Insurtech funding up in third quarter as fewer deals yield higher values

Insurtech funding in Q3 was a whopping $1.26 billion, the largest dollar amount since the second quarter of 2015, according to Willis Towers Watson's quarterly insurtech briefing.

The high value came despite the fewest total deals being inked of any quarter this year. The 57 total deals were a drop from the 72 in Q2 and 66 in Q1, but the number of agreements of more than $40 million -- eight -- more than doubled the amount that had been that size in those quarters combined.

Compared to Q3 of 2017, deal count was up by 19% and funding volume tripled.

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"The trend of growing round sizes continues," writes Rafal Walkiewicz, CEO of Willis Towers Watson Securities, in the report. "(Re)insurers continue to actively participate in the funding of insurtech, but the pace decreased as compared with prior quarter. The pipeline of InsurTech partnerships, however, continues to be very strong."

For more information from the report, including the largest deals of the quarter and a spotlight on parametric insurance, see Willis Towers Watson.

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