After a record Q1'16 for insurance tech deal activity, Q2'16 saw deals drop 41%.

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Deal activity in the insurance tech space fell in Q2’16 after a record quarter for deal pace in Q1’16, according to CB Insights data.

More specifically, Q2’16 saw deals drop 41% from Q1’16′s high, while funding levels also fell 69% on a quarterly basis.

In total, funding to insurance tech startups topped $1B in the first half of 2016. The deal volume of 80+ deals in the first two quarters combined puts the year on pace to top 2015′s total by over 42%.

Report: Understanding the Insurance Tech Landscape
This free report prepared for LendIt 2017 covers startup formation and VC interest, insurance startups and investment trends, and how incumbents are responding to disruption.



Nearly half of all deals at seed-stage in first half of 2016

47% of insurance tech deal activity took place at the seed/angel stage in H1’16, Series A deals, which included rounds to Insurance Zebra, Shift Technology, Embroker, and League among others, took 15% of all deals in the six-month period, while mid-stage deals (Series B-C) made up a combined 16% of deals.

Interestingly, 9% of deals in the first half of 2016 went to corporate minority rounds including Allianz’s investment in product insurance startup Simplesurance and Intact Financial’s investment in per-mile insurance provider Metromile.


US continues to dominate insurance tech deal activity

63% of deal activity to the insurance tech market went to US-based startups in the first half of 2016. Germany, India and the UK each took 5%+ of deal share over the period, with no other country registering more than 3% of deal share.

Within the US only, New York, and California each saw the same amount of deals in H1’16 and three times more than any other state.



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