Long seen as ripe for innovation, the insurance industry attracted significant attention from venture capital investors over the last few years. A renewed focus on capital efficiency and profitability is now bringing a new lease on life to the insurance technology landscape after a turbulent couple of years. Exciting times are ahead.
Executive Summary
Matthew Jones leads venture investing at Transverse Ventures, an insurance-focused investment fund backed by a range of industry participants. Jones previously contributed to this publication during his time at Anthemis and returns to Carrier Management in this refreshed regular series.Here, he picks up where he left off examining what's happened with VC funding of insurance startups since his last article in 2022.
What Doesn’t Kill You Makes You Stronger
From new distribution models to new approaches to underwriting, the insurance industry saw an influx of startup activity between 2019 and 2022, fueled by an unprecedented surge in venture capital. This boom in venture funding, a surge that saw nearly $30 billion pouring into the space, was partly driven by the belief that insurance could be disrupted in a similar fashion to traditional fintech. Well-capitalized startups were meant to usher in a new era of insurance—revolution rather than evolution.
