AI, blockchain, machine learning, robo-advisory and Internet of Things technology innovators being absorbed by traditional insurance companies and vendors
New business models such as microinsurance, usage-based and peer-to- peer insurance made possible by technology innovation that drives down cost base
London, UK – 20 November 2018. The Insurtech M&A Market Report from international technology mergers and acquisitions advisors, Hampleton Partners, reveals that 2018 global fundraising for insurtech start-ups has already reached an all-time high in volume with 204 deals and transaction values of $2.6bn, close to the 2015 peak of $2.7bn.
Since 2016 the insurtech sector has reported 151 transactions, with 22 buyers making more than one acquisition. Strategic buyers, such as insurance enterprise software company Sapiens International and insurtech Charles Taylor, are in the driving seat with 87 per cent of all transactions, versus private equity’s 13%.
Miro Parizek, founder, Hampleton Partners, said:
“There’s an army of Insurtech startups which are challenging legacy players and the market has adopted a survival of the fittest environment. Since organic growth and investing in R&D is a long-term game, M&A has been the natural solution to the incumbents’ problem of accelerating technological transformation and evolving their traditional business models for the 21st century.”
One key example of an insurance giant innovating via M&A is Zurich International which bought Bright Box and its AI-first, connected car platform Remoto. Zurich Insurance Group is working with data gathered by its connected car technology to develop personalised auto insurance and services.
Miro Parizek concluded,
“Next-generation insurance is having to evolve quickly with new business models and a greater focus on technology innovation. Insurtechs have become a natural threat to incumbents, but also potential valuable partners in this changing landscape. It’s a sector that’s growing rapidly and stands to capture a meaningful share of the value pools within a few years. How quickly incumbents adapt to these inexorable market changes will determine the size of their share in the next generation of the insurance industry.”
Download the Hampleton Partners Insurtech M&A Market Report here:
Note to Editors:
Hampleton Partners’ Insurtech Market Report 2H 2018 is compiled using data and information from the 451 Research database (www.451research.com).
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About Hampleton Partners
Hampleton Partners is at the forefront of international mergers and acquisitions advisory for companies with technology at their core. Hampleton’s experienced deal makers have built, bought and sold over 100 fast-growing tech businesses and provide hands-on expertise and unrivalled advice to tech entrepreneurs and companies which are looking to accelerate growth and maximise value.
With offices in London, Frankfurt and San Francisco, Hampleton offers a global perspective with sector expertise in: Automotive Technology, IoT, AI, FinTech, Hi-Tech Industrials & Industry 4.0, Cybersecurity, VR/AR, HealthTech, Digital Marketing, Enterprise Software, SaaS & Cloud, E-commerce.