While global insurtech investment slid by nearly half to US$5.7 billion in 2018, the UK saw its insurtechs attract more than US$1 billion of investment last year – an increase from the US$792 million posted by British insurtechs in 2017.
“Claims management and the unbundling of services and processes were magnets for investment through 2018, and I expect that to continue,” noted KPMG UK insurance head Simon Ranger.
“Exciting technologies like AI (artificial intelligence) and machine learning are going to redefine insurance, but it will be almost impossible to see their full potential until firms have dealt with the basics – their data and legacy systems – and that for most is still a work in progress.”
According to KPMG’s The Pulse of Fintech 2018 report, the UK kept its region-leading position in Europe as it accounted for half of the top 10 fintech deals.
“Clearly, the UK has a thriving insurtech sector,” added Ranger. “We are seeing the market mature as fewer, but bigger, deals take place. In line with overall fintech investment activity, insurtech was fuelled by the first half of the year with investment nosediving in H2 (second half).”
Meanwhile Will Pritchett, head of insurtech at KPMG Global, commented: “The UK is positioning itself well as our government and regulators continue to build fintech bridges with Asia, to help reduce regulatory barriers and support growth in a post-Brexit world.”
KPMG said Asia is expected to see substantial growth in insurtech investment in 2019, thanks in part to traditional insurers based in Europe and the US who are looking to use the continent to test alternative insurance offerings.
