Opportunities for insurers in a rapidly shifting insurtech market

For nearly a decade, insurtechs have experienced rapid growth and skyrocketing valuations. But in 2022, investors’ optimism has been tempered by compounding pressure from inflation,1 rising interest rates, and geopolitical and macroeconomic uncertainty. Investors are increasingly looking for a sustainable business model advantage—a far cry from the “growth at all costs” focus in recent years. As a result, major publicly listed insurtechs have seen their valuations plummet compared with their all-time highs. The exhibit shows the compression of valuation for ten publicly traded insurtechs that had previously enjoyed some of the largest funding rounds of the industry. This cooling has sent shock waves through the insurtech community and reminded players to balance their hunger for growth with scalable business performance.