Global investment in insurtech companies broke records in nearly every category in 2021, including total funds invested, deals made, international participation, "unicorn" (companies valued at $1 billion or more) creation, number of companies that went public and the largest single deal, according to Gallagher Re's inaugural "Global InsurTech Report" for the first quarter of 2022.
The April 29 report included three reasons for the major growth: Insurtech is a broad definition and many deals are included, technology is what will keep the insurance industry relevant and cost-efficient, and it's a very promising market for investors.
Nine key takeaways:
- Total amount invested in 2021 was $15.8 billion, more than the amount invested in 2019 and 2020 combined.
- $9.4 billion went into property and casualty insurtechs and $6.4 billion was invested into life and health firms.
- In 2021, 564 deals took place. Most of the funds raised were invested into businesses during their series C to E+ rounds.
- The largest single deal was Integrity Marketing Group, which raised $1.2 billion in December.
- The U.S. saw more investment and total deals than the next 60 countries combined.
- First quarter of 2022:
- Overall funding was down in the first quarter, though total funding was $2.2 billion.
- Total deal count saw almost no quarter-over-quarter change, with 143 deals recorded globally. Of those, 37 involved life and health firms.
- A total of 31 countries participated in insurtech investment in the first quarter of 2022, but the U.S. had a 47 percent share of all deals.
- Overall funding was down in the first quarter, though total funding was $2.2 billion.