InsurTech NY opens applications for accelerator programme
InsurTech NY, the largest insurtech community in North America, has announced today it will be accepting applications for its growth-stage InsurTech accelerator programme. According to the company, applications will be open from today (7 July) until 2 August through InsurTech NY’s website.
What is InsurTech NY’s accelerator programme?
"The InsurTech NY programme is built for the moment in time when startups are transitioning from surviving mode to thriving mode", said David Gritz, Managing Director of InsurTech NY. "InsurTechs from our past cohort have gone on to raise over $100 million in follow-on funding and find fruitful partnerships with our carrier and broker partners. This cohort will have the same opportunity."
Designed specifically for growth-stage companies, the programme provides support to insurtechs in areas such as market traction, recruiting talent, and raising funds. It will also provide startups with access to insurance carriers and brokers looking to work with them. InsurTech NY says that the participating corporations will be looking to collaborate with startups on insurance capacity, reinsurance treaties, and software pilots, and that “cohort members will have the opportunity to meet rockstar InsurTech founders who have taken their companies public or sold their companies”.
Steve Bernardez, Partner at Avanta Ventures, the venture capital arm of CSAA Insurance Group, and a participating member of the programme, said: “The InsurTech NY accelerator provides a unique formula for matchmaking that supports carrier core initiatives and removes the bloat of typical time-consuming accelerator programmes.
"We look forward to the opportunity to work with InsurTech NY to spot our next unicorn investments and partnership opportunities for CSAA Insurance Group, he added.
The programme will feature more than 20 carriers, brokers, and their affiliated venture arms including Avanta Ventures, CNO Financial, Gallagher, Greenlight Re, Lockton, Nationwide, and Transverse. The 2021 cohort will run as a hybrid model, partially virtual and partially in-person over a six-week period. It will close with a demo day to more than 30 dedicated InsurTech investors.
CB Insights: US Insurtechs Are Competing In A Global Market
In the first half of the year, insurtech companies around the world have raised US$7.4bn, nearly doubling their funding in Q2. According to Digital Insurance, insurtechs have raised US$4.8bn in Q2—an 89% increase in funding from Q1. But US firms are no longer the sole beneficiaries.
What Are the Stats?
Out of the 15 Q2 mega-rounds—those that top US$100mn—only eight included American firms. Pretty good, you might say. That’s over half! But US companies only made up 38% of the deals, which marks a 10% drop from Q1 and a 12% drop from 2020. Technically, therefore, US insurtechs are less influential than they’ve been in the past. But who says this is a bad development?
Despite my American citizenship, I’d argue that a more globally diverse insurance market is only for the best. Many of the world’s citizens who could most benefit from improved insurance services live outside of the States—and deserve local, tech-savvy services.
Why Does This Matter?
You’re always going to see the typical insurtech contenders from Western countries. For instance:
- German-based wefox: US$650mn Series C
- UK-based Bought By Many: US$350mn Series D
- US-based Collective Health: US$280mn Series F
But it’s critical that we address risk across the world. American insurtechs might be some of the most technologically skilled firms in the industry, but it’s not their first goal to address floods in Southeast Asia, crop destruction in China, and COVID complications in South Africa. That’s why we should celebrate that the recent Q2 round included insurtechs from 35 different countries.
According to CB Insights’ Q2 2021 Quarterly InsurTech Briefing, this was the first time that they’d observed insurtech activity in Botswana, Mali, Romania, Saudi Arabia, and Turkey. And ‘from a product, service, distribution, and underlying risk perspective, we—as a society and as an industry—are moving at an unprecedented speed’, says Dr. Andrew Johnston, Global Head of Willis Re InsurTech.
Just ask CB Insights. InsurTech value propositions have resonated with the world.