In 2017, we expect to see several interesting M&A deals made by largest traditional insurance companies. In comparison to banking, Insurance value chain is split among many companies. As a result insurers became really active in terms of innovation, trying to work and cooperate with InsurTech startups at the beginning of their growth – that is why investments and acquisitions from them are just a matter of time.
InsurTech is a relatively new industry. However, it’s developing quite fast and becoming one of the most booming verticals in the FinTech space. First of all, don’t pay too much attention to the 34% drop in the InsurTech market in 2016; it actually grew up by 25% considering the number of deals. The year 2015 showed an abnormal rise in the InsurTech market, which was mainly driven by Chinese large and extra-large deals, including $1B USD invested into the world’s largest InsurTech startup Zhong An. Today, the market consists of about 1400 InsurTech companies; however, the launching tendency is decreasing. While in 2015, almost 300 companies were launched; in 2016, we see a 40% decrease in this number (about 180 new startups).