What should companies look for when selecting a WealthTech provider & Global InsurTech investment fall short in H1 2023

Top Story of the Week

What should companies look for when selecting a WealthTech provider?

WealthTech is a highly competitive market that continues to welcome more startups each year. In fact, a recent report from 360 Research Reports claimed that the market size will rise at a 22.69% CAGR, going from $8.1bn in 2021 to $27.8bn by 2027. While a huge market? empowers companies to choose between providers, it can be overwhelming when trying to find the best provider for the job.

Read the full story?here.

Research highlight

Global InsurTech investment falls short in H1 2023 whilst deal activity remains stable

Key Global InsurTech investment stats in H1 2023:

• InsurTechs have raised a combined $34.8 billion, globally from 2019 – H1 2023
• Global InsurTech deal activity is on track to reach 428 deals in 2023, based on H1 2023 activity a 1% increase YoY
• The average InsurTech deal size was $8.4m in H1 2023, a 52% drop from H1 2022

The InsurTech sector, globally has seen a significant drop in investment during H1 2023 compared to the previous year but deal activity is on track to increase. Based on the InsurTech deal activity in the first half of 2023, it is projected that there will be a 1% year-on-year increase, bringing the total number of deals in 2023 to an estimated 428. From 2019 to the first half of 2023, InsurTech companies worldwide have collectively secured a total of $34.8 billion in funding. In the first half of 2023, the average deal size for InsurTechs stood at $8.4 million, marking a significant 52% decrease compared to the same period in 2022.

Bolttech, a Singapore based InsurTech with the mission of building the world’s leading technology-enabled ecosystem for protection and insurance, had the largest InsurTeh deal globally in H1 2023, raising $196m in their latest Series B extension funding round, led by Tokio Marine. The funds from the Series B will be utilised to further accelerate Bolttech’s organic growth. This includes investments in proprietary technology, enhancing digital capabilities for business partners and end consumers, and attracting talent across Bolttech’s 30+ markets. Additionally, the funds will be used to explore inorganic opportunities to expedite international growth. Rob Schimek, Bolttech’s group chief executive officer, said, “Having just celebrated our third anniversary since our launch in 2020, we are incredibly proud of what we have achieved so far on our mission to build the world’s leading, technology-enabled insurance ecosystem. We thank all our Series B investors for their support, and we are excited to welcome our new investors, reputable leaders in their respective spaces, and look forward to strong partnerships that will fuel Bolttech’s continued growth on our path to profitability in 2024.”

The latest InsurTech related regulation came from the EU. The Retained EU Law (Revocation and Reform) Act 2023 makes significant changes to the framework of REUL. The Treasury will repeal the firm-facing requirements in retained EU law (REUL), and we will replace those provisions, where appropriate, with our rules. There is a significant amount of REUL, and the repeal and replacement work will have an impact on our Handbook. This includes the Insurance Distribution Directive (IDD). With the next steps being an FCA Consultation Paper in September 2023. The IDD was designed to establish standards and transparency measures for insurance distributors, ensuring fair treatment and clear information for consumers when purchasing insurance. It covered aspects like business conduct standards and transparency requirements, such as providing comprehensive information to consumers. Efforts were underway to replace certain regulations related to the IDD, in collaboration with the Treasury, for regulatory consistency.

Weekly FinTech deal roundup

FinTech sector drops this week with only 24 deals

This week saw the FinTech sector flounder compared to seven days ago, as the space failed to meet the $1bn mark in deals completed.

Read the full story?here.

RegTech news

• Navigating SEC’s marketing rule: Essential insights from recent Risk Alerts – The SEC has always been at the forefront of regulating firms, ensuring they maintain good marketing practices. Its risk alerts play an instrumental role, offering firms the much-needed guidance to prepare for impending examinations. Read the full story?here.
• The layered approach to compliance culture in a constantly evolving ecosystem - The intricate connection between corporate culture and compliance holds significant value in today’s businesses. Every decision made by employees can potentially impact compliance. Read the full story?here.
• Sigma360 revolutionises adverse media screening with ArticleAI - Leveraging global media for a more proactive stance on risk is the future of financial crime prevention. Traditional methods often involve manual searches across various applications to identify potential threats in customer and counterparty relationships. Read the full story?here.

Don't Miss Out - AML & FinCrime Tech Forum will be hosted on 5th December 2023!

