Global investment in the insurance technology industry surged in 2017, with Europe emerging as a new InsurTech hub outside the US, according to Accenture research.

The number of InsurTech deals increased 39 per cent globally last year, with the total value of deals up 32 per cent, to $2.3 billion.

While North America still leads in terms of both the total value and number of deals - accounting for $1.24 billion, or 46 per cent of deals last year - the number of deals there grew only 6 per cent in 2017. In Europe, the number of deals increased 118 per cent, accounting for one-third of all InsurTech business globally, and the total value of deals there jumped 385 per cent to $679 million.

The Asia-Pacific region also saw a significant increase in funding, with a 169 per cent rise in deal values, to $358 million, with the number of deals rising 27 per cent.

Despite the uncertainty around Brexit, the UK is emerging as Europe’s InsurTech capital, with 41 of deals in 2017, representing total growth of 117 per cent over the last two years. Deal values vastly increased in 2017, with $364 million invested in UK-based InsurTech firms, up from $19 million the year before.

“The InsurTech industry’s rapid growth reflects investors’ response to consumer appetite for change in an industry sitting on trapped value,” commented Roy Jubraj, Accenture's UK and Ireland insurance strategy and innovation lead.

“At the same time, however, insurers must recognize that InsurTech investments alone can’t deliver the levels of change and innovation the industry requires or that its customers expect.”

The report also revealed that traditional insurers are quickly getting behind emerging technology companies, as the percentage of traditional insurers’ participating in venture capital investments is up 63 per cent over the last five years.

Accenture analysed InsurTech investment data from global venture-finance data and analytics firm CB Insights, including financing activity from venture-capital and private-equity firms, corporations and corporate venture-capital divisions, hedge funds, accelerators, and government-backed funds.

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