Here are some of our findings from the funding front:
Q1 funding fell on a quarterly basis, but stayed above $1B for third straight quarter: While quarterly insurtech funding fell 11% quarter-over-quarter in Q1, total insurtech funding hit $1.42B, driven by 10 $40M+ financing rounds. It was the third straight quarter with over $1B in insurtech funding.
Early-stage insurtech funding continues to go to P&C: Since Q2’17, P&C has outpaced L&H for early-stage (seed & Series A) insurtech funding.
B2B software startups taking larger portion of deals: Globally, 54% of insurtech deals since 2014 have gone to digital lead gen, brokers, or MGA startups. Only 7% of deals have gone to full-stack insurers, while 40% has gone to B2B startups selling software to the (re)insurance industry. But share of deals to B2B startups has grown since the start of 2018.
“Rest of world” outpacing US for insurtech activity: In Q1 2019, 54% of all insurtech deals took place outside of the US. This follows a trend set over the last two years in which more insurtech deals took place outside of the US. In 2016, 58% of all insurtech activity took place in the US.
Tech startup investments by (re)insurers have leveled off: Q1 2019 recorded 30 investments, which marked a 3% decrease from Q4 2018.