How to retain life and health insurance customers & Global InsurTech market rebounded in Q3 as average deal value tripled
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Customer retention is a critical focus for life and health insurers, who must now navigate an evolving market landscape characterised by increasing customer expectations. Providing personalised experiences, streamlining claims processes, and implementing wellness programmes are all essential strategies that insurers can leverage to enhance customer engagement, reduce churn, and foster long-term loyalty. Digital health engagement platform dacadoo offers up some ideas as to how life and health insurers can retain their customers.
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Research Highlight
Global InsurTech market rebounded in Q3 as average deal value tripled
In Q3 2024, the global InsurTech sector saw mixed results in terms of deal activity and funding. Only 53 deals were recorded during the third quarter, marking a 49% decline compared to the 104 deals completed in Q3 2023.
Despite the drop in deal numbers, InsurTech companies raised $2.38bn in Q3 2024, representing a 55% increase from the $1.53bn raised in the same quarter last year. If this trend continues, the projected total for deal activity in 2024 would be around 208 deals, a notable 33% decrease from the 312 deals completed in 2023.
The average deal value in Q3 2024 stood at $44.8m, which is triple the size of the average deal value in Q3 2023 which was $14.7m.
However, this funding figure is skewed a $1bn funding round raised by Sedgwick, a global leader in claims management, loss adjusting, and tech-enabled business solutions.
Removing this outlier, third quarter funding would be approximately $1.38bn, resulting in an average deal size of $26m, which, while still higher, reflects a less extreme 77% increase from Q3 2023’s.
As mentioned, Sedgwick secured the largest InsurTech investment of Q3 2024 with a strategic $1bn equity commitment from Altas Partners.
This investment, part of a transaction valuing Sedgwick at approximately $13.2bn, brings in Altas alongside current major investors such as Carlyle and Stone Point Capital, reinforcing Sedgwick’s growth trajectory.
Known for its innovative claims-handling platform and expansive service offerings, Sedgwick manages millions of claims across casualty, property, marine, and benefits sectors annually.
The partnership with Altas is poised to bolster Sedgwick’s international expansion, technological advancements, and operational resilience, reinforcing its position as a pioneering force in the InsurTech landscape.
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