Timeline: Insurtech’s five-year investment roller-coaster
A relatively new industry, insurtech has now been disrupting the insurance market for the best part of a decade.
Cutting edge technology, brand new innovative solutions and mobile access for all means customers now expect faster, cheaper and more tailored services than ever before. As a result, startups have mushroomed, unicorns have emerged aplenty and IPOs are making investors and shareholders very happy.
Market growth escalated at a healthy rate until a significant dip occured in 2019. But this simply had a ballooning effect, with business boucing back stronger than ever.
A good year for offerings and IPOs, 2015 saw 2,965.1 offerings and 15 IPOs. As businesses usually go public to raise capital in hopes of expanding, it’s a sign that markets are looking to grow.
Offering sizes dropped considerably, but a rise in IPOs show considerable investment potential and interest in more companies exploring expansion opportunities. The size of offering coupled with a rise in IPO suggests greater growth from smaller companies and more startups.
Another good year, 2017 almost reaching the dizzying heights of 2015 in terms of offering sizes. Once again, the Insurtech market ratches up its expansion plans as 18 IPOs are floated on the global stock exchange.
The beginning of a downward 24-month period shows a marked reduction in offering size. A fall in IPO can be a combination of aversions to red tape and its associated costs, selling out, liquidity and administrative costs, efficient private markets, and a market rebalance following the success of the previous year.
By the end of December, it had been disastrous for insurtech – with numbers down by 50% on the previous year – and down by two thirds on 2015.
The year of COVID-19 and digital transformation saw the biggest changes yet in terms of insurtech offerings and IPOs. Twenty IPOs were issued and floated on the stock market and offerings hit their highest rate for the decade – a third bigger than in the next biggest year - 2015.