Insurance is largely underfunded and digitally undisrupted in terms of VC investments compared to sectors of similar sizes, such as mobility, health, and food.
Through a market report by Dealroom.co, Insurtech represents a $7 trillion opportunity on a global basis, larger than mobility, yet the latter received over fives times more funding in the years 2022-2023. In particular, life insurance receives a very small share of VC Insurtech investments, ca. 10%. The insurance sector is at the same time booming, in Europe, non-life growing by 19% over 2018-2023, with $400 billion in profit.
On top of that, new P&C risks, such as cybersecurity and climate change-related, have emerged and is still at large underinsured – a gap estimated at €300 billion, presenting further opportunity. As an example, again referring to cybersecurity, 60% of European small-to-medium sized businesses (SMBs) received an attempt of a cyber attack last year, whilst penetration of cyber insurance is still below 20% in the space.
Among others, McKinsey and Company, projects a base case of premium-driven top-line growth and stable development of profits for Europe. According to the same firm, the European Insurtech market has the potential to grow to €200 billion by 2030.