International technology mergers and acquisitions (M&A) advisory firm Hampleton Partners has released its insurtech M&A market report, and it points to the likelihood of global insurtech fundraising amounting to US$6 billion for 2019.
The outlook comes as the first half figure breaks records, with the value raised by insurtechs in the period reaching almost US$3 billion. Meanwhile, according to the consultancy, interest has been demonstrated in technologies such as telematics, drones, and mobile-first platforms.
“In this high-growth sector, we have seen more VC funding being funnelled into larger- and higher-valuation deals that have already shown success,” noted Hampleton Partners founder Miro Parizek. “Emerging technologies offer solutions to underserved markets, enhance business models, or create new markets altogether.
“For example, insurtechs are taking advantage of global trends in smart home device tech to shift towards proactive risk management for homeowners, rather than reactive risk assessment, in this new disruptive business model.”
Meanwhile, the company cited the importance of European insurtech hubs, highlighting that half of the 10 largest insurtech investments in 2018 flowed into businesses based in Berlin.