2021 was a historic year for investment in insurtechs. Funding reached a record-breaking $15 billion in Q3, according to Forrester ‑ more funding than in 2019 and 2020 combined. As this booming market evolves, the value of innovation by insurtech startups is becoming clear.
These companies drive change by meeting customer demands, as consumers increasingly demand insurance is delivered in a way that suits them ‑ digital services that are quick and easy to use.
The record investment is partly being driven by major insurance companies that are struggling to innovate their operations and services. Bigger businesses tend to find innovation more challenging than smaller, agile companies.
Adaptability is now key, and startups can move extremely quickly compared to large corporations, which gives them a huge competitive advantage.
In addition, the COVID-19 pandemic encouraged an acceleration of digitization across many industries, which has played into the hands of both startup and scale-up insurtechs and their clients.