LONDON — More than £200 million has been invested into UK “InsurTech” — insurance technology startups — so far this year amid a flood of interest from investors, according to new figures from Accenture.
The consultancy said on Friday that £218 million has been invested into InsurTech businesses in the first half of 2017, according to an analysis of figures from venture capital tracking company CB Insights. That’s up from just £7.8 million of investment in the first half of 2016, representing a 2695% jump.
Roy Jubraj, Accenture’s Digital & Innovation Lead for Insurance, said in a statement: “2017 is looking like the year of UK insurtech, with a dramatic increase in investment and deals in the last 12 months.”
The figures are bulked up by a blockbuster £180 million investment in startup Gryphon Insurance in June. However, even when this deal is stripped out UK InsurTech investment activity rose by 422% in the first half of 2017.
Jubraj says: “Europe overall is gathering momentum, with the UK topping the table and confirming its place as a global hub for insurtech.”
Earlier this week well-known Silicon Valley investor Peter Thiel led a $US10 million seed investment into Berlin-based digital insurance startup Coya, signalling increasing global interest in European “InsurTech.”
Unheard of a few years ago, InsurTech has become one of the hottest areas of investment for venture capitalists over the last 18 months. Inspired by the success of fintech startups, investors and entrepreneurs are keen to take on the paper-heavy world of insurance and bring it into the digital and mobile age.
Jubraj says: “The explosion of data made available by an increasingly connected world is bringing unprecedented change and allowing modern insurers to understand customers and create personalised, dynamic relationships with consumers.
“Investors can see the potential in this and are backing efforts to unlock the value of technologies. That is why we are seeing deals that range from an app for buying short-term car insurance to a connected home solution that complements home insurance policies.”
Accenture says that London is the “undisputed centre for European insurtech investment with 30% of all deals in the continent taking place in the city.” London is home to global insurance market Lloyd’s of London and has long been an international hot spot for insurance. Berlin and Paris are the next biggest hubs for InsurTech investment, Accenture says.
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