Venture capital and insurtech investment
Partnerships between Silicon Valley investors and the insurance sector have become common as venture funds look for industries ripe for digital change. Insurtech start-ups attract capital with promises of better customer experience, faster claims and data-driven underwriting.
Investment typically targets distribution platforms, claims automation, embedded insurance and analytics tools sold to incumbent carriers. Some funds are linked to large technology companies, which can bring data and engineering expertise as well as money.
For established insurers and reinsurers, these investments are both competition and opportunity. Many partner with or invest in start-ups to access new technology without building everything in-house.