The first two quarters of 2016 have seen over $1 billion in VC investment according to ‘The Pulse of Fintech Report’ – a collaboration between KPMG International and CB Insights.
VC investment into wider FinTech firms fell by almost 50% in Q2’16 but InsurTech stands out as it continued to attract significant attention.
The $1bn VC investment was spread across 82 deals, 63% of which were with US based start-ups. Similarly, 15 of the 20 biggest InsurTech deals in the quarter were in the US, with 3 in Asia and 2 in the UK.
However, despite not attracting the most, or the biggest deals, the UK is seen as an important leader in the InsurTech space for healthcare, automotive insurance, comparison websites and data management. In addition, the UK's InsurTech sector is showing the emergence of businesses focussed on artificial intelligence, on-demand insurance, P2P, blockchain and IoT related insurance solutions.
Murray Raisbeck, Partner, InsurTech, KPMG UK said “In 2015, InsurTech came into its own, attracting $2.5 billion of VC investment, a massive leap compared to the previous 4 years. 2016 is on track to be another strong year as many traditional insurers are increasingly creating their own venture capital funds in order to invest in technology companies.”