Note from the Publisher: We posted a story earlier this week about the Top Ten Fintech VC Deals of 2016. In it, we noted that three of those top ten deals were InsurTechs. When we launched FintekNews in early July, we felt certain this sector would see a rise in VC investment this year, and it has now been reported that 47 of 74 fintech VC deals that have been completed thus far in 2016 are within the InsurTech sector.
“Funding for insurance technology startups is outpacing the sector as a whole, according to industry analysis.
So far this year, the insurtech sector, which includes companies creating new underwriting, claims, distribution and brokerage platforms, as well as enhanced insurance-specific, customer-experience offerings — has seen 47 venture capital investment deals totaling $1 billion, compared to 74 deals totaling $2.5 billion in 2015, according to “Pulse of Fintech,” a quarterly global report from KPMG International and CB Insights that explores equity transactions to venture capital-backed financial-technology companies.
That’s despite the fact that for the fintech sector as a whole, deal activity fellin Q2, hitting a five-quarter low in the United States with just 97 deals, compared to 130 in Q1.