Insurtech Report 2H2018
Technology and software for the insurance industry has historically been provided by traditional enterprise software companies such as Vertafore and Sapiens. These software companies would distinguish themselves through a combination of products and services across the value chain. The products are usually standard solutions provided to insurance customers as a one-size-fits-all package to a mainstream market.
However, the proliferation of mobile devices, new technologies and enormous funding has spawned an army of start-ups impacting the world stage of insurance software vendors.
Existing insurance software vendors need to adapt and adopt these new technologies, including AI, blockchain data, IoT, predictive analysis, as well as serving new business models such as micro-insurance, mobility-as-a-service, usage-based insurance and more.
The report also includes:
- Trends and analysis of deal activity
- Deal geography
- Top acquirers
- Valuation metrics
Global Insuretech Investment
Interestingly, global transaction volume and revenue multiples have remained relatively stable over the last two years. However, over the same period, fundraising in new insurtech start-ups has demonstrated an impressive growth. 2018 has already reached an all-time high in deal volume with transaction values on track to exceed the 2015 peak.
As the market matures and insurtech start-ups enter their growth-stage with many looking to exit, it is common to see this translate to a rise in M&A activity in the future as enterprise software and financial investors look to grab these opportunities.