Research from broking group Willis Towers Watson (WTW) has found that worldwide funding commitments to the InsurTech sector in 2019 have already surpassed the full-year total for last year.
In their Quarterly InsurTech briefing WTW said the third quarter of this year saw the total exceed $1.2 billion for the fifth consecutive quarter-year period.
In all 83 deals with a total value of $1.5 billion were announced in Q3, 2019, up 6% over the previous three months to reach the third-highest quarter for global InsurTech investment to date. Deal numbers were up 20%, and marked the first quarter since Q2, 2018 when investments in B2B InsurTechs outnumbered investments in distribution-focused ventures. The value of investments in property/casualty-focussed firms continued to rise, supported up by three mammoth deals backing Root Insurance, Hippo, and PolicyBazaar.
Dr Andrew Johnston, Global Head of InsurTech at Willis Re, said: “The continuing rise in InsurTech investment acknowledges the enormous role technology has to play in our industry, but we need to avoid becoming a sector jaded and frustrated by it. Today’s InsurTech is as much about hype and entrepreneurial culture as it is about appropriate technology for the (re)insurance industry.
“InsurTech’s greatest achievement to date has been to act like a deﬁbrillator on the heart of the insurance industry. People across the sector now talk more positively about the use of technology. Some see it as the potential saviour of a broken system.”
Jason Rodriguez, Data Science Lead at Willis Towers Watson’s Insurance Consulting and Technology Americas said: “Policy administration systems form the backbone of policy issuance. Over time, the process has become increasingly automated. With InsurTech innovations, insurers are able to achieve a complex, bespoke information technology solution that fits their businesses by abandoning one-size-fits-all systems in favour of a mix-and-match approach. This allows them to shop for value in one functional area while investing in a best-in-class solution in another.”