CALLING ALL FINANCIAL CRIME, AML, FRAUD & COMPLIANCE PROFESSIONALS! THE AML AND FINCRIME TECH FORUM IS BACK.

Find out more?here.

InsurTech news

• Is the price really right? A look at US commercial P&C insurance pricing in 2023 -?The 2023 landscape of the US Commercial P&C market reveals that traditional understandings of pricing are perhaps outdated. An overwhelming 78% of insurance providers in the US acknowledge a pressing need to bolster their technological capacities. Read the full story?here.
• The future of insurance claims: How automation and AI are enhancing customer experience -?Navigating the insurance claim process often comes during challenging times for customers. Following an accident, emergency, or even a natural calamity, individuals typically feel apprehensive and uncertain. Read the full story?here.
• How Ushur is pioneering the future of InsurTech with advanced CXA -?For many insurers, providing a satisfactory customer experience is at the forefront of their ambitions. One such InsurTech is Ushur, who prides themselves on their industry-leading Customer Experience Automation (CXA) platform. But why is this solution so groundbreaking? And can it be the silver bullet many carriers need? Read the full story?here.

WealthTech news

• AI and ESG trends transforming wealth management in 2023 - Economic uncertainties have seen Western economies grapple with challenges such as high-interest rates, amidst geopolitical issues like the war in Ukraine. This ripple effect has significantly impacted the wealth management sector. Read the full story?here.
• The evolution of platforms: 7 features of tomorrow’s investment aids -?Platforms have evolved significantly over the years. Earlier, their main function was limited to the administration of assets. This encompassed the realm of custody, execution, and reporting. However, the definition of a ‘progressive’ platform today has transformed. Read the full story?here.
• The digital revolution in meeting consumer duty standards - Post-deadline, the financial industry is grappling with the new standards set by the UK’s latest regulatory mandate. The objective of this update is to bring more transparency and accountability to wealth management and insurance enterprises, fostering a more profound commitment to the consumer. Read the full story?here.

CyberTech news

• Chubb and SentinelOne’s collaboration promises a new era in cyber threat defense - Chubb, recognised as the world’s largest publicly traded property & casualty insurance firm, has entered into a strategic partnership with SentinelOne, an established leader in the cybersecurity sector, to enhance cyber risk management for businesses in the U.S. Read the full story?here.
• FTC nominees push for Congress-led data privacy legislation -?A trio of nominees to the Federal Trade Commission (FTC) stressed the importance of Congress passing a federal privacy bill. Read the full story?here.
• Nord Security strengthens cybersecurity hold with $100m investment -?Nord Security, a global leader in internet privacy and security solutions, has secured a $100m investment. Read the full story?here.

Don't Miss Out - Global WealthTech Summit will be hosted on 2nd November 2023!

The must-attend event for leaders and innovators across private banking, wealth, and asset management.

Find out more?here.

ESG FinTech news

• SEC reviews Scope 3 emissions in upcoming climate disclosure rules -?The U.S. SEC has received feedback against the inclusion of Scope 3 emissions in their proposed climate disclosure rule. Read the full story?here.
• Argenta adopts Moody’s ESG solution for sustainable underwriting - Argenta Syndicate Management Limited (ASML), a prominent player in the insurance sector, has made a strategic move by choosing Moody’s ESG (Environmental, Social, and Governance) insurance underwriting solution. Read the full story?here.
• Assurance and CSRD: The roadmap to transparent sustainability reporting -?The Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standard (ESRS) mark a significant shift in the way organisations approach sustainability reporting. Read the full story?here.

Other FinTech news

• AlphaSense’s AI-driven market prowess leads to $150m Series E funding - AlphaSense, recognised as a frontrunner in the market intelligence and search domain, has unveiled its latest financial figures. Read the full story?here.
• ECB experiments with ChatGPT-style AI - The?European Central Bank?is exploring the use of ChatGPT-like large-language models for document analysis and software testing. Read the full story?here.
• French startup Mistral AI unveils first GenAI model to challenge Meta and OpenAI -?France’s Mistral AI has announced its first Generative AI model to compete with US leaders in the space. Read the full story?here.

Don't Miss Out - AI in Financial Services Forum will be hosted on 16th November 2023!

CUT THROUGH THE AI HYPE! JOIN THE MOST SENIOR-LEVEL AI IN FINANCIAL SERVICES EVENT

Find out more?here.