Global investments in insurtechs reached $ 10.1 billion, an increase of 38% compared to 2020 and marks a new historical recovery and a clear consolidation of the market. In fact, in the last two years alone, insurtechs have received 50% of their total funding.
In terms of the number of deals concluded, there is a slight downward trend compared to 2019, which saw a record 393 deals.
According to Ntt Data’s Insurtech Global Outlook, investment growth is also a reflection of insurance companies’ commitment to the insurtech environment, as the number and amount of investments grew exponentially in 2021. figures represents a 175% jump over the previous year.
In 2021, thanks to the crucial role of vaccinations and the recovery of the economy after the COVID-19 pandemic, the average size of the deals grew to reach $ 41 million, the highest historical average per deal. Investors maintained a clear interest in insurtechs and increased their investments once the recovery after COVID-19 began, with exponential growth from 2020 to 2021.
As far as technology trends are concerned, AI, IoT and predictive analytics have seen an increase in investor interest in recent years and have attracted large investments from major insurance companies, as well as technological and industrial giants. . About 61% of insurance companies are using the IoT, creating new business opportunities, integrating new data sets to improve the current level of risk and risk prevention, monitoring customer behavior and encouraging changes.