Investors flocked to back European InsurTech companies in 2023, with a total of 331 individual backers supporting the sector.
According to research from InsurTech Analyst, there was an influx of capital injections across the space, with techstars proving to be the investment firm which produced the most deals (5) in the space on the continent.
techstars’ investment portfolio encompassed Sprout.ai, an advanced claims automation engine tailored for the insurance sector, and Fluffy, a provider of pet insurance offering incentives to conscientious pet owners.
However, despite this success, a lack of automated technologies actually meant that the sector declined in the number of deals and overall investment throughout the year.
Benjamin Deplus, Principal in the Venture Team at Breega, one of the fastest growing VC companies in Europe, gave his view on the decline and explained why there is cause for optimism. He said, “In 2023, the InsurTech sector matured significantly. Numerous companies within the industry secured substantial funding to support their growth initiatives at cost. However, despite the influx of financial support, there was a decline in both the number of deals and overall investment due to challenges stemming from inadequately automated technologies.
A BCG report also gave their view on this decline in deals, putting it down to certain segments of the insurance industry, such as personal property and casualty (P&C) and health insurance, reaching a phase of relative maturity.
Despite the negatives, the UK emerged as a clear frontrunner in the realm. The nation bagged an impressive 46 deals throughout the calendar year. This accounted for a staggering 37% share of the overall total from across the continent.
At the zenith of this were six of Europe’s top ten deals, which all went the way of the UK, and was headlined by a monstrous $129m deal secured by London-based software specialists Quantexa. The firm raised the funds in their latest Series E funding round, led by GIC.
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