Deal activity in the insurance tech space hit its highest annual total in 2016, according to CB Insights data.
In total, deals to insurance tech startups rose 42% on a year-over-year basis in 2016 to hit 173. Total funding to insurance startups in 2016 hit $1.69B, the second consecutive year investment dollars to the space topped $1B. Overall dollars to the space fell 37% YoY between 2015 and 2016, as two separate deals to online HR software firm Zenefits and Chinese online insurer Zhong An Insurance accounted for $1.43B in total funding.
Early days
Of note, two of every three insurance tech deals in 2016 took place at the early-stage (Seed/Series A). On a year-over-year basis, early-stage insurance tech funding rose 56% to hit $508M in 2016. Early-stage insurance tech deals topped 100 in 2016 and rose 47% YoY. Startups that raised seed or Series A funding in 2016 included Hippo Analytics, CoverWallet, Embroker, Ladder Life, Cape Analytics, Root Insurance, Shift Technology, League, and Estify among others.
Where deals went
Geographically, 59% of insurance tech deals in 2016 went to US-headquartered startups. Germany, the UK, and China all saw 5%+ of insurance tech deals over the twelve-month period.
Deal activity to insurance startups in 2016 was spread among a diverse set of countries from Switzerland to India to Australia, and the United Arab Emirates.
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