Insurtech - Thematic Intelligence

Insurtech - Thematic Intelligence


The insurtech industry witnessed a period of robust growth in 2020 and 2021, characterized by substantial company valuations that were supported by both public and private funding. However, the scenario shifted in 2022 and 2023 as rising interest rates and economic challenges led to a more restrained investment environment. This reduced investors’ eagerness to participate in insurtech activities. Meanwhile, the role of AI gained prominence within the insurance space, driving technological advancements. The effect of the insurtech phenomenon on the wider insurance industry is clear to see. New-age technologies and processes involving AI, the Internet of Things, and big data have been championed by startups, forcing incumbents to react and match the efficiencies these tools have brought.

In 2023, the insurtech industry faces a mixed investment landscape. Despite a decline in the number of completed deals compared to 2022, the value of investments is on track to exceed last year's levels, signifying larger investments are being made. Economic uncertainties have contributed to this cautious approach, with the sector experiencing challenges from high inflation and geopolitical tensions. However, signs of recovery are evident, with venture funding bouncing back in Q1 and Q2 from the lows of 2022. Notably, artificial intelligence (AI) adoption has become a pivotal trend, empowering firms to streamline operations and improve customer experiences. Recognition among consumers and SMEs is growing, which could drive future investments (although established players still dominate recognition in the market). Overall, the insurtech sector navigates a dynamic landscape, responding to economic fluctuations and technological shifts to shape its trajectory in 2023.

  • GlobalData’s Deals Database indicates that the number of completed deals in the insurtech theme by mid-June 2023 was at just 47.6% of the whole of 2022. On the other hand, the value of investments is expected to surpass 2022's levels, standing at 96.4% of 2022's value as of mid-June 2023.
  • Marmalade is the most well-known brand in the UK among popular insurtechs. However, just 14.4% of consumers indicated that they had heard of the company.
  • As per GlobalData’s 2023 UK Commercial Insurance Broker Survey, 10.4% of brokers are aiming to grow their business over the next 12 months by partnering with insurtechs to improve product breadth. This represents a 4.4 percentage point increase compared to 2022.
Reasons to Buy
  • Identify leaders in the insurtech space across a variety of disciplines.
  • Determine how leaders use modern technologies to drive efficiency and reach new customers.
  • Recognize how incumbents are collaborating with insurtechs to improve their own product offerings and customer experience.
  • Evaluate the strength of investment into the insurtech theme and ascertain the drivers behind this level.

Executive Summary
Technology Briefing
Generative AI and ChatGPT
Big data
Technology trends
Macroeconomic trends
Regulatory trends
Industry Analysis
Market size and growth forecasts
Investment in insurtech remains far lower than the levels seen in 2021
Uncertain economic conditions have reduced investors' appetite for risk
A mixed landscape reflects the diverse nature of the insurtech industry
Deals in key tech themes are bouncing back in 2023
Consumer recognition can impact investment prospects for insurtechs
Brokers are increasingly planning on partnering with insurtechs
Mergers and acquisitions
Venture financing
Use cases
Insurtechs can aid insurers in fraud detection and risk mitigation
AI can create big wins for insurers
Insurtechs are harnessing data from connected devices and wearables
Insurtechs are helping traditional incumbents modernize and update
Insurtechs are using modern technologies to offer cyber insurance
Insurtechs are best placed to provide personalized insurance products
Embedded insurance allows insurtechs to target customers directly
Value Chain
Product development
Marketing and distribution
Underwriting and risk profiling
Claims management
Customer service
Sector Scorecards
Life insurance sector scorecard
Who’s who
Thematic screen
Valuation screen
Risk screen
Non-life insurance sector scorecard
Who’s who
Thematic screen
Valuation screen
Risk screen
Further Reading
GlobalData reports
Our Thematic Research Methodology
About GlobalData
Contact Us
List of Tables
Table 1: Technology trends
Table 2: Technology trends
Table 3: Technology trends
Table 4: Mergers and acquisitions
Table 5: Venture financing
Table 6: Disruptors
Table 7: Collaborators
Table 8: Glossary
Table 9: GlobalData reports
List of Figures
Figure 1: Who are the leading players in the insurtech theme, and where do they sit in the value chain?
Figure 2: Insurtech deals in 2023 see a decline in volume but a likely increase in value
Figure 3: The value of completed venture funding deals are beginning to bounce back in 2023
Figure 4: While some insurtechs have demonstrated strong performance on the NASDAQ, others have faced challenges over the last 12 months
Figure 5: The value of overall investments into key themes is increasing in 2023 but remains far lower than the peak in 2021
Figure 6: Insurtech companies are gaining traction and earning greater recognition among consumers
Figure 7: The brand recognition of insurtechs among SMEs is falling, with Vitality and Next Insurance leading
Figure 8: Lemonade utilizes AI chatbots to enhance the customer experience
Figure 9: Flock provides telematics insurance for motor fleets
Figure 10: The insurtech story
Figure 11: The insurance industry value chain
Figure 12: Who does what in the life insurance space?
Figure 13: Thematic screen - Life insurance sector scorecard
Figure 14: Valuation screen - Life insurance sector scorecard
Figure 15: Risk screen - Life insurance sector scorecard
Figure 16: Who does what in the non-life insurance space?
Figure 17: Thematic screen - Non-life insurance sector scorecard
Figure 18: Valuation screen - Non-life insurance sector scorecard
Figure 19: Risk screen - Non-life insurance sector scorecard
Figure 20: Our five-step approach for generating a sector scorecard

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