How can RegTechs help to combat document fraud & UK holds top InsurTech spot in Europe

Top Story of the Week

How can RegTechs help to combat document fraud? - One of the most pressing issues with the financial industry right now is document fraud. How can RegTech’s tackle this challenge and provide more support?

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Research highlight

UK remains the leading InsurTech hub in Europe as investment nearly halves in 2023

Key European InsurTech investment stats in 2023:

• European InsurTech deal activity totalled at 126 deals in 2023, a 44% reduction from the previous year
• European InsurTech companies raised a combined $823m in investment during 2023, a 84% drop from 2022
• The UK was the most active European InsurTech country with 46 deals, a 37% share of total deals

The European InsurTech sector has seen a significant drop in both deal activity and investment during 2023. In 2023, European InsurTech witnessed a significant decrease in deal activity, with only 126 deals, marking a 44% decline compared to the previous year. European InsurTech firms faced a substantial decrease in investment, securing a total of $823m in 2023, reflecting an 84% drop from their 2022 funding levels. A BCG report indicated that some product lines, notably personal property and casualty (P&C) and health insurance, have reached a stage of relative maturity and now have lower expectations of private investment growth.

Quantexa, which provides data analytics for anti-money laundering, had the largest European InsurTech deal in 2023, raising $129m in their latest Series E funding round, led by GIC. In what has been a difficult period for many tech companies, Quantexa continues to post impressive growth, having grown their ARR over 100% since closing their Series D round. In the same time period, Quantexa has seen robust growth in all regions, including a breakout performance in North America, with an increase in ARR of over 180%. This new capital will ensure that Quantexa continues to grow its global presence and invest in its world-class engineering talent. Quantexa also plans to use the funding to boost technology innovation efforts and strengthen its Decision Intelligence Platform capabilities in low-code data fusion, graph analytics, machine learning (ML), natural language processing (NLP) and artificial intelligence (AI). Additionally, Quantexa will increase focus on accelerating joint go-to-market efforts with its flagship partners which include Google, Moody’s, Accenture, KPMG, Deloitte, and EY.

The UK was the most active European InsurTech country with 46, a 37% share of all funding rounds. France was the second most active with 16 deals, a 13% share and Germany was third with 15 deals, a 12% share. Spain was the fourth most active with nine deals, a 7% share and Italy was fifth seven deals, a 5.5% share.

The UK’s Financial Conduct Authority (FCA) has finalized rules for insurance firms regarding the transfer and replacement of retained EU law provisions from the Insurance Distribution Directive (IDD). The FCA is replacing IDD delegated regulations with its own rules and guidance, ensuring continuity in the regulatory framework for insurance-related activities. These changes apply to all firms involved in insurance activities and will be effective from April 5, 2024. The FCA's actions stem from the UK's exit from the EU and the need to repeal IDD delegated regulations while maintaining necessary requirements. This follows consultation in CP23/19 to address the transition.

Weekly FinTech deal roundup

FinTechs raise over $200m in funding rounds this week - Up to 17 deals were recorded by FinTech Global this week in the FinTech sector, with a total of $225m being raised across all the deals.

Read the full story here.

RegTech news

• What are the key regulatory developments to keep an eye on in H1? - As we approach the end of the second month of 2024, the direction of regulatory developments is beginning to take shape. What can we expect to see in the first half of 2024? Read the full story here.
• Saifr acquires GOST to enhance regulatory solutions amidst growing risks - Saifr has announced its strategic acquisition of GOST, an artificial intelligence (AI) platform from Giant Oak. Read the full story here.
• Napier AI secures ￡45m investment from Crestline for RegTech expansion - LEI Worldwide has emerged as the leading force in the Irish Legal Entity Identifier (LEI) market for January 2024. Read the full story here.

Don't Miss Out - AML & FINCRIME TECH FORUM USA 2024 will be hosted on 21st March 2024!

We will be welcoming hundreds of FinCrime fighters through the doors to a day packed full of panel discussions, presentations, product demos and networking opportunities.

Find out more here.

