This report takes a data-driven look at global insurance tech trends with a focus on the life, accident, and health insurance market.
In Q4’20, insurtechs raised $2.1B across 103 deals — falling short of the prior quarter’s record levels of activity.
Despite the drop, the quarter’s strong showing helped push annual insurtech funding in 2020 to an all-time high of $7.1B.
Q4’20 Insurtech Highlights:
- Insurtech funding finishes 2020 at a record high: With a strong final quarter, annual insurtech funding in 2020 reached an all-time high of $7.1B across 377 deals — a 12% increase in funding and a 20% increase in deals compared to 2019.
- Home insurtechs continued to attract investment: Direct-to-consumer (D2C) home insurance players raised funding, including Hippo, which raised the quarter’s largest round — a $350M Series F. In addition, Paris-based Luko, which also provides sensor-based D2C home insurance, raised a sizable $60M Series B.
- In the shadow of P&C insurtechs, L&H startups are quietly maturing: While the first wave of insurtech IPOs was P&C-focused, L&H insurtechs are readying themselves for public debuts. Though L&H insurtechs represented just 27% of total deals this quarter, over the last two quarters, L&H insurtechs represented 50% of later-stage mega-round ($100M+) deals.
- Life- and health-focused insurtechs see geographic diversity: L&H insurtech in 13 countries raised funding in Q4’20, more than in any other quarter since 2016. Australia, Switzerland, Israel, and South Korea, which have historically had little activity in L&H insurtech, received funding as insurtech models gain application in new geographies.
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