Priya PatelTLDR: Insurtech has remained steady while other fintech segments suffered declines in funding and market performance in 2023, according to a Forbes article. The payments segment experienced a 39% drop in funding, while wealthtech and capital markets tech saw declines of 75% and 50%, respectively. Insurtech, on the other hand, maintained steady funding and saw the highest number of deals among fintech segments. The article suggests that insurtech’s stability may be due to its focus on business-to-business operations, rather than consumer-facing models, which can be challenging to scale. Non-consumer insurtech companies that address more complex areas of the insurance value chain continue to gain traction and attract investor attention.
Key Points:
- Insurtech remained steady in 2023 while other fintech segments experienced declines in funding and market performance.
- The payments segment saw a 39% drop in funding, while wealthtech and capital markets tech experienced declines of 75% and 50%, respectively.
- Insurtech consistently maintained funding levels around or above $1 billion since 2019 and saw the highest number of deals among fintech segments.
- Insurtech’s stability may be attributed to a focus on business-to-business operations, which can be less challenging to scale compared to consumer-facing models.
- Companies addressing complex areas of the insurance value chain and serving businesses continue to attract investor attention.
- In 2024, investor interest is likely to center around insurtech companies that help insurers improve core functions and leverage generative AI.
- Data and analytics companies offering AI solutions are expected to see increased investor interest due to recent advancements in the field.
- Investor interest is also expected in insurtech companies addressing cyber risk and serving customers outside the insurance industry.
