How AI is enhancing real-time data for investors & Global InsurTech funding halved in H1 YoY

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How AI is enhancing real-time data for investors - Data management is a vital part of the investment management world and new advancements in technology, particularly AI, is helping to transform how investors and portfolio managers can leverage their data.

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Research highlight

US cements its place as a leader in the Global InsurTech market as funding halved in H1

Key Global InsurTech investment stats in H1 2024:

? Global InsurTech investments halved in H1 YoY

? US companies cemented its place on the Global InsurTech stage completing 45% of all deals for the first half of the year

? Element, startup offering white-label insurance products, secured the largest deal in the German InsurTech market for the first half of the year, with a funding round of $54m

In H1 2024, the global InsurTech market experienced a dramatic drop in both deal activity and funding. The sector recorded 157 funding rounds, a sharp 50% drop from the 311 deals completed in H1 2023. Similarly, InsurTech companies raised $2.1bn in H1 2024, reflecting a substantial 51% decrease from the $4.4bn raised during the same period in the previous year. This sharp contraction in both funding and deal volume indicates a challenging environment for the InsurTech industry, as investor interest appears to have reduced considerably compared to 2023.

The United States remained the most active InsurTech market globally, with companies in the country completing 71 deals (45 share) in H1 2024. This marks a significant 46% decrease from the 132 deals closed in H1 2023. However, despite the drop in the number of deals, the US increased its overall share of global InsurTech activity, underscoring its continued dominance in the sector. The United Kingdom followed with 14 deals (9% share), down from 27 deals in H1 2023, while Canada secured third place with nine deals (6% share), overtaking France, which completed 15 deals in H1 2023. Despite the overall decline in activity, the US and UK, maintained their status as the leading players in the global InsurTech landscape.

Element, a German based InsurTech startup offering white-label insurance products, raised $54m from Versorgungswerk der Zahn?rztekammer Berlin K.d.?.R. and Alma Mundi, marking it the largest funding round in the German InsurTech market for the first half of the year. Founded in 2017, Element is a cloud-based InsurTech startup licensed by the German Federal Financial Supervisory Authority (BaFin) as a direct insurer for non-life insurance. The company provides white-labelled insurance products that clients market under their own brand. Element aims to become the first choice for Managing General Agents (MGAs) and reinsurers across Europe by leveraging its data-driven primary insurance capabilities. Licensed and approved in all European countries, Element supports MGAs throughout the EU, ensuring comprehensive and economically viable risk coverage through its integrated reinsurance panel, which matches MGAs with optimal reinsurance capacity providers.

Weekly FinTech deal roundup

Strong week for PayTech – Here are this week’s 25 FinTech funding rounds – PayTech companies led this week’s FinTech funding rounds, accounting for seven of the 25 deals. Read the full story here.

InsurTech news

• Earnix and HCLTech collaborate to drive transformation in insurance rating and pricing - Earnix, the leading global provider of AI-based SaaS solutions for financial services, has partnered with HCLTech to drive transformation in insurance rating and pricing.? Read the full story here.
• California JPIA selects Risk Control Technologies to bolster its loss control processes - The California Joint Powers Insurance Authority?has selected Risk Control Technologies (RCT) to modernise and enhance its loss control and risk management processes. Read the full story here.
• Igloo launches D2C insurance platform to expand accessibility in Indonesia - InsurTech firm Igloo, a leading player in Southeast Asia’s insurance technology market, has officially launched its direct-to-consumer (D2C) platform, igloo.co.id, in Indonesia. Read the full story here.

WealthTech news

• New partnership elevates Wealthtime’s capabilities with Wipro and GBST technology - Wealthtime, a prominent adviser-focused platform business, has initiated a strategic partnership with Wipro, a global leader in technology services and consulting, and GBST, its global technology partner. Read the full story here.
• Mastercard launches Connect Plus to enhance data control in open banking - Mastercard, a global leader in payment solutions, has launched a new product to give consumers more control over how their financial data is shared with third parties. Read the full story here.
• Lunar launches Europe’s first GenAI Native Voice Assistant for seamless banking support - Nordic challenger bank Lunar, known for its innovative digital banking solutions, has made headlines with the launch of its GenAI Native Voice Assistant. Read the full story here.

RegTech news

• Unlocking efficiency in compliance management with AI technology - AI has emerged as a revolutionary force in compliance mapping, transforming traditional processes and delivering substantial business value. Read the full story here.
• How automation transforms regulatory compliance in finance - In today’s evolving regulatory environment, financial institutions are increasingly turning to technology to manage their regulatory lifecycles effectively. Read the full story here.
• The crucial need for Best Execution Monitoring in today’s regulatory environment - Recent regulatory developments have underscored the necessity for investment firms to ensure the protection of their clients’ interests diligently. Read the full story here.

CyberTech news

• New York DFS unveils AI cybersecurity guidance to protect financial sector - The New York State DFS has announced a fresh set of guidelines intended to bolster cybersecurity measures against threats posed by AI. Read the full story here.
• Cyera expands AI data security reach with $162m acquisition of Trail Security - Cyera, an AI-powered data security firm, has completed the acquisition of Trail Security, a data loss prevention firm, for $162m. Read the full story here.
• Sophos acquires Secureworks in $859m deal to boost global cyber capabilities - Sophos and Secureworks, two names in the cybersecurity sector, have entered into an agreement where Sophos will acquire Secureworks. Read the full story here.

ESG FinTech news

• ESG attitudes tracker reveals rising confidence in FCA sustainability labels - The latest ESG Attitudes Tracker from the AIC reveals that the new FCA labels are set to enhance trust in sustainability claims among financial advisers and wealth managers. Read the full story here.
• Standard Chartered unveils sustainable finance variants to boost trade loan flexibility - Standard Chartered has unveiled the sustainable finance variants of BBTL, marking a significant expansion of its finance solutions. Read the full story here.
• CSRHub integrates Richmond Global Sciences data for enhanced ESG impact analysis - CSRHub, a leader in consensus ESG ratings, has announced its integration with Richmond Global Sciences data to enhance its analysis of companies’ ESG impacts. Read the full story here.

Other FinTech news

• How AI strategy and governance differ from traditional business models - AI strategy and governance are integral parts of broader business frameworks, adapting traditional models to include principles essential for deploying AI. Read the full story here.
• Global payment infrastructure boosted as Tillster secures new funding with Stripe - Tillster, a leading global provider of unified commerce solutions for restaurant brands, has recently expanded its partnership with Stripe, a major player in financial infrastructure. Read the full story here.
• DailyPay bolsters financial strength with $100m credit boost from Citi - DailyPay, a New York-based worktech company, announced a significant enhancement to its credit facility, having secured an additional $100m from Citi. Read the full story here.