Some people make New Year’s Resolutions, but even with the best intentions don’t make it past March. Others create a vision board to hang in their bathroom that gets marked up with your latest skincare regime. At InsurTech NY, we decided for 2024 the safest thing we can do is to reflect on 2023. No letdowns and no mess.
Since it will be our second full year of being an investor, we reviewed data on the state of 2023 new investments in InsurTech. We reached out to 20 InsurTech investors and asked them two questions; How many new investments did you make in 2023? How many partners are in your fund? Here is what we found (data updated to mid-Oct):
11 of the 20 Funds allowed to publish their data individually. You can see the specific data points on our website: InsurTech VC Reflections.
Now if you are like us, you probably want to make 2024 better than 2023. To that effect, we are launching our 5th global early-stage startup competition to raise awareness for the next crop of InsurTechs and create investment opportunities for InsurTechs (Carriers + VCs do the judging).
If you want exposure for your start or have a friend who is pre-seed, please help us get the word out about the competition to make 2024 a better year for investment.
Competition details: www.insurtechny.com/competition
Contestants will gain access to a prize pool of $200,000 in value, exposure to 10+ early-stage investors and insurance leaders, and have the chance to present in front of 400+ InsurTech influencers live in New York. Applications are open until Feb. 5, 2024.
We are excited to announce that we have secured three of the most successful InsurTech CEOs to speak about journeys and their path to profitability at our InsurTech Spring conference on March 20-21. Come join us to hear:
Learn more and register at: https://www.insurtechny.com/
InsurTech Spring Conference [Fast Mover Special if booking in January] Mar 20-21 | 2 Days | Pier 60
– 1000+ influencers, 100+ speakers, 10 startup presentations, + expo hall
InsurTech Slopes USA Jan 31-Feb 1 | Big Sky, MT
– Founder and Investor program. Past partners attended from: AmFam, Anthemis, Altamont, Cameron VC, QBE
Thank you to our sponsors of our InsurTech Spring Conference.
If you are interested in sponsoring a future InsurTech event, send us a note at firstname.lastname@example.org.
Discover a curated mix of InsurTech financings, exits, partnerships, opportunities, and partner events on the East Coast.
InsurTech News and Deals
Partner Events and Programs
See more information and register via our website: www.insurtechny.com/upcoming-insurtech-conferences
Anansi – Strategic Account Manager
Extend – Actuarial Manager
See more information and apply via our blog: https://www.insurtechny.com/jobs
Has the InsurTech NY community helped you make a lasting connection? Do you want an opportunity to get your brand out there? Show your support for InsurTech NY by sponsoring our Spring Conference on March 20-21. To learn more or request information reach out to email@example.com.
Explore exciting career opportunities in carrier/broker innovation roles and venture teams, as well as collaborations with InsurTech partners.
If you’re interested, please consider applying directly through the links provided for the specific roles, or reach out to us with additional questions or inquiries:
Anansi – Strategic Account Manager – https://withanansi.com/careers-at-anansi/#current-openings
Extend – Actuarial Manager – https://boards.greenhouse.io/extend/jobs/5024063004
Lockton – Personal Risk (High Net-Worth) Sales Executive – https://careers.lockton.com/pacific/en/jobid/2300l1
Gallagher – Client Service Positions – https://jobs.ajg.com/ajg-programs
At InsurTech NY, we serve as a bridge connecting talented individuals with thriving carrier/broker innovation roles within our network. Whether you’re passionate about innovation, partnerships, or venture capital, our carrier/broker partners have diverse positions available for you. For any questions or inquiries, feel free to reach out to us at firstname.lastname@example.org.
By David Gritz and Camila Faria
As 2023 comes to a close, it’s safe to say that the InsurTech investment landscape underwent a significant transformation this year, reflective of broader shifts within the tech and insurance industries. Amidst a backdrop of global economic recalibration, venture capital infusion into InsurTech startups witnessed a discernible contraction, marking a departure from the previously bullish years. This year’s investment climate, while cautious, has not dampened the innovative spirit that drives the sector forward, and strong startups continued to receive support while strengthening strategies to optimize costs.
