Global insurtech investment reached a record $7.1 billion in 2020 despite substantial challenges to the re/insurance sector, according to a new report by Willis Towers Watson.
A total of 377 deals were completed throughout the year, the most in any year to date, while overall funding was up 12% from 2019. Deal volume increased 20%.
Fourth quarter capital raises in excess of $100 million by later-stage companies Hippo, Unqork, Waterdrop, Oscar Health, Bind Benefits, and Newfront Insurance totalled $1.1 billion, as early-stage deals declined to 47% of the total from 57% in the previous quarter.
Insurtechs from 23 countries attracted investor capital, including in previously dormant Hong Kong, Brazil, and Switzerland.
“While our industry is facing extreme issues relating to COVID-19, we also have an unprecedented level of access to technology and technologists who can help it prevail during these times of instability,” said Dr Andrew Johnston, global head of insurtech at Willis Re.
“Many InsurTechs probably feel vindicated that the insurance industry has been forced to realize the value of technology. The issue for InsurTechs now is to survive months, possibly years, of market uncertainty.’