InsurTech deal value up 155% on 2017
Written by Peter Walker
Sixty three InsurTech deals with a total value of $1.59 billion were announced worldwide in the fourth quarter of last year, up 24 per cent on the previous quarter and 155 per cent year-on-year.
The total, including all-stage investments in property, casualty, life and health ventures, is the second highest ever, just behind the exceptional second quarter of 2015, according to from advisory firm Willis Towers Watson.
After rising for several years, the number of strategic InsurTech investments by re/insurers declined by six per cent from its peak in the second quarter of 2018, but funding increased significantly.
The analysis found that 11 insurance-sector investors ploughed $218 million into InsurTechs in the fourth quarter, up 230 per cent from the previous quarter. Currently the global industry maintains 31 strategic partnerships with technology companies – the highest number recorded.
The latest Willis Towers Watson briefing focused on sophisticated new InsurTech tools to help manage cyber risk, with the firm’s global head of cyber Mark Synnott saying there is a healthy ecosystem of InsurTechs, insurers, reinsurers and brokers working to quantify and price individual and portfolio cyber risk under affirmative coverage.
“More work needs to be done to address silent cyber, since potential accumulation exposure is enormous, but it is under way,” he added.