In 2020, the upward trend in financing for insurtechs changed slightly, maintaining almost the same levels as 2019, while the number of operations decreased by around 30% compared to 2019. Consequently, in 2020 the average per operation reached an all-time high (2010-2020).
There are three main variables that explain these facts:
- Impact of COVID-19: uncertainty and increased risks encouraged strategic investments. Direct investments in well-established insurtechs or potential new disruptors were preferred rather than opting for riskier bets.
- Market consolidation: the announcements of IPOs, Acquisitions and SPAC not only in the USA, but also in emerging markets were a sign of the high level of maturity of the insurtechs, at least for the first wave of innovation.
- Super Deals: large deals did not lose power. These investments have the greatest impact in terms of the total amount of financing obtained.
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Culled from https://insurtech-insurance.nttdata.com/report/intro