Perdix Knowledge Management’s Post

Dear LinkedIn friends, It is my pleasure to share with you the fourth and final Gallagher Re InsurTech report of the 2023 series. We conclude the 2023 overview with a last look at the different lifecycle funding stages into InsurTech - this latest report, Q4, looks at what we are calling 'late-stage funding and a view on exit' (essentially Series D and E+, and then the various ways in which an InsurTech can exit should they choose to). At a glance for this fourth quarter and 2023 overall, the numbers are very interesting; Global InsurTech funding decreased 43.7% year on year, from USD8.0B in 2022 to USD4.51B in 2023. Global InsurTech funding ticked up 0.5% quarter on quarter, from USD1.098B in Q3’23 to USD1.103B in Q4’23. 39.9% of all Q4’23 InsurTech funding went to mega-round deals — a six-quarter high. Global deal share among United States-based InsurTechs rose 5.50% between 2022 and 2023 — the largest gain among all countries. Q4’23 saw 41 venture technology investments from (re)insurers. Our view is that despite numbers being down, we are very bullish on the current state of InsurTech – the main driver of this downturn is a general reduction in the average deal size being written, but clearly no shortage of activity. The number of industry players making investments is unprecedented. To understand what is driving these numbers and get a better sense of the exciting inflection point we are now observing, please access the complete report. Full report available for download at the bottom of the link https://lnkd.in/gVaxdG-Q Now to our wonderful participants – this report would not be possible without the following companies and people featured; Tomorrow.io (Dan Slagen, Itai Zlotnik), Kin Insurance (Landis Cullen), REVO Insurance (Marica Cammaroto, Simone Lazzaro), Bart T Zanelli, State Farm Ventures State Farm (Heather Reginelli, Mike Remmes), OMERS Ventures (Dave Wechsler), Andra (Roman Glukhovsky), Corvus Insurance (Mike Lloyd, Philip Edmundson, Kerry Pillion), Travelers, CCC Intelligent Solutions (Jeff T.), our partners CB Insights (Christopher Sekerak), Freddie Scarratt, Irina Heckmeier, Brea White, Charlie Thomas, Mark Cobley and Jonathan Ward. #insurtech #gallagher #gallagherre

Our portfolio companies Coalition, Inc. and Next Insurance are among the most promising insurtech startups of 2024, according to CB Insights. 🥳 Coming back from our social media summer break, CB Insights has released its Insurtech 50 annual list of the most promising private insurtech companies in the world. The companies have been selected based on CB Insights datasets, including deal activity, industry partnerships, team strength, investor strength, commercial maturity, mosaic scores, and more. 📊 One of the 2024 Insurtech cohort highlights is the funding and valuations of the companies. The cohort has raised USD 5.6 billion across more than 210 disclosed equity deals. Next Insurance and Coalition top the list with USD 1.1 billion and USD 770 million respectively. 💪 Take a look at the other highlights of this year’s Insurtech 50 annual list: https://lnkd.in/erDF5djU

The Struggles of Securing Capacity as Non-Insurance InsurTech Founders are Real! Building an InsurTech business is no small feat, but one of the biggest challenges we’ve faced at careless™ insurance has been securing capacity as founders without traditional insurance backgrounds. The insurance industry is a tight-knit world, heavily reliant on legacy systems and long-standing relationships. As outsiders, breaking through has required persistence, resilience, and creativity. For new InsurTech founders, the path to securing capacity often feels like a chicken-and-egg problem: underwriters want to see proven volumes, but you need capacity to go to market and generate those volumes in the first place. Without an existing track record, it’s hard to get that first “yes.” Underwriters are naturally risk-averse, and partnering with a startup often feels like a leap of faith for them. What has worked for us is leaning into transparency, showing a clear vision, meticulously crafted products, and a strong plan for go-to-market execution. We’ve also been fortunate to have incredible advisors, like Gemma Jarrett, who have helped us navigate these complexities and opened doors we wouldn’t have reached otherwise. It’s been a steep learning curve, but we’ve come to appreciate that the first win, securing that initial capacity, can unlock countless opportunities and validate your model for future partnerships. To fellow InsurTech founders: if you’re finding it tough, you’re not alone. The journey is far from easy, but persistence pays off. And to the insurance ecosystem: it’s time to make room for innovation. The barriers to entry are high, but the potential for meaningful partnerships is even higher. Would love to hear from others in this space: What’s been your biggest challenge in building an InsurTech, and how did you overcome it? #InsurTech #Startups #CapacityChallenges #Entrepreneurship #InsuranceInnovation #wearecareless #hasslefreecoverformodernhumans

