Insuranceciooutlook

European InsurTech market is making strides.

Insurance CIO Outlook | Thursday, December 30, 2021

In the first half of this year, European insurtech fundraising hit an all-time high, with over €1.7 billion invested in 52 rounds.

FREMONT, CA: 2021 was a big year for the insurtech in Europe as it succeeded in attaining €1.7 billion in investments through 52 rounds of funding. Also, the mega-rounds  over €100mhappened in three ecosystems- Zego and BoughtByMany in the UK, Alan and Shift Technology in France and Wefox in Germany. As far as the mega-rounds are concerned, Wefox clubbed with BoughtByMany made the biggest rounds contributing to half of the money invested in European insurtech startups. This lifted their status to ‘unicorn status’ along with the other ecosystems. However, each ecosystem follows a separate business model although it is named ‘one’ business line. Another noteworthy feature in full-stack space includes a new startup commenced in France, Germany and Greece with Acheel, Element and Hellas Direct respectively. France, Germany and the UK maintained 95 percent of the money invested in H1 2021. The UK appears to be the most active nation with 16 deals while Germany leads in terms of investment.

In addition to full-stack startups, with 58 percent of rounds, distribution serves to be the most active part of the value chain. Whereas on the product side, more deals with use cases were incorporated. Apart from the 5 mega-rounds, deals maintained an equilibrium with regard to maturity - 14 deals at the seed stage, 20 at an early level and another 13 at the growth stage. In comparison to the review of the previous year of the insurtech investors, there were new players in the field. Right from seed investors to private equity companies leading mega-rounds.

A few new full-stack firms are anticipated to enter the market, as well as a number of fast-growing, direct-to-consumer startups to return, with what should be mega-rounds. Beyond insurtech, more adjacent players are welcome to seek funds in order to speed up the process of delivering insurance to their consumers.

Check This Out : Top Insurtech Startups 2021

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