Global InsurTech Venture Funding Hits Record Again During Q2 2021: Forrester

Global InsurTech funding reached record levels once again in the 2021 second quarter, even as financings declined from the first three months of the year, according to Forrester’s new sector roundup.

InsurTechs attracted $3.8 billion in financing during Q2, covering 342 deals. That’s up 65 percent compared to the same period last year, with digital insurers nailing down nearly half of the total.

In the 2021 first quarter, InsurTech financing surpassed $6.46 billion, quintuple from the same year-ago period.

The $10 billion in InsurTech financing for the 2021 first half has already surpassed the $7 billion raised in all of 2020.

Here are additional statistics regarding Q2 2021 InsurTech financings:

• 86 startups received funding, which broke down into 342 investment transactions from 305 investors.

• 11 rounds were above $100 million.

• 65 percent of funding went to U.S. based InsurTechs. Among the largest to receive funding during the quarter – Next Insurance, at $250 million.

• Seed funding in 2021 as a percentage of overall funding is now close to 2019 levels, at about 2 percent of the total. Seed financing was 10 percent in 2020 and 3 percent in 2019. Forrester said the low number of seed financings points to investors focusing on proven startups.

• Investors are focused most on digital transformation in health insurance, followed by insurance infrastructure/back end technology, insurance comparison or marketplace sites, enterprise/commercial insurance startups and P2P insurance startups.

• Some of the big InsurTech investors during the quarter include American Family Ventures, CNO Financial Group, Markel, MassMutual, Munich Re Ventures and Nationwide.

The full report is “Forrester Infographic: InsurTech Funding Roundup, Q2 2021.”

Source: Forrester