Insurtech start-ups deals reached $2.6bn (£2.3bn) in 2018, with a highest ever volume of 204 deals, research found.
The figures from Hampleton Partners, show the transaction value for 2018 so far is already close to the 2015 peak of $2.7bn, which had 124 deals.
In 2017, there were 202 insurtech deals worth $2.2bn, and 2016 saw 174 deals for a value of $1.7bn.
Miro Parizek, founder of Hampleton Partners said: “There’s an army of insurtech startups which are challenging legacy players. The market has adopted a survival of the fittest environment.
“Since organic growth and investing in R&D is a long-term game, M&A has been the natural solution to the incumbents’ problem of accelerating technological transformation and evolving their traditional business models for the 21st century.
“Next-generation insurance is having to evolve quickly with new business models and a greater focus on technology innovation.
“Insurtechs have become a natural threat to incumbents, but also potential valuable partners in this changing landscape. It’s a sector that’s growing rapidly and stands to capture a meaningful share of the value pools within a few years. How quickly incumbents adapt to these inexorable market changes will determine the size of their share in the next generation of the insurance industry.”
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