Many founders have asked us in 2023, did investor pacing slow down? So, we tapped our network to get you access to the live data. And, we will use that data and our discussions with VCs in InsurTech to help you understand why and where we are going in 2024.
The insurtech sector of 2023 has been a crucible of challenge and change. Investment patterns have taken a sharp detour from the exuberant heights of previous years, as highlighted by a report by Dealroom.co, Mundi Ventures, MAPFRE, NN Group, and Generali. A 45% plummet in venture capital funding to $2.4 billion in the first half of the year marks a retreat not seen since 2018. This mirrors a broader 51% decline in overall venture capital funding, signaling a reevaluation of investment strategies across the board.
Despite the downtrend, the resilience of “good” startups, as noted by Mapfre’s global head of transformation, Joan Cuscó, is evident in their ability to secure capital. This selective endurance reveals a pivotal theme of 2023 — quality over quantity.
Despite funding headwinds, the sector’s commitment to digital transformation and enhanced customer experience remains unshaken. Insurers continue to embark on core systems upgrades, making it easier for InsurTechs to work with them. And, almost any life insurer you speak to is looking for new forms of distribution to close the uninsured and underinsured gap. Distribution-centric startups continued to attract interest from investors as long as they could prove traction.
Most reports on InsurTech are published with secondhand data from CB Insights and Crunchbase that is not 100% validated. So, we decided to contact the VCs directly for the data after an initial review of Crunchbase and their websites.
For our research, we contacted 20 Venture Capital firms that explicitly have InsurTech investing as part of their strategy or are primarily funded by single insurer LP. 18 of the firms shared their data with us and 11 allowed us to publish their data. The data is current as of January 10, 2024.
The data below shows the number of new investments (excluding follow-ons) per partner
InsurTech NY’s examination of top VC funds pacing in 2023 unveils a landscape of discernment and precision. Most funds focused on supporting their existing portfolio companies to get them to default alive status instead of funding the next wave of startups.
Markd‘s pronounced increase in investments illustrates a bold and strategic assertion of confidence in the industry’s potential. In contrast, other seasoned investors like Munich Re Ventures and Nationwide Ventures have recalibrated their portfolios, indicative of a broader investment community treading with caution as funds are increasingly seeking out ventures that not only innovate but also demonstrate a clear path to profitability and scalability.
The consistency from firms such as Sure Ventures, which neither increased nor decreased their investment frequency, reflects a considered approach in an unpredictable market. Looking back on the year’s trends, partner Gopi Rangan commented, “Insurance is a large industry with many opportunities for innovation. Unlike in the years past, startups with healthy unit economics will build a strong foundation to transform the industry. I am excited to see many positive trends in the upcoming year ahead.”
The data reflects that InsurTech Fund, our fund was the third most active on a per partner basis. While it may seem like an anomaly, it is directly in line with our strategy to support 5 – 8 new startups per year from our fund. Since we sit in the seed stage, we must act as a feeder for many of the later-stage funds and our pacing reflects that trend.
Forecasting 2024: Expectations and Opportunities
We are also excited about positive trends in 2024. We are looking forward to the next generation of Insurance products in niche and specialty markets like those who have gone through our MGA Lab. Parametric solutions like Sola and Otonomi can simplify cover; cat-exposed solutions like Greenshield Risk and SPIN can support policyholders in states where larger insurers have left the market; and new category solutions like Batteryze and 5×5 can expand or enable commercial markets to function. This trend for new products will coincide with deeper integration with big data, AI, and predictive analytics to improve risk selection and workflow automation.
With all of the opportunity ahead of us, we see Venture Capitalists pivoting in 2024 to make new investments once their current portfolio is protected.
If you are a founder who is actively raising money in Q1, we want to hear from you about your experience. Happy to add your experience or quote to the bottom of this article. Please respond to our LinkedIn Post or reach out at email@example.com.