InsurTech startups wane, but funds still pour into maturing market

Whether insurers can successfully mine InsurTech treasures and forge them into something useful will depend on how well organized they are in formulating and executing a comprehensive strategy to develop and integrate new technologies across their organization. (Photo: Shutterstock)

While the InsurTech gold rush mentality that marked the first half of this decade may have passed, startup financing remains quite robust, although the focus has begun shifting to more mature players.

The number of fintech startups launched across the financial services industry peaked in 2014 at just above 700 after a rapid ascent over the prior six years. Since then, there has been a steep decline, hitting its nadir in 2017, when fewer than 100 startups made their debut, according to an analysis by the Deloitte Center for Financial Services, based on Venture Scanner data.