Interest in InsurTech dwindles in Q1 2017, as total investments declined

Global InsurTech investments slumped to a five-quarter low in the opening quarter of the year.

Total funding to InsurTech companies declined by 71.7% to $178.5m in Q1 2017 compared to the first quarter of 2016. This continued the trend from last year where funding to the sector has been continually declining from the high of $630.4m raised across 63 deals reached in Q1 2016. However, this can be attributed to the reduced number of larger deals. Transactions over $100m comprised 63.5% of total investments in Q1 last year, but InsurTech companies have failed to close a deal of such magnitude in the last two quarters. If we account for that effect, total funding to the sector only declined by 22.5% Q1-on-Q1.

European companies attracted the most investments for the first time in Q1

  • The share of InsurTech deals in North America has been progressively decreasing since 2014, falling to only 37.7% in Q1 2017. The first quarter of the year also saw the overall amount invested in North American companies fall below the amount invested in their European peers for the first time, with $72.2m and $89.9m invested, respectively.
  • Europe saw 22 InsurTech deals closed in the opening quarter of the year, which represented almost half of the deals completed in the region last year. This boosted Europe’s share of global InsurTech deals to 41.5% in Q1.
  • Other regions saw a jump in their share of investments in Q1 2017, receiving 15.1% of investments. Notably, there were two InsurTech deals closed in Israel during Q1. One of these was received by getmelns which picked up a $1m investment from Jerusalem Venture Partners in the first InsurTech Israel competition.

Three of the top 5 InsurTech deals in Q1 2017 went to European companies

  • The top five InsurTech deals raised over $100m in the first quarter of the year.
  • Singapore-based insurance platform CXA Group received the largest funding during the quarter, raising $25m in its Series B round in February.
  • UK-based CompareEuropeGroup picked up the largest funding round in Europe, securing €20m for its insurance comparison platform.

Early-stage investors lead the way in InsurTech investment

  • 500 Startups made the most investments in InsurTech over the last five quarters. In Q1 2017 the firm committed capital to companies BenRevo, Cyberwrite and Regard as they were part of the accelerators’ programme that graduated in February.
  • Accelerators took the top four spots, with VC firm New Enterprise Associates completing the top four.
  • Eight of the top ten investors were based in the United States with the other two, Protechting and InsurTech.vc, based in Portugal and Germany, respectively.

The data for this research was taken from the FinTech Global database. More in-depth data and analytics on investments and companies in InsurTech as well as across all FinTech sectors and regions around the world are available to subscribers of FinTech Global. ©2017 FinTech Global

 

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