InsurTech news

• KYND teams up with Probitas 1492 to enhance underwriting capabilities - KYND Limited, a prominent figure in cyber risk management, has announced a strategic partnership with Probitas 1492, a leading Lloyd’s of London underwriting syndicate. Read the full story here.
• Akur8 and MGS Seguros join forces to revolutionise insurance pricing in Spain - Akur8 and MGS Seguros have announced an exciting collaboration aimed at revolutionising insurance pricing strategies within the Spanish market. Read the full story here.
• dacadoo adds major updates to Digital Health Engagement Platform in 2023 - dacadoo, a pioneer in the digital health industry, revealed a series of groundbreaking platform updates in 2023, reaffirming its dedication to enhancing community health and well-being. Read the full story here.

Don't Miss Out - Global InsurTech Summit will be hosted on 17th April 2024!

Meet the people who matter in InsurTech! The Global InsurTech Summit will host hundreds of vetted senior decision-makers alongside the most disruptive InsurTech founders and tech innovators in Europe.

Find out more here.

WealthTech news

• What firms should know when looking to custodial independence for advisors - One of the biggest challenges that wealth firms face is providing their advisors with seamless access to custodial data. This is not just a technical hurdle, but a fundamental aspect of how WealthTech can empower financial advisors to better serve clients with utmost confidence. Read the full story here.
• Velexa launches new Fractional Bonds feature: Making elite investments accessible to all - Velexa, recognised as a top WealthTech100 company, has recently unveiled its latest innovation: fractional bonds. This new feature is a significant addition to their comprehensive suite of investment tools, designed for both embedded and standalone applications. Read the full story here.
• Empowering retail investors: The future of wealth management in the digital age - A recent webinar co-hosted by Deloitte and everyoneINVESTED brought together industry experts to discuss the changing landscape of wealth management. Read the full story here.

Don't Miss Out - Global WealthTech Summit USA will be hosted on 19th March 2024!

The event hosts the most senior-level investment leaders and innovators to discuss the critical industry challenges amid increased adoption of AI solutions and competition by digital challengers.

Find out more here.

CyberTech news

• Strategic acquisition by Resilience to integrate BreachQuest’s Incident Response technology - Resilience, a cyber risk management pioneer, has recently completed the strategic acquisition of BreachQuest, a trailblazer in incident response technology. Read the full story here.
• Device Authority clinches $2m from Mercato Partners for IoT security expansion - Device Authority, a global leader in identity and access management for Enterprise IoT ecosystems, has recently bolstered its financial backing with an additional $2m investment from Prelude, the venture practice of Mercato Partners. Read the full story here.
• Permit.io secures $8m in Series A for revolutionary authorization service - Permit.io, a full-stack authorisation-as-a-service provider, has successfully closed a Series A funding round, amassing $8m. Read the full story here.

ESG FinTech news

• Is there enough ESG transparency and accountability within finance? - Understanding the Corporate Sustainability Reporting Directive (CSRD) is crucial for companies as it heralds a new age of accountability in environmental and sustainability reporting. Read the full story here.
• Mastering CSRD emissions reporting: Strategies for transparency and sustainability - In the realm of sustainability, the Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS) are currently at the forefront of discussions among professionals. These new mandates require EU-based companies to adopt comprehensive reporting protocols, adhering to the European Financial Reporting Advisory Group’s (EFRAG) stringent guidelines. This shift has propelled the need for robust solutions to achieve compliance seamlessly. Read the full story here.
• 9 facts you should know about EU taxonomy within real estate and construction sector -?After two years of EU Taxonomy reporting, Greenomy’s Sustainability and ESG data experts have embarked on an in-depth review, focusing specifically on the construction and real estate sectors. This first sectoral analysis aims to illuminate the practical application of the EU Taxonomy, guiding companies towards the goal of carbon neutrality by 2050. Read the full story here.

Other FinTech news

• Levr.ai clinches $1m boost to revolutionise small business lending with AI - Canada-based Levr.ai, the cutting-edge intelligent loans software platform, has successfully raised an additional $1m in seed funding, building on its previous fundraising efforts which have now totalled over $2.5m. Read the full story here.
• Kani Payments and Pismo forge strategic partnership for global FinTech expansion - Kani Payments, a leading global data reconciliation and reporting platform, has announced a strategic partnership with Pismo, a comprehensive issuer processing and core banking platform. Read the full story here.
• FullCircl responds to BIBA manifesto launch amid UK economy turbulence - Recent years have seen the UK economy facing significant challenges, including the aftermath of the Covid-19 pandemic, Brexit uncertainties, supply chain disruptions, and changing consumer behaviours. Read the full story here.