Private investors favored more established insurance technology companies based in Singapore and India over startups during the first half of 2023, according to an S&P Global Market Intelligence analysis.
Insurance exchange operator Bolttech Digital Brokerage Singapore Pte. Ltd. received the largest investment in the period via a $196.0 million fundraising round. In India, Policybazaar Insurance Brokers Pvt. Ltd. completed a $79.3 million round and online insurance distributor Girnar Insurance Brokers Pvt. Ltd. completed a $76.1 million round.
Bolttech was launched in early 2020, Policybazaar was founded in 2008 and Girnar was incorporated in 2016.
"There's definitely a move to more mature and established insurtechs and away from the early stage experiments," George Kesselman, president of InsurTech Asia Association, said in an interview.
Indonesia's Qoala, which operates a digital insurance marketplace, also completed a $72.5 million fundraising round in the first half of the year.
In the full-stack insurtech space, OneDegree Hong Kong Ltd., during the first half, received its second and final tranche of $27 million from a funding round announced in August 2021. In total, OneDegree received $55 million from the two tranches.
Singapore was host to the most insurtech fundraising in Asia during the first half as companies based there raised $214.9 million. The city-state also saw the highest number of deals with six. India came second with $160.4 million from five capital raises.
After previously hitting valuation heights, investors are now focusing on sustainability, which has led to a downturn in speculative investment capital, Gallagher Re said in a recent report. Insurtechs that focus on clear commercial outcomes are gaining more traction than those trying to offer their technology as a product, the report added.
Insurtech startups are saying that investors are now taking a "wait and see approach," Kesselman said.
"There's definitely still openness for insurtech but the excitement that was there two to three years ago has come down to be a bit more realistic," Kesselman added.