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GCA believes Insurance broadly remains resilient through the current environment and the industry’s digital transformation has only accelerated as a result of COVID-19

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Sector Report: Insurance Technology Q2 2020

EXECUTIVE SUMMARY
COVID-19 and the associated economic shut-down has broad implications for the Insurance and InsurTech markets
Market environment has accelerated existing trends working to digitize the Insurance industry:
  • Self-directed purchases of insurance online (e.g., Lemonade)
  • Increased use of digital distribution channels (e.g., SelectQuote and GoHealth)
  • InsurTech upstarts’ broader migration from brokers/MGA model to becoming licensed, full-stack insurers and binding policies (e.g., Hippo, Pie Insurance, Next Insurance, Clearcover)

M&A and growth investment deals are still getting done despite macro headwinds

  • Financings in Q2 2020 (59) were down from the same period in 2019 (72), but the aggregate amount raised increased slightly by ~5% year-over-year
  • $2.5Bn in growth capital raised YTD in the InsurTech space across 140 deals through June 2020
  • M&A activity in Q2 was ahead of Q1 2020 with 21 transactions announced during the quarter

GCA believes Insurance broadly remains resilient through the current environment and the industry’s digital transformation has only accelerated as a result of COVID-19

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