InsurTech investment records were smashed in Q1, as investors globally executed the highest number of transactions, the highest number of property and casualty (P&C) transactions, and the highest volume of series B and series C funding rounds, according to a report from Willis Towers Watson.
The first Quarterly Insurtech Briefing for 2019 focused on the sector in January, February, and March and revealed that 85 deals with a total value of $1.42 billion were announced in that period–marking the third straight quarter to deliver over $1 in funding.
The report also showed a 35 percent increase in deal count in comparison to Q4 2018, however, total funding fell 11 percent.
Additionally, it showed that 54 percent of the deals were outside the US, which marks a continuing trend.
Deal count increased in the UK by 50 percent and in the US by 44 percent, but fell by 38 percent in China.
The first quarter also recorded the highest ever numbers of series B and C investment rounds, at 12 and 6 respectively–reflecting the increasing number of InsurTechs that are reaching adolescence.
The greatest number of P&C transactions were also recorded in Q1 2019, totaling 56, up 37 percent from Q4 2018.
Dr Andrew Johnston, global head of Insurtech at Willis Re, commented: “If last year showed us anything, it’s that there is no shortage of investment capital flowing into the InsurTech universe.”
“In 2019 Q1, we observed the highest number of transactions, the highest number of property and casualty transactions, and the highest volume of series B and series C funding rounds since the publication started recording.”
“The sheer volume of hopeful InsurTech companies and hype is becoming increasingly difficult to rationalise and one could argue that much of the space is akin to the fable of the emperor’s new clothes.”
He continued: “We are seeing, however, that a number of InsurTechs are already adding some genuine value to our industry.”
“We remain pragmatic about where in the value chain we believe this can be achieved.”
