State of Insurtech Q2’23 Report
State ofInsurtech Global | Q2 2023 Global data and analysis on dealmaking, funding,and exits by private market insurtech companies 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 trial Platform Connect Get introductions to the right technologyproducts, services, and partners withone click. No research. No hassle. 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 here 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 Wildfires are causing insurersto leave markets. Can wildfirerisk analytics reverse thistrend? Insurtech 50: The mostpromising insurtech startups of2023 Our Most PopularResearch onInsurtech 3 applications of generative AIin insurance Which insurtech companieshave the highest valuation peremployee? These 75 embedded insurancecompanies are transformingdigital distribution How are Aon, MAPFRE, andTokioMarine Holdings usingadvanced analytics to lowerthe cost of P&C claims? Insurance distributionplatforms are taking off —here’s how the market isevolving TLDRState of Insurtech Your rundown oninsurtech in Q2’23 $0.9B 45% 39% 0 1 Mega-round dealtotaling $150M. Insurtech funding.Down 36% QoQ. Growth in insurtechM&A activity QoQ. VC deal share.Highest in 2+ years. New unicorns forthe second straightquarter. Venture capital investorsinked over a third ofinsurtech deals (39%) thisquarter — their highestshare since Q1’21. VC dealshare had waned last year,when it represented lessthan a third of total deals. After 2 quarters of decline,insurtech M&A exitsrebounded to 16 deals, up45% QoQ. Insurtech startups sawfunding decline for the 2ndstraight quarter, reachingjust $0.9B across 97 dealsin Q2’23. Mega-rounds have becomeincreasingly scarce, withAccelerant’s $150M SeriesB as the lone $100M+round this quarter. While new insurtechunicorns (private startupswith $1B+ valuations)emerged consistentlyduring 2021’s insurtechfunding boom, there havebeen no new insurtechunicorns in 2023 so far. A number of these M&Adeals went to high-profile,consumer-facing startupslike Policygenius (acquiredby Zinnia), Luko (acquiredby Admiral Group), and ByMiles (acquired by DirectLine Group). This is the first time sinceQ2’18 that quarterlyinsurtech funding wasbelow $1B, while dealshaven’t slipped below 100since Q1’17. Q2’23’s dropin funding, however, wasless severe than fintech,where it fell 48% QoQ. At the peak of insurtechfunding in 2021, thenumber of mega-roundstypically exceeded 10 perquarter and made up abouthalf of total funding. Incontrast, the last 3quarters each saw 1 mega-round, representing around15% of funding. The growth this quarterdoesn’t necessarily meanVCs are bullish on thesector — it could suggestnon-VC investors (like PEfirms and corporations) arepulling back. This mirrors a widerphenomenon across tech.Fintech, for instance, hasonly seen 4 new unicornsemerge in 2023. See the data→ See the data→ See the data→ See the data→ See the data→ ContentsState of Insurtech Investment Trends11Unicorns33Exit Trends38Investors41 Collection Spotlights45 Life & Health Insurance46P&C Insurance55 Geographic Trends64 US65Asia71Europe77 Global Trends Investment Trends State of Insurtech| Global Trends | Investment Trends Funding hits $2.3B in H1’23, on pace for insurtech’s lowest year since 2018 State of Insurtech| Global Trends | Investment Trends Quarterly funding falls 36% to its lowest level since Q2’18 State of Insurtech| Global Trends | Investment Trends The US leads in quarterly funding and deals, followed by Europe and Asia State of Insurtech| Global Trends | Investment Trends US and Europe see a decline in deal share as Asia increases by 3 points State of Insurtech| Global Trends | Investment Trends VC investors see the largest growth in deal share QoQ, up 7 points State of Insurtech| Global Trends | Investment Trends Average insurtech deal size slides 20%, median deal size is up 8% State of Insurtech| Global Trends | Investment Trends Asia’s median deal size increases 26% in 2023 so far State of Insurtech| Global Trends | Investment Trends Private equity median deal