Where insurtech’s going and why it's ripe for expansion.Top trends shaping Insurance, InsurTech investment report for Q4 2022 and more
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Insurtech in 2023: Where the sector’s going and why it's ripe for expansion
With challenging conditions expected to continue this year for startups across the board, the world of insurtech is still primed to continue its disruption of the insurance industry while tackling the daily struggles that so many of its customers face. Worth $8bn in 2021, the global insurtech market is expected to be worth almost $30bn by 2026. “Insurance remains a trillion-dollar market, dominated by incumbents with poor technology,” Rob Moffat, partner at Balderton Capital, tells Sifted. “2022 was a brutal lesson for many early insurtechs: the history of these incumbents gives them profitable back books and long experience in refining underwriting and managing claims, while many end customers remained most comfortable buying through brokers, rather than direct.
“Looking ahead to 2023 and beyond, the insurtechs that do well will be those that can show they can consistently deliver a great loss and combined ratio, while maintaining strong growth.”
So, what can we expect from insurtechs in 2023 and what are the biggest issues they need to address? Read more.
MUST READ STORIES
Insurance reinvented: Insights from insurtech leaders
As the insurance industry continues to evolve, how can insurers reinvent themselves for success? In these videos, participants at InsureTech Connect 2022 share their insights.?Read more.
Global commercial insurance prices continue to moderate
Global commercial insurance prices were up 4% in the fourth quarter, down from a 6% increase in Q3 and a 9% increase in G2, according to Marsh’s Global Insurance Market Index.?Read more.
Top Trends Shaping Insurance
With multiple signals to respond to involving economic, business, environmental and social factors, 2023 will demand insurers to respond by strengthening business fundamentals and foundation, while meeting the challenges of a changing market.
INSURTECH REPORTS
Gallagher Re Global InsurTech report for Q4 2022
The report highlights the most current InsurTech investment data to our readership. Key Findings for Q4 2022:
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INSURTECH ROUNDS
Stubben Edge raises ￡5.6m as business valued at ￡175m
Stubben Edge Group has secured a further ￡5.6m in investment taking its total raised to over ￡20m.?Read more.
Floodbase Renames and Closes $12M Series A
The company’s engine pulls data from a combination of historical data, satellites, and ground-based sensors to provide insights on flood risk and measure flood damage in near real-time. The company serves insurers looking to improve their parametric flood policies, which are triggered by weather events and pay out according to the intensity of those events. Read more.
Guardz raises $10 million Seed funding to make cybersecurity accessible to small businesses
The Israeli startup’s solution is purpose-built to provide real-time cybersecurity protection for small companies, many of whom sit in high-risk industries possessing sensitive data?Read more.
INSURTECH DIGEST BACK ISSUES
Do you know top 6 ways claims have already transformed? Insurtech Digest Issue #136 is out! 10 Promising DeFi Use Cases, Insurance Technology Trends and?more
How insurers can win the race to AI maturity? Insurtech Digest Issue #135 is out! Is WEB3 an opportunity for insurers? Top InsurTech Leaders 2022 and?more
Look at insurtech startup listed on ESGFINTECH 100 companies 2022 - Insurtech Digest Issue #134 is out! Insurtech Market Overview, Global Insurance Report 2023 and?more
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Have a nice day!
Alberto
InsurTech at Gallagher Re
2 年Thanks for including references to the Gallagher report Alberto Garuccio!
Seeking safety professionals to share their insights in The State Of Safety Survey 2025: scorecard.slipsafety.co.uk/survey2025
2 年My perspective: many Insurtechs have made up a solution to a problem that doesn't really exist. Rather than finding a real problem and coming up with a solution to match it
Neogeneralist (Human) Future Thinker ? Advisor ? Fractional Strategist ? Trainer & Mentor ? Keynote speaker & Author ? Strategy-Technology-People connector ? 40under40 Insurance ? Social Impact Enthusiast
2 年??
CEO and co-founder at Proxima | Insurtech C-Level executive and serial eBusiness entrepreneur in Latin America and USA.
2 年Right on, Alberto. I think that the debacle that is cleaning up the insurtech sector was fueled by two factors in particular: 1. Once the liquidity wave dropped in 2022, the true financial health of most insurtech startups was revealed. Many had forgotten key principles of insurance (premium or loss ratio metrics were replaced with visitors and leads). As a result, many companies were actually losing money each time they sold a new policy. 2. As startups started to run out of cash, investors began to doubt the initial B2C hypothesis. Taking the example of a well-known insurtech, their CAC is equivalent to 140% of the annual premium per policy. With an average customer lifetime of 4 years, they spend 35% of the premium on CAC, much higher than agent commissions. Adding the time it takes to build a strong B2C digital audience, insurtechs like this were headed for extinction. However, the ones that got their numbers right and flexibilized the distribution approach are doing fine. Ultimately, the outcome is a more mature insurtech sector, a 2nd generation that embraces intermediaries, and clear evidence that better user experience and modern, efficient operations are possible in this industry.
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2 年Thanks for sharing, useful insights.