2023-10-31-dealroom.co-2023年全球保险科技报告_49页_16mb

The State of Global Insurtech 2023 Summary

Core Content

The State of Global Insurtech 2023 report provides an overview of the current state of the insurtech industry, highlighting key trends, investment dynamics, and market challenges. It outlines the impact of the global financial market downturn on insurtech funding and valuations, emphasizing the shift from growth-at-all-cost to operational efficiency and profitability.

Main Viewpoints

• Funding Trends:

  • VC investment in insurtech pulled back over 50% in H1 2023 compared to H1 2022, and nearly 4x from peak.
  • Insurtech funding is now back to 2018-2019 levels.
  • Late-stage funding has seen the most decline, down over 60% from peak, while early-stage funding has stabilized with a 29% drop from peak.
  • Public insurtech valuations have plummeted, but some leading private players have maintained or increased their valuations.

• Market Dynamics:

  • The insurance industry is still a massively underfunded market, especially in life insurance.
  • The P&C (Property & Casualty) segment continues to attract over 60% of insurtech VC funding, while life insurance is underinvested.
  • Distribution remains the most funded area, but embedded insurance and hybrid distribution are opening new avenues.
  • AI is already used in insurance, but GenAI presents new opportunities, though its impact is still being understood.

• Valuation and Performance:

  • Public insurtech valuations have dropped significantly, with some companies losing their unicorn status.
  • Private insurtechs are still growing, albeit at a slower pace, with the combined enterprise value of global insurtech companies reaching $281B, with 85% from private firms.
  • Leading private insurtechs like Wefox, Bolttech, and VESTTOO have either maintained or increased their valuations in recent months.

• M&A Activity:

  • M&A activity in the insurtech space is returning to pre-pandemic levels.
  • Private equity (PE) and leading insurtechs are active acquirers, while traditional insurers are less involved.
  • Insurtechs are using their capital to make acquisitions, which is a key trend.

• Geographical Trends:

  • The US remains the leading geography for insurtech investments.
  • Asia is the fastest-growing region, with the share of funding outside of North America, Europe, and China reaching 31% in 2023.
  • In Europe, the UK, Germany, and France attract over 4/5 of the funding, but Italy, Netherlands, and Estonia are showing strong early-stage growth.
  • Latin America (Latam) has started to emerge as a significant player, with over 60 VC-backed startups and a combined enterprise value of $4.4B, up 5x since 2020.

Key Information

• Mundi Ventures is a European early-stage VC firm with €500M AUM investing in B2B insurtech companies. It has invested in 6 unicorns, including Wefox, Bolttech, and Betterfly.
• MAPFRE is a leading Spanish insurer, committed to digital transformation through MAPFRE Open Innovation (MOi). It has impacted over 1.6 million customers with its innovation model.
• NN Group is an international financial services company active in 11 countries, offering retirement services, pensions, insurance, banking, and investments to 18 million customers.
• Generali is one of the largest global insurance and asset management providers, with a focus on sustainability, innovation, and customer-centric solutions.
• Dealroom.co is a global startup and venture capital intelligence platform that has collaborated with Mundi Ventures, MAPFRE, and NN Group to produce this report.

Key Takeaways

• Market Rationalization: The insurtech industry has seen a significant market rationalization, with public valuations plummeting and private valuations stabilizing.
• Opportunities for Innovation: Despite the downturn, there are still opportunities for innovation in the insurance industry, especially in operational efficiency, embedded insurance, and digital transformation.
• Shift in Focus: The industry is moving away from growth-at-all-cost to a focus on profitability, deep insurance expertise, and technology integration.
• Investor Perspective: Insurtech innovation is still seen as a beacon of opportunity for investors, especially as technology-focused private equity funds have $300B in dry powder.
• Geographical Shifts: While the US remains dominant, Asia is growing rapidly, and Latam is emerging as a key market for insurtech.

Key Insurtech Processes

• Distribution: Still the most funded area, though challenger and MGAs have seen the lowest share of funding.
• Product & Underwriting: These areas are still underfunded, but are critical for innovation.
• Claims & Fraud Management: A major focus for AI and automation.
• Payments: Key to the value chain, though not as heavily funded.
• Admin Tech Platforms: Have attracted a few big rounds of funding.

M&A Commentary

• Market Consolidation: A lot of M&A activity is happening, especially among PE firms and insurtechs, as they look to expand or consolidate.
• Insurer Acquisitions: While some insurers are hesitant, others are seeing this as an opportunity to acquire unique technologies and talents.
• Fire Sales: Some insurtechs may face bankruptcy or fire sales due to cash shortages and inflated valuations from previous rounds.

Conclusion

The insurtech industry is undergoing a transformation, with a focus on operational efficiency, profitability, and digital innovation. While the market has seen a downturn, it is expected to resurge with increased liquidity and strategic acquisitions. The industry is becoming more global, with Asia and Latam showing strong growth. The future of insurance is moving towards ecosystems, risk prevention, and ancillary services, driven by technology and customer-centric approaches.