Insurance Technology

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