FT Partners has released their year-end review of the InsurTech sector, and US financings more than doubled the previous $1.5 billion from 2017, reaching $3.3 billion in 2018. However, the number of financings remained relatively constant.
Interestingly, the number of sub-$5m rounds was lower in 2018 than either of the previous two years, possibly suggesting: 1) there are fewer start-ups being launched / successfully raising seed capital, or 2) those that are launching are able to raise bigger rounds.
There was also a jump in the number of $50m+ "breakout" financings. There were more rounds of this size in 2018 than in the previous two years combined, further showing that InsurTech start-ups are starting to gain significant traction and attract large checks from investors.
Just two companies were responsible for raising nearly half of all sector dollars globally: Oscar Health raised $940m across three different rounds and the UK's BGL group raised $890m.
2018 was a record year for InsurTech globally, with $4 billion invested in the sector across nearly 200 financings, up $850 million over the previous record level in 2017