State of Insurtech Q3’23 Report

State ofInsurtech Global | Q3 2023 Global data and analysis on dealmaking, funding, andexits by private marketinsurtechcompanies Guess Less.Win More. CB Insights helps the world’s leadingcompanies make smarter technologydecisions with data, not opinion. Our Technology Insights Platform providescompanies with comprehensive data, expertinsights, and work management tools thatenable them to discover, understand, andmake technology decisions. ▮▮▮▮IIISign up for a free trialSign up for a free trial Platform Connect Get introductions to the right technologyproducts, services, and partners withone click. No research. No hassle. Request a demo Make your brand moresearchable. Findable.Buyable.Partnerable.Investable. Complete a free Analyst Briefing Survey*and get in front of enterprise tech buyers,M&A teams, and investors. *Survey takers have increased their lead generation 3x on average. ▮▮▮▮▮IIIApply hereSign up for a free trial With CB Insights, Brown & Brown Insurance cantrack hundreds of startupsall in one place. The richdatasets and real-time updates enable us to movequickly and confidently. Jimmy SaldanaFormer Director of Strategic Innovation,Brown & Brown Insurance View success story→ Dig Deeper. CB Insights clients can find and trackcompanies using our analyst-curatedExpert Collections. Wealth TechInsurtechCapital Markets Tech PaymentsBankingDigital Lending Insurtech 50: Themostpromising insurtechstartups of2023 Wildfires are causinginsurersto leave markets. Canwildfirerisk analytics reversethistrend? Our Most PopularResearch on 3 applications of generativeAIin insurance Which insurtechcompanieshave the highestvaluation peremployee? Insurtech These 75 embeddedinsurancecompanies aretransformingdigitaldistribution How are Aon, MAPFRE,andTokioMarine Holdingsusingadvanced analytics tolowerthe cost of P&C claims? Insurancedistributionplatforms aretaking off—here’s how themarket isevolving The life & health insurance riskassessment market map TLDRState of Insurtech Your rundown oninsurtechin Q3’23 $1.1B 29% -28% 181% 1Insurtech unicornbirth. Decline ininsurtechM&A exitsQoQ. QoQgrowth in P&Cinsurance funding. Q3’23insurtechfunding. Up 22%QoQ. QoQjump in Asiainsurtechfunding. Following a historically lowquarter, funding toinsurtechs in Asiarebounded significantly,rising 181% to reach $160Min Q3’23. Despite a spike in Q2’23,insurtechM&A exits startedto fall yet again in Q3’23,dropping by 28%QoQ. For the first time sinceQ4’22, a newinsurtechunicorn (private companywith a $1B+ valuation) wasminted: home insurancestartup Kin. P&C insurance funding grew29%QoQto hit $0.9B across90 deals in Q3’23. Insurtech funding grew 22%QoQto hit $1.1B across 119deals in Q3’23. Life and health insurance,on the other hand, sawfunding remain flat at $0.2BQoQ. Tech companies drovesome of Q3’23’s notableM&A deals. For example,Acturisacquired digitalinsurance forms providerBroker Buddha and Zillowacquired title insuranceplatform Spruce. However, given thatquarterly funding dropped toits lowest level since 2018in Q2’23, Q3’23’s fundingtotal was still low relative tohistorical levels. As a result,annual insurtech funding ison track to hit just $4.5B in2023—the lowest figuresince 2017. The largest deals in theregion were raised by India-based agriculture insurtechLeads Connect ($63M),India-based auto insurtechRenewBuy ($40M), andHong Kong-based life andhealth insurtechBowtie($35M). However,insurtechalso losta unicorn in Q3’23:Vesttoo,which filed for bankruptcyfollowing fraud allegations. Notably, Q3’23 saw just 2insurtechmega-rounds, andboth went to P&Cinsurtechs: home insurerOpenly and cyber insurancestartup Resilience. That said, the total numberofinsurtechunicorns camein at 39 for the sixthconsecutive quarter inQ3’23. See the data→ See the data→ See the data→ See the data→ See the data→ ContentsState of Insurtech Global Trends10 Investment Trends11Unicorns34Exit Trends39Investors42 Collection Spotlights44 Life & Health Insurance45P&C Insurance54 Geographic Trends63 US64Silicon Valley70Asia74Europe80 Global Trends Investment Trends State of Insurtech|Global Trends|Investment Trends State of Insurtech|Global Trends|Investment Trends Funding jumps 22%QoQin Q3’23, deals are up 20% State of Insurtech|Global Trends|Investment Trends The US leads in funding and deals in Q3’23 State of Insurtech|Global Trends|Investment Trends The US accounts for more than 50% of insurtech deals in Q3’23 State of Insurtech|Global Trends|Investment Trends VC investors lead in quarterly deal share State of Insurtech|Global Trends|Investment Trends Average deal size is down 27% in 2023 YTD, median deal size is down 2% State of Insurtech|Global Trends|Investment Trends Asia sees the largest increase in median deal size in 2023 YTD State of Insurtech|Global Trends|Investment Trends Median deal size falls for all investor categories State of Insurtech|Global Trends|Investment Trends Insu