Insurtech start-up deals reached record $1.7bn in 2016
Deals to insurance tech start-ups made last year rose 42% on 2015 to hit 173, while total funding to insurance start-ups amounted to $1.69bn, according to data from CBS Insights. Of 2016's deals, two of every three took place at either seed or Series A funding, climbing 56% on the previous year to reach $508m. Overall, 59% of 2016's insurtech deals went to US-based start-ups, with Hippo Analytics, CoverWallet and Embroker all receiving funding. However, overall annual funding to the space fell 37% between 2015 and 2016.
Two of every three insurance tech deals in 2016 took place at the early-stage.

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Deal activity in the insurance tech space hit its highest annual total in 2016, according to CB Insights data.

In total, deals to insurance tech startups rose 42% on a year-over-year basis in 2016 to hit 173. Total funding to insurance startups in 2016 hit $1.69B, the second consecutive year investment dollars to the space topped $1B. Overall dollars to the space fell 37% YoY between 2015 and 2016, as two separate deals to online HR software firm Zenefits and Chinese online insurer Zhong An Insurance accounted for $1.43B in total funding.

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Early days

Of note, two of every three insurance tech deals in 2016 took place at the early-stage (Seed/Series A). On a year-over-year basis, early-stage insurance tech funding rose 56% to hit $508M in 2016. Early-stage insurance tech deals topped 100 in 2016 and rose 47% YoY. Startups that raised seed or Series A funding in 2016 included Hippo Analytics, CoverWallet, Embroker, Ladder Life, Cape Analytics, Root Insurance, Shift Technology, League, and Estify among others.

Where deals went

Geographically, 59% of insurance tech deals in 2016 went to US-headquartered startups. Germany, the UK, and China all saw 5%+ of insurance tech deals over the twelve-month period.

Deal activity to insurance startups in 2016 was spread among a diverse set of countries from Switzerland to India to Australia, and the United Arab Emirates.

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