Funding from insurers, venture capitalists and other firms in the insurtech industry reached $985 million in the second quarter of 2017, according to Willis Towers Watson and CB Insights’ quarterly Insurtech Briefing. That’s up from $283 million last quarter and $398 million in the same period last year.

The total is the most in terms of raw dollars since the second quarter of 2015 and the second-highest quarter since Q1 2012, the companies say. In addition, the 64 total deals in the quarter are the most ever in a three-month period. Of those 64, 31 were perfomed by the venture arms of insurance companies, also a record for a quarter.

“The increase in funding volume was driven by the number of transactions, as well as several large capital-intensive carrier investments globally,” writes Rafal Walkiewicz, CEO of Willis Towers Watson Securities, in an introduction to the study.

The proportion of deals focused on the distribution segment of the insurance value chain stayed steady at about two-thirds of P&C investments and 4 in 10 life investments. Small-business-focused initiatives also remained popular.

However, claims is increasingly being targeted for disruption by insurtechs and incumbent claims management companies, Walkiewicz continues. He cites Crawford and Co.’s acquisition of WeGoLook for more than $30 million as an indicator that incumbents are looking to new entrants to improve the customer experience during the claims process.

“Claims management can be the most powerful driver of customer satisfaction and retention,” Walkiewicz writes. “For investors that build their thesis around disruption driven by risk mitigation, claims managers are particularly attractive.”

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