InsurTech Venture Funding and Partnership Trends in Q1-2022
With digital transformation more important than ever, expect emerging technologies to take a leading role in 2022’s InsurTech startups. AI, machine learning, and intuitive cybersecurity have all been highlights of ventures going through Series A funding rounds in early 2022. Disruptive technologies are changing the way insurers deal with clients of all sizes. Innovative products have to be more than just gimmicks; they have to stand out in a rapidly growing marketplace, and have to show how they’re being socially and environmentally responsible. Let’s take a look at some of the most exciting trends for InsurTech so far in 2022.
Cyber Risk Management InsurTech Partnerships
With cyber incidents on the rise, in part fueled by the war between Russia and Ukraine, adaptive and effective cybersecurity for insurers and users of their digital platforms has never been more critical. Even traditional insurance brokers recognize this, as seen in the extended partnership between Howden Broking and cyber experts, KYND. KYND offers a range of cyber risk management options, including the InsurTech-specific propositions of KYND Signals and KYND Ready. These products empower insurance organizations to help their clients assess risks and act accordingly – particularly in the light of a growing number of cyber threats.
Other notable digital partnership extensions include the renewal of links between Sureify/www.sureify.com/, a SaaS provider for life insurance providers, and ForMotiv, a behavioral data science analysis solution designed to provide intuitive digital experiences.
Investment in AI and Machine Learning Powered Solutions
On the heels of tech investments in 2020 and 2021, such as the $10 million Series A funding round for Flyreel or the $21 million Series B funding round for Arturo.ai, 2022 is shaping up to be the year for AI and Machine Learning tech investments. The aforementioned ForMotiv is powered by machine learning, an artificial learning method that allows a computer to analyze patterns of behavior, learn, and make predictions. Machine learning and AI seem to have been at the forefront of successfully funded startups in early 2022. In March, HSCM Ventures led the Series A funding round for Layr, a round that totaled $10 million. Layr provides an AI-fueled cloud-based platform with the goal of digitizing the entire insurance process, particularly small commercial risks. Ultimately, the improved efficiency and replacement of processes such as lengthy manual application forms improves the experience for insurers’ clients, allowing insurers to give a much higher quality of service.
Back at the start of February, $25 million was raised for Tint.ai, an embedded insurance platform. Tint also leverages machine learning, but with this proposition, it’s to help insurers create bespoke products, plans, and programs, and connects insurers to each other to share risks where appropriate. Expect to see more AI and machine learning powered startups getting their next rounds of funding as we head deeper into 2022.
Disaster Conscious InsurTech Propositions
With the recent and ongoing pandemic situation driving digital transformation at an unprecedented rate, it’s no wonder InsurTech ventures are embracing emerging technologies to get ahead of this curve. But the pandemic has had a secondary effect: it’s inspired some digital insurance companies to create products with the unknown in mind, planning for potential disasters and critical situations. Descartes Underwriting is an InsurTech organization with a focus on corporate insurance solutions that can address the threats of large-scale emergencies such as climate change, pandemics, and other natural catastrophes. At the end of January, Highland Europe led a Series B round of funding to the tune of $120 million. The success of this round of funding perhaps points to the industry moving into a state of preparedness and assessing risks at a more global level. Descartes uses AI to analyze emerging risks and create appropriate products for larger insurers and their clients. This latest round of funding firmly stabilizes their reputation as category leaders in corporate insurance.
More mindful insurance products could become more visible in the market as investors take on board shifting trends in public perception of corporations and their social responsibilities. Another recently funded InsurTech company was Foresight Group. Their focus on workers’ compensation aims to actually reduce worksite incidents and provide employees with safer work environments. They work directly with Safesite, a risk management platform, and together they’ve reduced the frequency of policyholders’ work safety incidents by around 31%. This impressive statistic secured them $39 million in their latest round of funding.
Final Word
Clearly, InsurTech propositions are only going to get more innovative and disruptive as the year continues. A recent report indicated that the global embedded insurance business is set to grow by 31.9% year on year until at least 2029. InsurTech is at the forefront of that growth, so ensuring you have a great marketing strategy in place now is the best way to successfully ride that wave of success. If you want to learn more about getting your InsurTech venture in front of the right people, book a 15-minute introductory call with our highly focused marketing team who can pair you with the right freelancer for your product or service.
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