Insurtech Funding Roundup, Q4 2020: Insurtech Ends A Tumultuous Year Strongly
Despite the tumult of 2020, the insurtech market ended the year alive and (relatively) well. While funding did decline 6% year over year, the fourth quarter was the second strongest for funding in 2020 and the sixth largest since tracking began in 2010.
The full version of our quarterly insurtech funding roundup report is on the way. In the meantime, here’s a sneak peek at some of the highlights:
- Digital insurers garnered most of investor attention. For the third straight quarter, digital disruptors received the majority of funding, accounting for over 70% of investments in Q4. Unlike the previous two quarters, Q4 funding went to a variety of areas, such as home insurance, digital health insurers, and life insurance disruptors.
- Funding for operational enablers ramped up. While not as buzzworthy as digital insurers, operational enablers (e.g., data analytics providers and IT infrastructure vendors) remained hot among investors, receiving over 20% of funding in Q4. Funding recipients included a no-code enterprise application, a cloud-based automation platform, and a consumer insurance management platform.
- M&A activity reemerged after a quiet six months. There were more acquisitions in Q4 than the first three quarters of 2020 combined. Of the 13 acquisitions during the quarter, nine were of enablers of operational improvement, indicating a common trend among investors. Among them was Carebook’s acquisition of health engagement platform Novus Health and Bold Penguin’s acquisition of AI platform RiskGenius.
There’s no question that the insurance industry will undergo major shifts in the next five to 10 years, and insurtechs will surely play a major role in the transformation.
To learn more about the insurtech market and what it means for your business, look out for the release of the full report. In the meantime, be sure to schedule an inquiry with us or check out our previous quarterly reports:
- Insurtech Funding Roundup, Q3 2020 (accessible blog version here)
- Insurtech Funding Roundup, Q2 2020 (accessible blog version here)
- Insurtech Funding Roundup, Q1 2020 (accessible blog version here)