Investment into UK-based InsurTech firms increased to £218m in the first half of 2017, compared with £7.3m in the year before, according to new research from Accenture.
It shows that this was largely due to one major deal involving Gryphon Insurance, which raised £180m, but even without it, funding was found to have increased by 422% year-over-year.
This comes despite the UK’s decision to leave the EU, with London continuing to be the undisputed centre for European InsurTech investment, with 30% of all deals in Europe taking place in the city.
“2017 is looking like the year of UK InsurTech, with a dramatic increase in investment and deals in the last 12 months,” Accenture insurance digital and innovation lead, Roy Jubraj, said.
“This year the UK witnessed one of the largest global InsurTech deals, which is a strong sign for UK investment and something the UK will be mindful in preserving as we move towards a post-Brexit economy.”
Germany and France also saw strong growth in InsurTech investment during 2017, joining London in the top three cities for funding in Europe, with 33 deals recorded across the continent in the first half of this year.
The top seven cities for InsurTech investment, and their share of funding so far this year is shown below:
Cloud Computing, the Internet of Things and Big Data technologies attracted the most investment into InsurTech in Europe as a whole, with £207m being invested this year in cloud technologies alone.
Jubraj also said that Accenture were now seeing life insurance-related deals, an area which hasn’t typically been poised for disruption before, suggesting that life insurers are at “a big turning point”.
“The explosion of data made available by an increasingly connected world is bringing unprecedented change and allowing modern insurers to understand customers and create personalised, dynamic relationships with consumers,” he continued.
“The challenge remains on how these technologies can make a real impact for consumers, and for insurers who need to keep pace with a rapidly-changing world.”
The threat of cyber incidents is ranked as the number one concern for UK businesses this year, according to a survey of risk experts by Allianz.
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