What were the biggest deals in InsurTech in 2021?

2021 was another year of growth for the InsurTech industry, with funding setting an annual record of $9.1bn only nine months into the year. But what were the biggest deals?

Despite the ongoing pandemic, the InsurTech sector continued its rapid growth in 2021. FinTech Global reported that InsurTech companies raised $9.1bn across 364 deals in the first three quarters of the year. The staggering investment growth was driven by high-value deals over $100m, but it is important to note that the sector also saw well over 250 deals under $50m completed.

These are the biggest ten deals of the year.

German unicorn Wefox nets $650m

Considered the biggest InsurTech in Europe, Digital insurance startup Wefox raised $650m in a landslide Series C round in June, the largest round of its kind to date for an InsurTech.

The round was led by Target Global, with participation from existing investors. Launched in 2015, Wefox sells insurance through intermediaries and not directly to customers. Wefox has experienced significant growth in recent years. In 2020 the company saw its revenue increase to $143m, doubling its revenue from 2019. Wefox also partnered with Akur8 to help strengthen its pricing process and bolster its presence in Germany.

The reason for its growth? This is down to its strategy of offering digital tools that enable insurance agents to streamline and automate labour-intensive processes, Wefox said. Agents sell nine out of every ten policies in Europe, leaving direct-to-consumer competitors like Lemonade fighting for a smaller piece of the market, the company added.

Hippo exceeds $1bn valuation after $550m fundraise

Hippo, an online supplier of home insurance policies, first cemented its unicorn status in 2020 after raising $150m in Series E funding.

The US company went on to raise $550m in a post IPO equity round in 2021, following its merger with special purpose acquisition company (SPAC) Reinvent Technology Partners Z.

The InsurTech also doubled its underwriting capacity after it entered an issuer carrier relationship with Ally Financial subsidiary and a partnership with Motors Insurance Corporation.

Pet insurer Bought by Many raises $350m

Taking the pet insurance industry by storm, Bought By Many closed its Series D round on $350m, putting its pre-money valuation at $2bn. Through its platform, users can receive instant quotes for pet insurance for cats and dogs, with up to £15,000 of lifetime vet fee cover available.

According to Carolina Brochado EQT Growth partner, which supplied the capital, Bought By Many’s digital-first approach is “unrivalled in pet insurance, a market that is large and under-penetrated in most European countries and the US.”

Cyber insurer Coalition scores $205m round 

Cyber insurance and security firm Coalition saw its valuation grow to $3.5bn after securing $205m in Series E funding. The round was co-led by ,and Whale Rock Capital.

The company also went on to acquire commercial insurance-focused broker platform Attune.

Coalition pointed to data from its HI 2021 Cyber Insurance Claims Report which revealed that its policyholders experience less than one-third the claim frequency compared to other cyber insurance carriers. This is particularly poignant given the surge in cyber incidents during 2021.

Indian InsurTech Digit Insurance collects $200m

Digit Insurance, a general insurance company offering health, car, bike, and travel insurance, raised $200m with existing investor Faering Capital and new investors like Sequoia Capital India, IIFL Alternate Asset Managers amongst others.

Digit’s funding round was considered one of the largest in India’s general insurance industry. The young unicorn began its journey in 2017, achieving unicorn status in just under four years. The company uses technology to simplify processes for their customers, like smartphone-enabled self-inspection and audio claims. They are 100% on cloud and have launched several innovative offerings relevant to the ever-emerging needs of customers.

Cyber insurance unicorn At-Bay scores $185m

At-Bay, a cyber insurance platform, closed a Series D round on $185m, which propelled it to unicorn status at a valuation of $1.35bn. Icon Ventures and Lightspeed Venture Partners served as the co-lead investors.

Founded in 2016, At-Bay is a cyber insurance platform that offers policies with up to $10m in limits to businesses and up to $5m in revenue for primary and excess products. The company’s insurance policies protect a range of damages, cyberattacks, crypto jacking, extortion, business interruption, data breaches and reputational harm.

The round was At-Bay’s third funding round in 18 months, after its $34m Series C in late 2020. The company went on to extend the Series D round by a further $20m.

Singapore-based Bolttech raises $180m

Also joining the unicorn club was Singapore-based Bolttech, which raised $180m in a round led by private investment firm Activant Capital Group. The company describes itself as “The world’s largest insurance exchange.”

Bolttech’s online platform serves as a matchmaker between insurance companies, allowing them to offer customers products that may not be in their area of specialisation.

New York-headquartered InsurTech Healthcare.com collects $180m

Committed to transforming US consumer’s relationship with healthcare, HealthCare.com raised $130m in senior non-convertible preferred funding, alongside more than $50m in Series C preferred equity in a round led by Oaktree Capital Management.

Founded in 2014 and headquartered in New York, HealthCare.com is a digital healthcare platform connecting consumers and service providers with the goal of bringing simplicity and transparency to an industry famous for its complexity and opacity.

US auto insurer DealerPolicy rakes in $110m

Automotive insurance marketplace DealerPolicy pulled in $110m from a Series C funding round led by Goldman Sachs Asset Management, just six months after its $30m Series B round.

DealerPolicy offers a choice-based insurance solution at the point-of-sale at car dealers. Car buyers can view multiple insurance quotes and connect with licensed insurance agents to buy a policy.

The company claims that on average, DealerPolicy Insurance saves consumers who report around $64 per month on automotive insurance.

French household insurer Leocare bags $110m

Raising the same amount of capital as DealerPolicy, Leocare secured $110m in a Series B round led by international fund Eight Roads and Leocare’s previous investors Felix Capital, Ventech and Daphni.

The French InsurTech, which strives to simplify insurance for households, experienced rapid growth in 2021. Looking to this year, the company said it plans to extend beyond France into other European markets, starting with Spain.

Copyright © 2022 FinTech Global

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