Insurtech startup funding: Big deal jump, small dollar bump

Published February 2, 2021 5:13 AM

Updated February 2, 2021 5:13 AM

1 Min Read

di-doc-at-computer-covid-033020 — Doctor David Fistera works in his office at the central reception centre for corona cases at the University hospital in Essen, western Germany, on March 26, 2020. Photographer: Ina Fassbender/AFP/Getty Images

Despite the massive disruption of the coronavirus pandemic, insurtech startup funding recorded all-time highs in total deals and dollar value volume in 2020. However, the rate of increase slowed considerably with the latter.

In wrapping up the year, Willis Towers Watson and CB Insights’ quarterly insurtech briefing for the 4th quarter of 2020 finds that total insurtech funding increased from $6.3 billlion in 2019 to $7.1 billion in 2020, a 12% increase year over year. This compares to an 87% jump from 2017 to 2018 and 52% from 2018 to 2019.

In terms of total deals, total deals rose 20% from 2018, from 314 to 377. That matches the percentage increase for each of the past two years.

However, the fourth quarter of 2020 itself broke a record for rounds of more than $40 million. A dozen of these deals were recorded, beating the previous high of 11 in a quarter. The 75 P&C deals represented an all-time high as well, beating the previous quarter’s 74; there were three quarters with more than 70 P&C deals in 2020. Life insurance deals numbered 28, the second-highest of the year but three fewer than the same period in 2019.

In total, $2.1 billion was invested in insurtech in Q4 2020, down from $2.6 billion in Q3 but still the second-highest dollar amount on record. Just under $2 billion was invested in Q4 2019.

Nathan Golia

Editor-in-Chief

Nathan Golia is editor-in-chief of Digital Insurance and the chair of the Dig | In: The Digital Future of Insurance conference. Nate has been... Read full bio

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