Following the August announcement of the FINEOS acquisition of Limelight Health and PE acquisition of Majesco, Q4 has already become red hot with InsurTech deals. A short timeline of deal announcements highlights the trend:
- Oct 6: Bold Penguin acquires RiskGenius
- Oct 6: Clover Health merges with Social Capital Hedosophia Holdings to go public
- Oct 7: Claim Central Consolidated acquires Livegenic
- Oct 28: Root raises $724 million in its initial public offering
- Nov 6: Insurity acquires CodeObjects
- Nov 9: Brown and Brown acquires CoverHound and CoverPolicy
- Nov 17: Advisen acquires Zywave
Analyzing the recent acquisitions, it is clear the strength of the market is multi-dimensional. From a traditional M&A perspective, Brown and Brown’s acquisition doubles down on the trend started by Prudential and Aon that carriers and brokers are looking to acquire new paths for distribution. Likewise, traditional insurance vendors like Insurity demonstrate that the market for product extensions for service providers is a viable exit route for startups.
Meanwhile, it is the public market and InsurTech consolidation trend that is new and most exciting. There now exists a crop of InsurTechs with cash flow and balance sheets that make it possible to consolidate with other InsurTechs. Bold Penguin is less than five years in the market. Likewise, Root is only in its fifth year and now a public company. In fact, according to Tushar Virmani from JP Morgan, in his presentation in our accelerator, at least 15% of the tech IPOs this year are InsurTechs.
Investors can now have the confidence to place bets on InsurTechs knowing that a liquidity event can take at least five paths: insurer acquisition, tech provider acquisition, InsurTech acquisition, SPAC to the public market, or IPO.
In 2021, InsurTech NY plans to continue to highlight InsurTech deals and bring the founders who made it to exit to our panels and discussions.
Upcoming InsurTech Events and Programs
Emerging Technologies in Insurance: AI, RPA, IoT (Register at early-bird discount)
Dec 10 | 1PM – 3PM Educational Content and 3PM – 5PM Networking | Fully Virtual
– 2 Panels, 2 Ted Talks, 2 Hours of Networking
– Featuring: Allstate RPA leader and E2Value CEO
InsurTech NY Sponsors
Thank you to our sponsors for supporting the community: EIS, E2Value, Eversheds Sutherland, and EY.
InsurTech New York Area Deals and Opportunities
Discover a curated mix of early November insurance financings, exits, partnerships, and opportunities in the New York area.
- Lightico ($14M, Oxx VC) Multi-Line: Platform to help digitally collect forms, signatures, documents, and payments.
- Assurely ($3M, ATX Ventures) Commercial Lines: Embedded Insurance-as-a-Service platform for alternative distribution channels of commercial insurance.
- Fabric ($18M, CNO Financial) Life Lines: Direct to consumer life insurance platform bundled with a platform to create a will and organize financial documents.
BTV Accelerator (Applications open until Nov 30): Accelerator that brings broker-centric InsurTech startups together to provide seed-funding, a hyper-accelerated curriculum, and direct access to our Agency & Non-Agency Mentor circuit.
Interested in Volunteering?
InsurTech NY is actively looking for individuals looking to connect deeper into the InsurTech community. We are looking for a writer interested in helping us research trends related to our upcoming December event. If you are interested, email us at firstname.lastname@example.org.