Unpacking the InsurTech Landscape (CB Insights)

Summary

• Global insurance tech investment reached $2.56 billion in the first three quarters of 2018.p.6
• Large funding rounds accelerated with 19 financing rounds of $30M+ recorded in 2018 YTD.p.8
• Total investment in private tech deals with (re)insurer participation reached $21.6B since 2012, compared to $22.5B paid in aggregate by AXA, AIG, and The Hartford for major consolidation acquisitions.p.12
• US insurance market sizes vary widely, led by personal auto insurance at $210B, group benefits at $140B, and small commercial insurance at $100B in estimated premiums written.p.16
• The cyber insurance market is projected to reach $9B by 2020, with the top 5 writers holding a 62% market share of standalone cyber direct premiums written in 2016.p.22
• Lenders using Blend Labs software represented more than 25% of the total US mortgage market, with $60B in mortgage applications processed in 2017.p.40

Key insights

1. Global insurance tech investment reached $2.56 billion across the first three quarters of 2018.p.6
2. Financing rounds of $30M+ in insurtech reached 19 deals in 2018 YTD.p.8
3. Tech giants are targeting high-growth insurance markets in India, Indonesia, and China with projected P&C CAGRs of 8.7%, 7.5%, and 7.0% respectively.p.9
4. (Re)insurers participated in $21.6B of private tech deals since 2012 compared to $22.5B spent by AXA, AIG, and The Hartford on acquisitions of XL Catlin, Validus, and Navigators.p.12
5. The top 5 insurance writers accounted for 62% of standalone cyber direct premiums written in 2016.p.22
6. Root Insurance accumulated 1 billion miles of mobile telematics data compared to 300 million miles for Progressive Snapshot.p.37
7. Blend Labs software processed $60B in mortgage applications in 2017 before launching its home insurance agency.p.40