Insurtech investment surpasses USD10 bn in Q3 2021

Capital invested in insurance technology start-ups surpassed the USD10 billion mark for the first time in any one year on record, according to a new quarterly insurtech briefing by Willis Towers Watson. 2021 has now overseen a record-breaking USD10.5 billion raised during the first three quarters of the year.

Still with three months left to go, 2021 is now only USD12 million short of the entirety of what was invested into Insurtechs globally in 2018 and 2019 combined. The total deal count was 421 which is also an annual record stated the briefing.

The latest quarter saw 113 deals yield more than USD3.1 billion in investment, a 23 percent increase over Q3, 2020. It was the second-largest funding quarter on record. Deal numbers were up only nine percent year-on-year, but the number of mega-rounds of USD100+ million reached 11 and accounted for more than half of total funding (down from nearly 70 percent in Q2, 2021, a quarter that broke nearly every record). Two of the three largest deals were with cyber-related Insurtechs.

The share of US-domiciled investment targets rebounded to nearly 46 percent, an increase of roughly seven points from the previous quarter, but countries including Indonesia, Sweden, South Africa, Singapore, and the UAE saw quarter-on-quarter increases in deal activity.