These companies have been designed to improve the entire value chain of insurance companies.
Volume of investments in insurtech
Investments in insurtech [4] are colossal. They have risen sharply in recent years, from 130 million USD in 2011 to more than 6.3 billion USD in 2019 with 314 transactions reported.
Despite a year of global economic crisis due to Covid, the number of transactions reported at the end of the third quarter of 2020, amounts to 275 transactions for an investment amounting to 5 billion USD.
Read also | Insurance in the digital age [5]
Number of transactions and volume of investments in insurtech: 2012-Q3 2020
Transactions breakdown per country
By the third quarter of 2020, nearly 60% of the transactions were concluded outside the United States, thus reinforcing a trend already observed previously.
Investments in insurtech are increasingly scattered around the world, with the number of transactions having increased by 50% in the UK and by almost 45% in the US. In China, however, their number declined by 38% in the first quarter of 2019.
Investment breakdown per sector
Most of the investments are made in non-life insurance, particularly in the health and motor classes of business. Although these investments are mainly in marketing and distribution, they tend to grow in the areas of analysis and underwriting.
The insurtech are gradually invading all fields of insurance.
Non life insurtech transactions per class of investor
Health and life insurtech transactions per class of investor