Key findings

The report identified the three emerging technologies that are fueling investor and buyer interest:

Telematics: Data gathered from connected devices in the home, car or through a smartphone can help insurers create a profile around a consumer's habits. This allows them to tailor insurance policies for every individual. One example of this is how life insurers are using wearable technology to monitor an insured's health and physical activity. As a result, an insurer can lower the premium of an insured who exercises and/or maintains a healthy lifestyle. Hampleton notes, however, that insurers' biggest strategic priority regarding telematics is in smartphone usage-based insurance (UBI) space.
Drones: Drones are helping insurers gather claims information in ways that were not possible before, such as assessing wildfire destruction or evaluating roof damage on a compromised structure. Drones are also providing a complete picture of a situation faster than ever, especially after weather events or a natural disaster.
Mobile-first platforms: Mobile-first disruptors are changing how consumers interact with the insurance industry and are becoming rising stars in the insurance industry. Root Insurance, a mobile insurer, uses smartphone technology and data to evaluate a driver's behavior to set auto insurance rates — and in August 2019, the business was valued at $3.65 billion. Lemonade, a mobile-first service for renters and homeowners insurance, raised a funding round of $300 million earlier this year

The future of InsurTech M&A

While M&A activity remains stable in the InsurTech space, Hampleton expects the market will pick up speed as more startups mature and become more viable investment targets for insurers and solutions providers.

Special Reports /

InsurTechs achieved a record-breaking $3B in investments in first-half 2019

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