2022-06-28-dealroom.co-The_State_of_European_Insurtech_2022_55页_15mb

Summary of The State of European Insurtech 2022

Introduction:
The report highlights ongoing disruptions in the European insurtech sector, noting that while the industry is still early, significant growth and challenges persist. Key themes include funding trends, the roles of major players like Mundi Ventures and MAPFRE, the shift towards prevention and sustainable practices, and emerging areas like embedded insurance, cyber, and senior care.

Market Trends and Funding

• Global insurtech funding cooled by nearly 50% in Q1 2022, with a strong pullback at late stages, but early and medium stages saw record activity, totaling significant capital raised in early 2022.
• European insurtech outperformed other regions, closing the funding gap with the US and reaching its second-best quarter ever in Q1 2022.
• Startups remain heavily underfunded compared to fintech or health peers, despite high growth potential.
• Unicorns slowed generation by 2022, with regions like the US leading; Europe showed emergence, while Asia and Latin America prove less active.

Leading Players and Partnerships

• Mundi Ventures leads the Alma Mundi Insurtech Fund with €100M, backing startups, particularly through collaborations with insurers like MAPFRE and NN Group.
• MAPFRE focuses on digital transformation via Open Innovation, investing in tools to modernize insurance, with strong ESG commitments and partnerships.
• NN Group prioritizes customers through open innovation, venturing into startups and internal development to enhance distribution, using embedded insurance as a key strategy.

Future Outlook and Key Challenges

• Early-stage disruption is underway, but distribution (agent/broker reliance) and underwriting issues hinder widespread change, though D2C strategies show increasing complexity.
• Shifts toward prevention and IoT enable risk management, fostering healthier behaviors and real-time mitigation.
• ESG and climate risks drive new initiatives, with parametric insurance, cyber protection, and geospatial analytics emerging, boosting alliances amid rising net-zero commitments.
• Cyber insurance faces acute challenges like ransomware-driven losses and price hikes, requiring partnerships with cybersecurity experts.
• Crypto insurance is in nascent stages, with first steps taken by insurers.
• The silver economy, focusing on senior care and financial support, shows strong growth, with Euopean seniors expected to reach 130M, presenting a vast market opportunity.

Emerging Opportunities

• Embedded insurance embedded into platforms is growing rapidly, offering lower CAC and higher user relevance for insurers.
• AgeTech startups have raised €1.2B+ since 2016, with focus on day-to-day care, health monitoring, and loneliness management, indicating a maturing sector.

Overall, while funding pressures exist, the insurtech landscape continues to evolve with innovation and strategic investments paving the way for deeper industry transformation.