Bucking COVID-19, big insurers invest more in insurtech than ever
Insurtech funding rose 52% from the second to third quarter, according to CB Insights’ State of Fintech Q3 2020 report.
Funding reached $2.56 billion in Q3, up from $1.7 billion in Q2 and $978 million in Q1. In the third quarter of 2019, funding was just under $2 billion.
Nearly half of that funding came from five megadeals:
- $500 million for Bright Health
- $250 million for Next Insurance
- $230 million for Waterdrop Inc.
- $150 million for Hippo
- $130 million for PolicyBazaar
The top 25 insurers completed 66 total deals so far in 2020, the most ever for this cohort on a year-to-date basis. In total, 318 VC deals were completed in the first three quarters of the year, rising from 99 in Q2 to 105 in Q3.