COVID effect: Insurtech deals soar during January-July, 2020
“Technology-enabled models have aided customer communication including educating the need and the type of products available within insurance, beyond just life insurance — medical insurance, vehicle insurance, accident insurance, property insurance, others,” said Pankaj Raina, Managing Director, Research and Investments, Zephyr Peacock India.
Raina added, “Growing awareness about benefits of insurance, ability to compare, better communication and competitive pricing have contributed to the growth of insurtech user base. This, in turn, is a big validation for any investor.”
Click here to read the full article on ‘Business Line’
Below is an excerpt from the post which first appeared on Business Line on 19 August 2020:
The number of deals bagged by insurtech start-ups surged in the January-July period of 2020, even as the overall funding took a hit due to Covid-19. According to a Nasscom report titled ‘Reviving the Indian start-up engine during COVID-19’ that analysed the impact of the pandemic in India, nearly 65 per cent start-ups witnessed reduction in funding.
But the insurtech sector in India paints a rather positive picture. The sector encompasses insurers, insurance aggregators and companies that create software and analytics in the space.
The number of deals bagged by insurtech start-ups in the January-to-July period in 2020 stood at nine, the highest in the last six years, according to data from Venture Intelligence, a firm that tracks private companies’ investments, financials and valuations. The funding figures also do not disappoint. A total of $186 million was invested in eight companies this year during the period, 66 per cent higher than the $112 million invested in six companies during the same period last year.
