The changing face of health insurance & UK dominated European InsurTech deals as funding in the region increased by 17% in H1
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Health insurance plays a critical role in safeguarding individuals and families from the financial burdens of medical expenses, offering essential coverage and peace of mind during times of illness or injury. Traditionally, the industry relied on complex and rigid models, often burdened by lengthy paperwork, slow claims processing, and fragmented communication. However, the health insurance market is projected to reach a remarkable $2.38tn in gross written premiums by 2024, according to Statista. This comes amidst a significant shift towards digital platforms and telemedicine services.
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UK dominated European InsurTech deals as funding in the region increased by 17% in H1
In H1 2024, the European InsurTech sector recorded 35 transactions, reflecting a sharp decline of 42% from the 60 deals completed during the same period in 2023 and a 27% drop from the 48 funding rounds in H2 2023. Despite the reduced deal flow, total InsurTech funding in H1 2024 amounted to $1.16bn, representing a 6% decrease from the $1.24bn raised in H1 2023 but an 17% increase from the $992m raised in H2 2023. This suggests that while the number of deals has fallen significantly, there is still substantial capital being invested, particularly in larger funding rounds, signalling ongoing investor’s interest in the sector.
The top 10 deals in H1 2024 were distributed across six countries, with the United Kingdom dominating the list with five deals, compared to just three in H1 2023. Germany, which had three top deals in H1 2023, saw a decrease to two in H1 2024, while Spain maintained a presence with one deal across both periods. Notably, new entrants such as France and Cyprus appeared on the list in H1 2024, replacing The Netherlands, Switzerland, and Sweden, which were present in H1 2023. This change indicates a shifting landscape in European InsurTech, with the UK solidifying its lead while other countries experience fluctuations in deal activity.
Element, a German based InsurTech startup offering white-label insurance products, raised $54m from Versorgungswerk der Zahnärztekammer Berlin K.d.ö.R. and Alma Mundi, marking it the largest funding round in the German InsurTech market for the first half of the year. Founded in 2017, Element is a cloud-based InsurTech startup licensed by the German Federal Financial Supervisory Authority (BaFin) as a direct insurer for non-life insurance. The company provides white-labelled insurance products that clients market under their own brand. Element aims to become the first choice for Managing General Agents (MGAs) and reinsurers across Europe by leveraging its data-driven primary insurance capabilities. Licensed and approved in all European countries, Element supports MGAs throughout the EU, ensuring comprehensive and economically viable risk coverage through its integrated reinsurance panel, which matches MGAs with optimal reinsurance capacity providers.
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