深度-Dealroom-2021年欧洲保险科技报告（英文）-2021.6-50页_10mb

The State of European Insurtech

Core Content

The document provides an in-depth analysis of the European insurtech market, highlighting its growth, investment trends, and the challenges and opportunities it presents. It outlines the current state of the insurance industry, the role of insurtech in transforming it, and the implications of new technologies and market dynamics.

Main Points

• Insurance Industry Overview:

  • The global insurance industry is valued at $6 trillion and is under pressure to evolve due to its fragmented value chain and limited digitalization.
  • Insurtech is seen as a key driver of change, enabling more accurate risk assessment, fraud prevention, and improved customer experience through AI, IoT, and SaaS.

• European Insurtech Landscape:

  • European insurtech is growing rapidly and is expected to support the emergence of multi-decacorn companies.
  • The market is dominated by the UK, Germany, and France, which have attracted over 85% of the funding since 2016.
  • B2B SaaS solutions are gaining traction, accounting for 50% of 2021 investment rounds, although they only receive 20% of total funding.

• Investment Trends:

  • The Alma Mundi Insurtech Fund, managed by Mundi Ventures, is a 100M€ VC fund with a European focus, backed by international insurers such as Mapfre and Nationale Nederlanden.
  • Strategic investors are increasingly participating in insurtech rounds, with nearly 40% of 2020 and 2021 rounds involving such investors.
  • The fund leverages its LPs network, commercial activities, and a global network of C-level executives (Club Mundi) to add value to its portfolio companies.

• Key Value Chain Innovations:

  • Distribution: Historically the most funded area, but now full-stack insurtechs are gaining more attention.
  • Underwriting and Risk Management: Enhanced through AI and data analytics, leading to better risk assessment and fraud detection.
  • Claim Management: Improved with the integration of computer vision, IoT, and workflow management solutions.
  • SaaS for Product & Pricing: Emerging as a critical component for insurers to optimize offerings and pricing models.

• Insurtech Business Models:

  • MGA (Managing General Agent): Agile and flexible, but dependent on insurance carriers.
  • Full-Stack Insurtech: Companies like Wefox and Lemonade are expanding beyond distribution to include product development and technology solutions.
  • B2B2C Models: These models allow for more control over the product and pricing, while also enabling better customer engagement and retention.

• Emerging Risks and Trends:

  • Embedded Insurance: Expected to grow significantly, with insurance products being integrated into platforms, marketplaces, and ecosystems.
  • Global Risks: Environmental challenges, climate change, and extreme weather are among the most concerning global risks, with climate-related losses largely uninsured.
  • Insurance Evolution: The industry is shifting from pure risk transfer to risk management and prevention, driven by data and digital transformation.

Key Information

• Market Growth: The European insurtech market has reached a combined enterprise value of €23 billion.
• VC Investment Trends: Insurtech has seen a significant increase in VC investment, growing faster than other sectors, especially in 2021.
• Strategic Investors: Nearly 40% of insurtech rounds in 2020 and 2021 included strategic investors, indicating growing credibility and interest in the sector.
• Exit Performance: While the US has seen a wave of exits, European insurtech companies have not yet achieved the same level of success, but the trend is expected to change.
• Digitalization Impact: The pandemic has accelerated digital transformation in the insurance industry, with a focus on virtual meetings, digital policies, and cloud-based solutions.
• Future Outlook: The 2015–2016 cohort of European insurtech startups is expected to lead the way in major exits in the coming years. The 2030 vision for companies like Wefox includes a shift toward direct premium and embedded platforms.

Notable Companies

• Wefox: Evolved from a B2C broker to a full-stack insurtech, with plans to expand into embedded insurance.
• ELEMENT: A SaaS provider for insurers, focusing on underwriting and distribution.
• Synthesized: Offers a global network of C-level executives and data analytics solutions.
• Urban Jungle: Transitioned from a broker to an MGA, emphasizing product and pricing control.
• Koa Health: A health insurance startup with a focus on digital innovation and customer-centric solutions.
• Finsurdata: A data provider for the insurance industry, supporting risk analysis and underwriting.

Challenges and Opportunities

• Challenges:

  • High regulatory barriers and capital intensity.
  • Legacy systems and poor digital integration capabilities in traditional insurers.
  • Dependency on insurance carriers for MGAs.
  • The need for more affordable and scalable insurance products for underserved populations.

• Opportunities:

  • Digital transformation and the adoption of AI, IoT, and cloud-based solutions.
  • Embedded insurance models that integrate insurance into platforms and ecosystems.
  • Increasing consumer demand for personalized and preventive insurance services.
  • Strategic partnerships and investment from traditional insurers and financial institutions.

Conclusion

The European insurtech market is at a pivotal stage, driven by technological advancements, changing consumer expectations, and the need for more efficient and relevant insurance solutions. While challenges remain, the sector is poised for significant growth and transformation, with the potential to support the emergence of large-scale companies and reshape the insurance industry as a whole.