Last week I was glad to be on stage at the Swiss InsurTech event to outline the current state of insurance innovation. The event gathered insurance players and startups from the Swiss market (and beyond). It was a great opportunity to share views on the state of insurance innovation. And my own talk was focused on that topic, detailing the three major trends on the market: 1️⃣ Yes, investments are down, though startups are still exploring every parts of the market 2️⃣ But actually, there’s a massive shift in business models and the new wave of startups has little in common with InsurTech 1.0 3️⃣ And beyond, new challenges are popping out in front of the insurance industries: emerging risks. This is probably the next wave of insurance innovation ! The latest two points resonate a lot with the pitch session. Pure InsurTech players were rather developing tech solutions for incumbents and more than half of startups were beyond InsurTech, tackling climate risks or operating in the cyber security space. This line-up was a great way to illustrate that insurance innovation is still vibrant but that it has little to do with the first wave of InsurTech (as a reminder this one was highly concentrated in full-stack and B2C players). In addition, it was great to listen to my dear friend Sabine VanderLinden who shared insights on corporate venturing. She highlighted this is an opportunity incumbents should consider alongside other innovation initiatives (Venture Capital, startup startup studio, etc). This is also a way for insurance corporates to explore opportunities beyond pure InsurTech players as there are many tech trends which could benefit the insurance industry. Our portfolio company ClaimsCarbon was also on stage. Its co-founder Markko Waas detailed how their SaaS solution is helping 11 insurance players with CO2 accounting as the CSRD is coming into force early next year in Europe. Last but not least, a warm thank you to Silvia Signoretti and Brijesh Luthra leading the Swiss InsurTech Hub for such a great day of work & networking in Zurich ! #insurance #insurtech #venturecapital 

“If you come to us, you spend time filling out the application, we should offer you a price.” —Sofya Pogreb, COO, Next Insurance The follow up to the best-seller "The Future of Insurance: From Disruption to Evolution, Volume I. The Incumbents," by Bryan Falchuk. The second volume features the first-hand journeys of 8 InsurTech startup insurers so we can learn and grow. Get the #1 New Book in Insurance from Amazon and at https://lnkd.in/ekWrTBhv #insurtech #insurance #startup #innovation #disruption #insurancebook

“If you come to us, you spend time filling out the application, we should offer you a price.” —Sofya Pogreb, COO, Next Insurance The follow up to the best-seller "The Future of Insurance: From Disruption to Evolution, Volume I. The Incumbents," by Bryan Falchuk. The second volume features the first-hand journeys of 8 InsurTech startup insurers so we can learn and grow. Get the #1 New Book in Insurance from Amazon and at https://lnkd.in/ekWrTBhv #insurtech #insurance #startup #innovation #disruption #insurancebook

“If you come to us, you spend time filling out the application, we should offer you a price.” —Sofya Pogreb, COO, Next Insurance The follow up to the best-seller "The Future of Insurance: From Disruption to Evolution, Volume I. The Incumbents," by Bryan Falchuk. The second volume features the first-hand journeys of 8 InsurTech startup insurers so we can learn and grow. Get the #1 New Book in Insurance from Amazon and at https://lnkd.in/ekWrTBhv #insurtech #insurance #startup #innovation #disruption #insurancebook

“If you come to us, you spend time filling out the application, we should offer you a price.” —Sofya Pogreb, COO, Next Insurance The follow up to the best-seller "The Future of Insurance: From Disruption to Evolution, Volume I. The Incumbents," by Bryan Falchuk. The second volume features the first-hand journeys of 8 InsurTech startup insurers so we can learn and grow. Get the #1 New Book in Insurance from Amazon and at https://lnkd.in/ekWrTBhv #insurtech #insurance #startup #innovation #disruption #insurancebook

“If you come to us, you spend time filling out the application, we should offer you a price.” —Sofya Pogreb, COO, Next Insurance The follow up to the best-seller "The Future of Insurance: From Disruption to Evolution, Volume I. The Incumbents," by Bryan Falchuk. The second volume features the first-hand journeys of 8 InsurTech startup insurers so we can learn and grow. Get the #1 New Book in Insurance from Amazon and at https://lnkd.in/ekWrTBhv #insurtech #insurance #startup #innovation #disruption #insurancebook

Thrilled to share we've been named one of the 50 Most Innovative Startups by CBInsight.com! The Insurtech 50 are selected based on several factors in business strength and innovation. It's an honor to be recognized alongside other innovators breaking the mold in insurance. https://lnkd.in/gn3_f8yb #insurtech50 #cbinsights #insurance #truckinginsurance #insurtech #commercialinsurance