable of the emperor’s new clothes,” he says.

“However, we are seeing that a number of insurtechs are already adding some genuine value to our industry.”