Insurtech investment remains buoyant in Q2 2019, hits $1.4bn mark: Willis Towers Watson

Investors splurged $1.41 billion on insurtech firms in the second quarter of 2019, marking the fourth consecutive occasion where investments exceeded $1.2 billion.

According to Willis Towers Watson's latest report, insurtech investments globally continued at high levels, with total 69 deals signed during the period. The number of strategic investments by re/insurers hit a record high of 36.

The value of investments in property/casualty-focused firms rose by 283 percent compared to Q2 2018, and life & health deals by 259 percent.

However, the report reveals that later-stage, typically larger investments, pushed down overall transaction volume by more than a fifth, as the number of early-stage investments dipped to its lowest point since Q3 2017, indicating increased maturity in the insurtech sector.

Seed and Series A funding into global insurtech start-ups attracted $147 million in Q2, and of that, 59 percent of target ventures focused on insurance distribution. 54 percent was invested in insurtechs from outside the US or UK.

Andrew Johnston, global head of insurtech at Willis Re, said: “Technology as a strategic vertical is now commonplace in nearly every single insurer and reinsurer across the globe, but the technology from the incoming InsurTech pastures may not be quite as green or as impacting as many incumbents had hoped – or at least anticipated. Whilst we remain resolute in our position about the value created by some InsurTechs, we are also maintaining our position of realistic pragmatism.”

Ben Nicholls, global leader of Willis Re’s alternative distribution operations, added: “There is no reason why commercial insurance sectors around the world, across most classes of business, cannot be supported more ubiquitously by readier access to appropriate Quote, Bind, Issue platforms. But only a few speciality insurers have begun to use technologically sound systems extensively. The evolution is relatively slow, but we are now meeting a number of InsurTech businesses that seem genuinely to have cracked it.”

Get all the latest re/insurance industry news with our daily newsletter -  sign up here.

Hiscox delivers profit in H1 2019 despite challenging claims experience

PartnerRe CEO praises solid second quarter 2019 results as profits increase

Marsh reshuffles captive insurance leadership

ArgoGlobal replaces Lloyd's syndicate active underwriter immediately

Cobbs Allen launches new specialty broking unit

Feature article:  15 ways technology is transforming insurance… and five to watch