December 6, 2018

Insurtech M&A in the US will expand in 2019

Maturing start-ups will be targeted for acquisition by more established market players.

In 2018, insurtech has transitioned in the US from the novelty fringes of the insurance industry to take centre stage – that is, insurtech has come to be seen as a broad range of potential insurance businesses and products, technologies, and business methods and approaches that will come to revolutionize almost every aspect of insurance in the future. Established insurance players, from insurance companies to agencies and brokers, see insurtech as a crucial piece of planning their near-term and future growth and strategy.

At the same time, out of the numerous insurtech businesses that have been launched over the past three to five years, there are many which have not only survived but which have established a solid foundation, albeit while continuing to undergo rapid transformation of their ideas and businesses. In 2019, such more “mature” insurtech businesses will be targets for acquisitions by insurance companies as well as larger, established insurance agencies and brokers that wish to make the strategic acquisitions to bring in the insurtech businesses into their organizations. As a result, we expect to see a significant growth in insurtech M&A in the US in 2019. The size of each deal will be small but there should be a significant ramping up in the number of such deals.

You can read the rest of our insurance predictions here.