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InsurTechs Continue to Attract Record Funding and Gain Traction Across the Insurance Value Chain

Jun 29, 2021

InsurTechs Continue to Attract Record Funding and Gain Traction Across the Insurance Value Chain

InsurTech, Market Update 0 Comments

Dear Clients and Friends,

Marlin & Associates (M&A) is pleased to share our latest market update on the Insurance Technology (InsurTech) sector. You can read our latest report on m&a values and trends in InsurTech HERE. 

As we noted in our last update, the Covid pandemic accelerated adoption of digital technologies across the board but has really provided strong tailwinds in the insurance industry. InsurTechs offering solutions that complement existing players are particularly seeing faster adoption compared to solutions that aim to completely disrupt the status quo. InsurTechs that help improve the underwriting and claims process as well as customer experiences, are getting the most traction.

As you will see from the attached REPORT, InsurTech capital raising continued at a record pace with 1Q’2021 setting a new high with companies raising ~$2.6bn across 146 deals – an increase of 180% from 1Q’2020 and ~22% increase from 4Q’2020. Increasingly, we are starting to witness convergence between non-insurance and insurance players. Some notable examples include Walmart launching insurance brokerage services and Ford teaming with Metromile to offer UBI insurance options. Similarly, many insurance companies are venturing outside of traditional insurance with several recent examples of investments in WealthTech, Payments or Energy efficiency solutions. We’re also excited about increasing use of automation and AI / ML solutions across the insurance value chain.

Marlin & Associates is one of the most active investment banking and strategic advisory firms, providing trusted counsel to middle-market companies worldwide that offer enterprise and vertical application software, services, data and analytics including firms across FinTech ecosystem (InsurTech, BankTech, Payments, WealthTech, LegalTech, GRC Capital Markets), Digital Tech, Business Intelligence, and Market Intelligence. Over the course of 19+ years we have advised more than 200 companies in 27 countries.

On June 9th, 2021, Marlin & Associates agreed to combine with the technology investment banking group of D.A. Davidson to form the 5th largest middle-market investment bank in the United States. We expect the transaction to close in Q3, following regulatory approvals. D.A. Davidson is a fast-growing, full-service financial services company with 1,400 employees and 99 offices in 28 states, providing wealth management, investment banking, and equity & fixed income capital market services – including the full range of M&A advisory for clients worldwide looking to buy, sell, or raise capital.

Our latest report in M&A Values and trends in InsurTech is HERE.

Please feel free to reach out to me (aagarwal@marlinllc.com) with any questions or to discuss this in further detail. We are keen to hear from you and happy to share what we are witnessing in the markets and how that could relate to your company. We would also like to invite you to register for D.A. Davidson’s 20th Annual Software and Internet Conference which will take place virtually in September 2021. Please reach out to me if you’re interested in registering for this conference.

Kind regards,

Anup

Anup Agarwal

Anup Agarwal

Anup Agarwal is a Senior Managing Director at Marlin & Associates, where he is primarily responsible for transaction origination and execution in sectors such as business intelligence, data analytics, enterprise software, and technology-enabled services. Anup has more than 18 years of investment banking experience advising middle market companies both in the US and in international markets.

Anup has advised both public and growth-oriented private companies on a number of strategic and financial transactions, including buy-side and sell-side M&A, private capital raising, IPOs, leveraged buyouts, divestitures and recapitalizations.

Before joining Marlin, Anup worked at a middle market investment banking firm and completed transactions both in technology and healthcare sectors. Previously, Anup worked in Lehman Brothers’ investment banking division where he evaluated and executed numerous M&A advisory and capital raising assignments for private equity and corporate clients. Anup also worked at Bear Stearns in New York in their investment banking division, as well as with the IL&FS Group in India. Early in his career, he was a critical member of a team responsible for building a new technology driven financial services venture.

Anup received MS in Economics and BS in Engineering from BITS, Pilani, India and his MBA from the Darden School of Business at University of Virginia, where he was a Tayloe Murphy Scholar. Anup is a registered securities principal and holds series 7, 63, and 79 licenses.

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