Many startup sectors came out of 2021’s hype with a massive hangover in the form of valuations that they simply couldn’t justify as the market dipped and dived. Insurtech startups had it the worst, though, as investors started questioning the viability of the entire category.
A recent report on the sector by Dealroom, Mundi Ventures, MAPFRE, NN Group and Generali refers to this disillusionment as “the death of Insurtech 1.0.”
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That demise started in 2022, when “a broad market downturn, coupled with clear specific challenges of notable insurtech[s] to reach profitability,” contributed to creating a newly challenging environment for insurtech funding, the report said.
But money is like water where venture capital is concerned. Despite all the bad news, capital is still trickling into some pockets of insurtechs that are considered different enough from the first wave of companies.
This morning, let’s dig into what’s happening with global insurtech startups and see if we can spot a little light in this murky bog that many insurtech companies are lost in.