Thematic Intelligence: Insurtech 2024

This report provides a comprehensive analysis of the current state and future outlook of the insurtech industry. It examines the shifts in investment trends following rapid growth in 2020 and 2021, highlighting how rising interest rates and economic challenges in 2022 and 2023 have shaped a more cautious investment landscape. The report also assesses the ongoing impact of insurtech on traditional insurance companies, detailing how incumbents are responding to the innovations driven by startups. It includes a range of case studies and data-driven insights to illustrate the adoption and integration of these technologies across the insurance value chain.

In 2023, the insurtech sector recorded 197 deals worth $7.83 billion, marking a significant increase in deal value despite a slight decline in the number of deals compared to 2022, which saw 207 deals totaling $5.02 billion. This represents a 56% increase in total deal value year over year, underscoring a trend towards larger, more strategic investments. Several factors contributed to this upward shift in deal value in 2023. Economic recovery played a pivotal role, as global growth projections improved and inflationary pressures began to stabilize. This resurgence in economic stability bolstered investor confidence, leading to a willingness to commit larger amounts of capital to the insurtech sector.

Scope

• According to the analyst’s Deals Database, as of June 2024, there have been 77 insurtech deals, amounting to $3.59 billion. This represents 39.1% of the total deal volume and about 45.8% of the total deal value compared to the whole of 2023, which had 197 deals worth $7.83 billion.
• Since 2019, North America has been the predominant hub for insurtech investments, accounting for $46.2 billion in deals, which represents 69.4% of the total global investments.
• As per the analyst’s 2023 UK Insurance Consumer Survey, 80.4% of consumers indicated that they would not buy insurance from an insurtech brand.

Reasons to Buy

• Identify leaders in the insurtech space across a variety of disciplines.
• Determine how leaders use modern technologies to drive efficiency and reach new consumers.
• Recognize how incumbents are collaborating with insurtechs to improve their own product offering and customer experience.
• Evaluate the strength of investment into the insurtech theme and ascertain the drivers behind changes.