Insurtech deal volume rises, funding falls: Willis

The volume of insurtech deals increased during the second quarter compared with the first, but the overall level of funding was down, according to a report Thursday from Willis Towers Watson PLC.

There were 71 insurtech deals announced in the second quarter of 2018 with a total value of $579 million. Deal count was up 8% from 66 in the first quarter, although funding was down 20% from $724 million in the first quarter, the broker said in its Quarterly Insurtech Briefing Q2 2018.

The 71 second-quarter transactions is the highest quarterly deal count to date, the report said.

There were 44 property/casualty insurtech transactions in the second quarter, almost flat from the 43 in first-quarter 2018, but up 33% from the 33 in second-quarter 2017, the report said.

Of the 44 second-quarter deals, 52% were in the distribution sector, while 43% were in the business-to-business sector and just 5% in the insurer realm, the report said.

Some of the deal count and funding disparities are due to several large transactions in the first quarter, the report said.

There were seven transactions of $30 million or more in the first quarter compared with just two in the second quarter, which saw 16 transactions from $10 million to $30 million, the report said. 

The U.S accounted for 38% of the 71 second-quarter insurtech deals followed by China at 13% and India at 10%, the report said. Since 2013, the U.S has accounted for 58% of 796 insurtech transactions, the report said.