European Insurtech 2022 report: insurtech is well alive

The insurance industry is undergoing major transformations, and insurtech is playing an increasingly important role in guiding and facilitating these changes. While the funding environment has cooled off from the 2021 high, the industry still offers great opportunities for investing as the insurtech ecosystem continues to develop and innovate.

To better understand these changes, Dealroom has put together “The State of European Insurtech 2022 report” a comprehensive overview using open-access data and qualitative insights to analyse the current state and trends of European and global insurtech.

Developed by Dealroom.co, Mundi Ventures, MAPFRE, and NN Group, this in-depth report draws on our partners’ collective insurance innovation expertise and insights from insurtech innovators and leaders.

Report - The State of European Insurtech 2022

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Overview of the insurtech ecosystem.

Europe posted its second best quarter ever in Q1 2022, with $884M in funding, and is closing the gap with the US, which saw the strongest pullback. Zooming in on Europe: UK, France and Germany still heavily dominate the insurtech scene in Europe, attracting more than 90% of the region’s funding.

European insurtech funding

The combined EV of European Insurtech companies is now $39 billion, 9.7x times more than in 2016.

Insurtech is young, but there’s more disruption to come.

Insurtech funding has slightly cooled off, mostly at late stage, but there is a $6 trillion opportunity still to unlock. Insurtech startups are heavily underinvested compared to peers targeting industries of similar market size like fintech, health and mobility.

Insurtech is still heavily underfunded compared to industries such as fintech, mobility and health

Late stage funding slowing down, but strong at early and medium stages.

Global insurtech funding has pulled back almost 50% in Q1 2022 compared to all-time-high in Q3 2021. Looking at Q2 of this year, we’re back to pre-pandemic levels. The pullback in funding has been mainly due to megarounds, while the number of early and medium stage set a new record in Q1 2022.

Insurtech funding has slowed down at late stagem, but early stage funding is stronger than ever

Unicorn creation has also slowed down significantly. There are now 63 insurtech unicorns globally, with only 6 created so far in 2022 compared to 26 in 2021.
Insurtech M&A also keeps going strong, reaching record levels in Q1 2022, while public listings have slowed down amid the broader market downturn and bad performances of public insurtechs.

How insurance will cover climate change in the future.

Climate change brings global risks both in the short and long term. The transition to net-zero is a top agenda for insurers and insurtech companies.

The UN-convened Net-Zero Insurance Alliance (NZIA) is a group of over 24 leading insurers representing more than 11% of the world premium volume. Members of the alliance are currently making commitments toward net-zero emission insurance and reinsurance underwriting portfolios by 2050. Additional commitments: net-zero emission investment portfolio by 2050 and invite other relevant climate-action initiatives (e.g. Net-Zero Asset Owner Alliance) to join.

Climate risk dominate global risks both in the short and long term

The silver economy is in the prime of its life.

Europe’s senior population (65+) will reach 130 million by 2050, providing an excellent opportunity for elder-targeted products and services. Remote patient monitoring, telemedicine, and wearable devices such as smartwatches can make virtual healthcare a reality in an increasingly technologically driven society, particularly for those suffering from chronic conditions.

Silver economy startups raised $1.2B globally, especially for European insurtech

In 2015, EU-27 households with a person aged 60 years or more tended to spend proportionally more of their expenditure on health (42% higher than the average share for all households).

Since 2016, senior support startups have raised $1.2 billion globally, and series B+ rounds become more typical as the sector matures. Day-to-day care services and products are benefiting the most from the silver economy, receiving almost $500 million since 2016.

Download “The State of European Insurtech 2022 report” to discover more 👇

Report - The State of European Insurtech 2022

Get the complete report