
As insurtech investment dips, companies get boost by teaming with traditional insurers
Insurance technology startups (insurtechs) have been disrupting the insurance industry for several years, offering customers on-demand products and streamlined services driven by technological advancements. The traditional insurance industry provided the perfect landscape for insurtech disruption as the industry generally lags the pace of digital transformation adopted by other industries. Now, in 2022, insurtechs are seeing sharp declines in their stock values and struggling to maintain a competitive advantage in the market.
With inflation, higher interest rates and the potential for a recession, venture capitalists are being more conservative with growth stocks and investments. While insurtechs may see some growth this year, investment deals and funding for such companies have slowed to less than half of what they were in 2021.
