韦莱韬悦-2020年Q2保险科技简报（英文）-2020.8-41页_10mb

Quarterly InsurTech Briefing Q2 2020 Summary

Core Content

The Quarterly InsurTech Briefing Q2 2020 provides an in-depth analysis of the global InsurTech landscape, focusing specifically on property insurance and its intersection with technology. The briefing outlines the short-, medium- and long-term impacts of COVID-19 on the industry, emphasizing how the crisis has accelerated digital transformation and redefined the role of InsurTech.

Main Points

1. Impact of the Pandemic on InsurTech

• The pandemic has caused a dual effect on the industry: pause mode due to operational disruptions and fast-forward mode due to rapid digital adoption.
• Digital transformation has become critical, with many firms shifting to remote and digital operations.
• InsurTech's role is now more important than ever, as traditional operations are no longer viable without technological support.
• Lemonade becomes the first public U.S. InsurTech unicorn, signaling a shift in investor interest and market perception.

2. Global InsurTech Funding Trends

• Global funding for InsurTech in Q2 2020 increased by 71% compared to Q1, reaching $1.56 billion across 74 deals.
• L&H (Life & Health) funding rose to 32%, up 17 percentage points, driven by telemedicine and life insurance demand.
• Seed/Angel deals declined, accounting for 42% of deal count (a record low), while Series C deals increased to 11%.
• Mega-deals played a significant role, including:
  • Duck Creek: $230 million
  • Oscar Health: $225 million
  • Pie Insurance: $127 million
  • States Title: $123 million

3. InsurTech and Carrier Acquisitions

• Direct insurers are increasingly acquiring InsurTech firms to expand capabilities and geographies.
• Examples include:
  • Hippo's acquisition of Spinnaker Insurance Company
  • Buckle's acquisition of Gateway Insurance Co.
  • Pie Insurance's $127 million round includes $100 million for purchasing licensed insurance companies.

4. Geographic Expansion

• Deal activity expanded to 25 countries in Q2, a record since the briefing began.
• New geographies such as Taiwan, Croatia, and Hungary saw increased interest.
• Investors are likely to diversify risk by focusing on newer regions as top markets recover.

5. Key InsurTech Firms Highlighted

• Openly: A managing general agent offering personal homeowners and landlord products.
• handddii: A digital platform that automates property insurance claims from FNOL to finalization.
• Arturo: Provides structured data observations and predictions for commercial and residential properties.
• Hometree: Offers home cover contracts to homeowners and landlords.
• Insurdata: Provides real-time, high-resolution, risk-specific exposure data.

6. Investor Perspectives

• Kyle Beatty of American Family Ventures discusses the investment focus and future of property InsurTech.
• He highlights that InsurTech is not just about technology but also about cultural shifts in the industry.
• The term InsurTech may evolve into InsurTechs, distinguishing between cultural transformation and individual firms.

7. Thought Leadership and Industry Insights

• Desmond Carroll from Willis Re North America discusses the institutional hurdles in property catastrophe insurance.
• He notes that InsurTechs face significant regulatory and market barriers to enter this niche.

8. Technology Spotlight

• Structure Insurance Score (SIS) is a Willis Towers Watson and e2value partnership that helps property insurers determine replacement costs.
• SIS captures unique property characteristics to assess risk and indemnification more accurately.

9. Transaction Spotlight

• States Title raised $123 million in a Series C funding round.
• Hippo acquired Spinnaker Insurance Company, enhancing its smart insurance coverage capabilities.

10. Long-Term Outlook

• Technology will be crucial in shaping the future of the (re)insurance industry.
• The Gartner Hype Cycle suggests that we may be at the peak of expectations, with a trough of disillusionment likely to follow.
• Investor expectations will shift from VC and CVC to public interest capital, which may be more demanding and financially stringent.
• The future of InsurTech will focus more on realistic technology integration rather than chasing unicorns.

Key Information

• Property insurance is the second-most dominant line of insurance globally.
• The rise of IoT and smart homes is transforming risk assessment and property management.
• Cumulative investment in property InsurTech since 2012 is $2.8 billion, with auto InsurTech receiving more funding.
• Renters-focused InsurTechs dominate in funding but lag in deal count.
• Lemonade is a key player in the renters and homeowners space, with a Series B round of $50 million.
• The future of InsurTech will likely be defined by realistic technology integration and sustainable business models.

Conclusion

The Q2 2020 briefing underscores the accelerated digital transformation in the property insurance sector, driven by the pandemic and the increased reliance on technology. While short-term challenges persist, the medium- and long-term outlook is optimistic, with a greater focus on innovation, realistic valuation, and technology-driven risk mitigation.