• Insurtech funding has slightly cooled off, mostly at late stage, but there is a $6 trillion opportunity to unlock and the sector is still heavily underfunded, compared to areas of similar potential such as fintech, health, and mobility.
  • Global insurtech funding has pulled back almost 50% in Q1 2022. Q2 is showing a further slowdown so far, going back to pre-pandemic levels. The pullback has been mostly at the late stage, while the number of early and medium
    stage rounds set a new record in Q1 2022.
  • Europe posted its second-best quarter ever in Q1 2022 and is closing the gap with the US, which saw the strongest pullback. Asia’s growth has been flat, while Latam is starting to emerge.
  • Unicorn creation has slowed down significantly. There are now 62 unicorns globally, only 5 were created so far in 2022 compared to 26 in 2021.
  • Insurtech M&A keeps going strong, reaching record levels in Q1 2022, while public listings have slowed down.
  • Public insurtech challengers’ valuations have fallen as much as 95%. These players have faced challenges in both underwriting and distribution. Their losses are still higher than industry averages and direct distribution proved expensive. Indirect distribution is back again with a focus on agents and embedded insurance.
  • Insurers and insurtechs are expanding from risk transfer and mitigation to prevention. This is happening with the use of IoT for asset monitoring in P&C and with engagement for healthy behaviours in L&H.
  • Climate change dominates global risks both in the short and long term. Insurers and insurtechs are actively engaging in the climate transition by setting net-zero targets and industry-wide initiatives such as the Net-Zero Insurance Alliance, while also focusing on ESG software, parametric insurance, and geospatial analytics.
  • The Silver Economy is estimated to be a $15 trillion market and there are many opportunities to address the different needs of the various phases in the senior life stage. Additionally, this generation underwent the transition from analogue to digital, so remote patient monitoring, telemedicine, and wearable devices such as smartwatches can make virtual healthcare a reality for seniors in the near future.

 

29th June 2022, Amsterdam:

The report has been developed by Dealroom.co, Mundi Ventures, MAPFRE, and NN Group, drawing on the partners’ collective insurance innovation expertise, to bring insights on the current state and trends of European and global insurtech.

The report is powered by the Insurtech database, an open-access platform powered by Dealroom.co, with support from Mundi Ventures, tracking the insurtech innovation ecosystem, cataloguing 3,000+ startups, 3,800+ funding rounds, and 1,250+ exits of innovative companies addressing all parts of the insurance value chain and market segments.

Insurtech funding has slightly cooled off especially at late stage, but early and medium stage deals are at all-time-high.

Due to the new funding environment and the bad performances of insurtechs in public markets, the global insurtech funding has pulled back almost 50% in Q1 2022, going back to pre-pandemic levels. Q2 is showing further slowdown so far.

 

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The pullback has been mostly at late stage, while the number of early and medium stage rounds set a new record in Q1 2022.

 

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This signals that the market has cooled off from the 2021 euphoria, but the $6 trillion insurance industry still offers huge opportunities and is waiting for much disruption.

Insurtech startups are in fact heavily underinvested, compared to peers targeting industries of similar market size such as fintech, health, and mobility.

 

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Europe is emerging more and more as a key geography for insurtech innovation

Europe posted its second best quarter ever in Q1 2022, with $884M in funding.

 

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Europe is now closing the gap with the US, which saw the strongest pullback. Asia’s growth has been flat, while Latam is starting to emerge

 

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Quotes

Yoram Wijngaarde, CEO & founder of Dealroom.co said: “Reports of ‘insurtech death’ have been greatly exaggerated. The funding environment has definitely changed from last year, but we see this as a rationalisation, not a fallback. There are strong signals that insurtech is here to stay and thrive, especially in Europe.”

Javier Santiso, CEO & General Partner, Mundi Ventures said: “The funding environment has cooled off from the 2021 euphoria, but the industry still offers huge opportunities and is waiting for much disruption. We have seen a strong correction in public market valuations and some degree of pullback also in the private market. But in the long term, insurance is still a huge market with very low investment compared to fintech and health.”

Lluis Viñas, Investment Director, Mundi Ventures said: “For generalist investors 2021 was a rocket year, and only felt the harsh correction later in 2022 after inflation, raising interests and political instability struck… The insurtech vertical however, already saw a massive correction in its listed companies since the beginning of 2021 and specially after August 2021…way before general market conditions changed all throughout the tech stocks. A closer look reveals some flaws and weaknesses on how transformational was the proposition of the first listed insurtechs and how the market valued them. Despite past performances of listed insurtechs and current market conditions, the insurance industry is a trillion USD market still waiting for massive disruption…and this transformation will be led by stellar teams with innovative models/products/technologies; hence the fundamental drivers of innovation and transformation will remain strong given the massive market and opportunity we are facing.”

