Insurtech startups compete head-on with traditional carriers
May 19, 2021
The pandemic accelerated the digital transformation of most insurers as many had to interact with customers remotely, underwrite assets without physical inspection or adjust claims virtually. Insurtech startups also found an opportunity to enter new markets and attract underserved customers—increasingly threatening slower incumbents.
Our latest installment of Emerging Tech Research explores the major trends that shaped this space in the first quarter of 2021, including optimism around embedded insurance products and a record exit value. Among the takeaways:
Our latest installment of Emerging Tech Research explores the major trends that shaped this space in the first quarter of 2021, including optimism around embedded insurance products and a record exit value. Among the takeaways:
- Insurtech startups raised $2.2 billion across 110 deals globally, with commercial lines attracting about one-third of total capital invested in the vertical.
- Late-stage valuations jumped during the quarter without significant changes in median deal sizes, potentially indicating that late-stage founders are decreasing equity share offerings.
- Embedded insurance is expected to be the fastest-growing distribution channel in the decade to come.
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