According to the Insurtech Investment Index 2021, investments in startups by insurance companies and intermediaries are increasing, with almost €10 million compared to the €5.1 million spent in 2020 and a growth of 8%. In Italy, the transformation of the insurance sector is certainly underway: it is estimated that by 2030 the value of total premiums will reach $10 trillion worldwide and that 80% of policies will be conveyed through digital platforms.
The index, conceived and drawn up by IIA (Italian Insurtech Association) and by the Fintech & Insurtech Observatory of the Politecnico di Milano, estimates the maturity of the insurtech sector in Italy and is useful to understand its trend within the country, by comparing Italian dynamics with international ones.
The index takes into consideration three factors:
- Capital investments in Insurtech startups and innovative SMEs in the insurance sector
- Investments in internal innovation in the digital development of companies, professional intermediaries, and suppliers of the insurance industry
- Investments to improve collaboration among players of the supply chain
The index is expressed in thirtieths.
Italy's score of 18/30 in 2020 has increased to 20/30 in 2021, a good but not yet sufficient result. Despite the increase in investments, there has been a decrease in in-house projects (-16 pp) and partnerships (-22 pp). Only 47% of insurance companies have launched projects developed internally, compared to 63% in 2020; external partnerships have fallen from 75% in 2020 to 53% in 2021.
In 2021, there were 14 deals with a value of €9.7 million for an average invested capital of around €0.7 million. 86% of these investments are directed towards startups based in Italy, 7% for startups based in Europe and 7% for worldwide startups.