Tjeerd Bosklopper, CEO of NL Non-life, Banking & Technology and member of the Management Board, NN Group said: “At NN Group, sustainability is intrinsically and strategically embedded in our initiatives. We are committed to help our clients and the real economy in the net-zero transition. For instance, we proactively joined the Net-Zero Insurance Alliance (NZIA) to develop a benchmark for setting goals on emission reductions.”

Joan Cusco, Global Head of Transformation, MAPFRE said: “We are still thrilled by the momentum of InsurTech enablers, which is still increasing, as opposed to the listed disrupters, which have not fared so well. They enable us to tackle any strategic challenge we may have, either becoming more tangible through high value services or helping us ‘disappear’ into other products and services becoming transparent, or ultra-embedded for our clients.”

Jeroen Meijers, Head of Strategic Transformation Office, NN Group said: “Everything in NN Group’s purpose starts and ends with customers: we help people care for what matters most to them. Technological advancements and new business models may be uncertain, but what is certain is our commitment towards customers.”

John Shewell, Director of Global Communications & Public Affairs, wefox said: “We embraced the human agent and built technology to make them more productive and improve the customer experience. This is the ‘wefox model’.”
Luis Pino, CEO & Founder, Agentero said: “The vast majority of insurance goes through agents and agent distribution has a better return on ad spend than any other channel. At Agentero we help independent agents with market access and a tech platform and our long term goal is to expand to become ‘the operative system of the insurance agency’.”

Rob Schimek, Group Chief Executive Officer, bolttech said: “Our vision is to connect people with more ways to protect the things they value. Our entire business is built around facilitating a technology-enabled ecosystem that connects insurers, distributors, and customers, ultimately providing the end customer with convenient access, more choice, and a better insurance experience. Embedded insurance has been picking up pace globally and it isn’t hard to see why.
It offers a winning scenario for all participants. We believe we can help with the insurance and tech expertise and capabilities required to support our distribution partners.”

Moritz Weggenmann, Team lead Strategy & Investments, ELEMENT insurance said: “At ELEMENT insurance, we are committed to fulfilling the highest standards across ESG, faster than anybody else in our sector. We have already offset all of our carbon emissions since inception and are ahead of plan in our commitment to net zero in underwriting and asset management.”

Eyhab Aejaz, Co-Founder and CEO, Breach insurance said: “The launch of Crypto Shield really opened the eyes of a lot of players in the market, seeing the first fully-regulated retail product in the sector. We are now seeing more interest from reinsurers. while we still see insurers reluctant to enter the space. Brokers have also started to have a greater focus on the segment, but the need for more, dedicated expertise for the space remains an opportunity.”

Peter Ohnemus, President & CEO, dacadoo said: “If you can measure and predict it, you can prevent it. That’s why we created our Health Score for digital health engagement and health risk quantification.”

Eduardo della Maggiora, Founder & CEO, Betterfly said: “At Betterfly we are committed to impacting the lives of 100 million families by 2025, by protecting them financially, motivating them to live healthier lives, and allowing them to connect to social and environmental causes. Our vision is to create a world in which every person is financially protected and empowered to live their best life.”

Roberto Valdes, CEO, Cuideo said: “We are working to ensure seniors are cared for by professional caregivers fully regulated. There are 2 pain points currently in the senior care market: we still have 20-30% of gray market (non-professional workers taking care of seniors) and the service providers at home care are very atomized and the service level is very irregular. Cuideo has the opportunity to standardise the service level.”

 

About Dealroom.co

Dealroom.co is the foremost data provider on startup, early-stage and growth company ecosystems in Europe and around the globe. Founded in Amsterdam in 2013, Dealroom now works with many of the world’s most prominent investors, entrepreneurs and government organizations to provide transparency, analysis and insights on venture capital activity.

About Mundi Ventures

Alma Mundi Insurtech is a €450M Venture Capital fund managed by Mundi Ventures that invests in the leading Insurtech innovation, with a clear, but not limited, European focus. The Alma Mundi Insurtech Fund has built a truly unique value proposition for Insurtech startups: it is indeed a fully independent VC Fund, however invested by several International Insurers: namely MAPFRE, NN Group, Mutualidad Abogacía, among other international insurers, mutuality funds, and strategic financial investors from Spain, Switzerland, Middle East, and Luxembourg.

About MAPFRE

MAPFRE is a global insurance company. It is the benchmark insurer in the Spanish market and the largest Spanish multinational insurance group in the world. MAPFRE is committed to boosting customer-centered digital transformation, via MAPFRE Open Innovation (MOi). and creating a positive impact on the business and society. Since its inception, more than 1.6million customers have benefited from solutions originating from this model. Please, click here for more information about MOi.

About NN Group

NN Group is an international financial services company. NN Group is active in 11 countries, with a strong presence in a number of European countries and Japan. With all its employees, the Group provides retirement services, pensions, insurance, banking and investments to approximately 18 million customers. NN Group includes Nationale-Nederlanden, NN, ABNAMRO Insurance, Movir, AZL, BeFrank, OHRA and Woonnu. NN Group is listed on Euronext Amsterdam (NN).