Interview Preparation

If only If you tracked down the US insurance tech companies that went public recently, you might think that insurtech is in its bust era.

Fortunately, that is not true.

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We saw earlier this week how falling valuations of public insurtech companies have coincided with a decline in VC interest in the category.

Consequently, the funding climate for late-stage startups in the sector has been difficult, but there is a lot of optimism around the new generation of startups.

However, it is worth noting that the US is very distorting data in the global insurtech market. Of the $2.4 billion invested in insurtech startups around the world, half, or $1.2 billion, went to US companies, for Dealroom data. The regional results, therefore, deserve more of our attention.

So this morning, we’re looking at how insurtech has fared in the EU. We will also check the performance of several European insurtech companies, based on data collected by Stanislas Lot, an investor at daphni. Work!

Where is Europe?

The US insurtech market is the world’s largest for venture investing, which is not surprising as it is the world’s largest venture market. Still, Europe doesn’t stack up too badly, ranking third, following a group of countries grouped as “Rest of Asia,” according to Dealroom.

So far in 2023, insurtech startups in Europe have raised $341 million, down 33% from the previous year. That decline is actually steeper than what we’ve seen around the world (a 23% drop), in the United States (22% less), and Southeast Asia (a 5% drop). Notably, only the “Rest of Asia” group experienced any growth (58%).