Insurers waking from their slumber, or still hitting snooze?

To read the full article on knect365.com please click here.

There’s no doubt about it – insurtech is now a thing. A serious proposition, and not just the buzz word that many in the industry considered it to be 2 or 3 years ago. Whilst there is certainty a growing interest and urgency within the traditional market about how best to harness the digital revolution, there remains a lack of understanding and practical applications. But we are now entering the time when it’s stand and be counted, or fade into the annals of history.

Overall trends

The last six months has seen the level of investment into the sector increase again, along with the size of the deals. The previous quarter recorded a 33% increase in Series B investment rounds and a 100% increase in Series B investment rounds and a 100% increase in Series C.

Whilst personal lines may still represent the main playground for insurtechs, it is becoming an increasingly saturated space. Although products with a Property & Casualty focus continue to attract the greatest interest from investors, the Life & Health space is beginning to share centre stage. Unsurprising, perhaps, when you consider that less than 30% of the UK population holds life cover.

Platform plays also remain a popular area for insurtechs (e.g. Kasko, Digital Insurance Group, Instanda, and Artificial Labs), as insurers struggle to build and launch digital products utilising worn legacy systems. But this, too, is becoming a crowded space.