2Q 2017
June 21, 2017
Here's the latest entry in PitchBook's continuing research of the fintech space, with this analyst note providing an update on the most important trends within insurance. In spite of premiums accounting for 7% of US GDP, the operational expertise required to launch a venture in the insurance space remains far higher than that required for other applied technology platforms. The insurance industry in general has bought itself time with huge economies of scale and massive balance sheets due to the favorable quirks of their accounting treatment and business models. Lately, insurers have begun to use their balance sheets to fund corporate venture arms to lead the charge on funding potential disrupters. This phenomenon has emerged as corporate VCs serve as a focal point of innovation between traditional VCs partnering with insurance giants to provide capital, and startups providing innovative technology and ideas to the industry.