Insurtech - Thematic Research

Insurtech - Thematic Research

Summary

Over 2020-21, the insurtech market was characterized by huge company valuations created though both public and private funding. Interest rate increases - along with increasingly strenuous economic pressures on investors - have acted to reduce the incentives and appetite for investors to get involved in such activity. This trend is likely to persist for the remainder of 2022 and most of 2023. The effect of the insurtech phenomenon on the wider insurance industry is clear to see. New-age technologies and processes involving artificial intelligence, blockchain, the Internet of Things, and big data have been championed by startups, forcing incumbents to react and match the efficiencies these tools have brought.

Following a few years of high-level investment, high valuations, and high pressure on insurtechs, 2022 has marked the start of a reality check for the sector. Share prices of most publicly listed insurtechs have followed similar downward trends, driving some to artificially inflate their prices. As the economic situation across the world takes on an increasingly bleak outlook, pressure is now on leading insurtechs to show signs of profitability with investor finance in shorter supply. Many firms have been forced to reduce headcount - often shortly after announcing ambitious expansion plans.

Scope

  • GlobalData’s Deals Database indicates that by mid-August 2022, the number of completed deals in the insurtech theme was at just 49.2% of the whole of 2021.
  • Marmalade is the most well-known brand in the UK among popular insurtechs, although just 12.9% of consumers indicated that they had heard of the company.
  • In GlobalData’s 2021 UK Insurance Consumer Survey, 51.9% of respondents indicated that they would be unlikely to purchase insurance from a startup. For consumers under 40, this figure dropped to 31.3%.
Reasons to Buy
  • Identify leaders in insurtech across a variety of disciplines.
  • Determine how leaders use modern technologies to drive efficiency and reach new consumers.
  • Recognize how incumbents are collaborating with insurtechs to improve their own product offerings and customer experience.
  • Evaluate the strength of investment into the insurtech theme and ascertain the drivers behind changes in investing.


  • Executive Summary
  • Players
    • Table Figure 1: Who are the leading players in the insurtech theme?
  • Technology Briefing
    • Blockchain
    • AI
    • Big data
    • IoT
  • Trends
    • Technology trends
      • Table Technology trends
    • Macroeconomic trends
      • Table Macroeconomic trends
    • Regulatory trends
      • Table Regulatory trends
  • Industry Analysis
    • Market size and growth forecasts
      • Investment in insurtech remained resolute during the pandemic, but the downturn has now arrived
        • Table Figure 2: Completed deals in the theme have taken a hit in 2022 after performing well in 2020 and 2021
      • Investor confidence, cost of capital, and the race to profitability
        • Table Figure 3: Venture funding has fallen in value as investor confidence begins to wane
      • Publicly listed insurtechs show the market reevaluation and challenges for the sector
        • Table Figure 4: Leading insurtechs have performed poorly on the NYSE in the past 12-18 months
      • Deals in key tech themes are also drying up in 2022
        • Table Figure 5: Overall investment in key tech themes within insurance has fallen in 2022
      • Recognition and willingness to purchase from startups are barriers for insurtechs
        • Table Figure 6: Insurtechs are gaining increased recognition among consumers
        • Table Figure 7: Over 50% of all consumers are unlikely to purchase a policy from an insurtech
        • Table Figure 8: Brand recognition of insurtechs among SMEs is greater than consumers, with Anorak and Zego leading
      • Fintechs could benefit from expansion into developing but less well-known regions
        • Table Figure 9: Developing nations generally have more belief in digital-only banks’ qualities than developed nations
        • Table Figure 10: Under 35s are much more receptive to the quality and offerings of digital-only banks
    • Mergers and acquisitions
      • Table Mergers and acquisitions
    • Venture financing
      • Table Venture financing
    • Use cases
      • Insurtechs can aid insurers in tackling the effects of climate change
        • Table Figure 11: The frequency and average cost of natural catastrophes are increasing
      • Insurtechs are making an impact in climate insurance using parametric products
      • Insurtechs are using modern technologies to aid farmers in the poorest countries
      • Parametric insurance has its uses outside of climate change
      • AI tools help insurtechs increase efficiencies
      • Enabling insurtechs are offering SaaS and technological tools to help incumbents upgrade legacy systems and processes
        • Table Figure 12: Hedvig’s claim process allows customers to submit a claim via a voice memo
        • Table Figure 13: Tractable uses computer vision to assess auto and property claims
    • Timeline
      • Table Figure 14: The insurtech story
  • Value Chain
    • Table Figure 15: The insurance industry value chain
    • Product development
    • Marketing and distribution
    • Underwriting and risk profiling
    • Claims management
    • Customer service
  • Companies
    • Disruptors
      • Table Disruptors
    • Collaborators
      • Table Collaborators
  • Sector Scorecards
    • Life insurance sector scorecard
      • Who’s who
        • Table Figure 16: Who does what in the life insurance space?
      • Thematic screen
        • Table Figure 17: Thematic screen - Life insurance sector scorecard
      • Valuation screen
        • Table Figure 18: Valuation screen - Life insurance sector scorecard
      • Risk screen
        • Table Figure 19: Risk screen - Life insurance sector scorecard
    • Non-life insurance sector scorecard
      • Who’s who
        • Table Figure 20: Who does what in the non-life insurance space?
      • Thematic screen
        • Table Figure 21: Thematic screen - Non-life insurance sector scorecard
      • Valuation screen
        • Table Figure 22: Valuation screen - Non-life insurance sector scorecard
      • Risk screen
        • Table Figure 23: Risk screen - Non-life insurance sector scorecard
  • Glossary
    • Table Glossary
  • Further Reading
    • GlobalData reports
      • Table GlobalData reports
  • Our thematic research methodology
    • Table Figure 24: Our five-step approach for generating a sector scorecard
  • About GlobalData
  • Contact Us

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