The insurance market continued to grow in 2020 despite an unfavorable economic environment characterized by the Covid-19 pandemic. According to a current estimate, the total turnover has reached all global Neoinsurance 218 billion euros last year. But what is her blanket? How much more can they nibble on market share from traditional insurers?
Has sales doubled in four years?
At first glance, one might think that insurance companies have a limited pool of customers. In fact, these digital insurance policies seem to be primarily concerned with a Young adult audience very much with their smartphones. However, this niche could be enough to establish itself permanently in the insurance sector, as Stanislas Di Vittorio, co-founder of Assurland, reminded us Capital ::
“These players are not targeting the entire French market. They are aimed at young workers from higher socio-professional categories. [Mais] They represent a sufficient niche to secure a place in the competitive landscape. “
It is currently hard to imagine that these 21st century insurance policies will replace historical actors established across the population. However, after some study, their place might still matter.
For example, the analyst firm Juniper Research predicts that current insurance revenues will double from 218 billion euros by 2025 to around 466 billion euros. This would be almost a tenth of what the insurance market weighs in the world today (it is estimated to be the case) 5 hundred billion dollars).
Insurance companies don’t fight on equal terms
However, not all insurance companies would have to develop in the same proportion in all markets. Health, for example, currently makes little contribution to neoinsurance. However, this segment could grow particularly in the United States, a country in dire need of private health insurance. In Europe, and particularly in France, where this sector is more regulated, digital health insurance may be less promising. Even if our three-colored nugget, Alan, has just exceeded 100,000 policyholders.
However, the geography of Insurance 2.0 remains inconsistent. According to Juniper Research, it is mostly the United States that would take action at least half of the estimated sales surplus up to 2025 before Western Europe (a quarter) and China (around 20%).
Where is this market in the world, in Europe and in France?
To get an overview of the current market situation on a global level, one can rely on the annual report of Willis Towers Watson, which is authoritative on this topic. According to his findings, 377 fundraising campaigns were completed by insurtech in 2020, a total of $ 7.11 billion. This is higher than 2019 in terms of the number of transactions and the value of the sums: 314 increases totaling $ 6.35 billion i.e. H. an increase of 12% in twelve months.
For the time being, however, this growth is very concentrated across the Atlantic (hence the forecasts by Juniper Research): 181 of the 377 global insurance companies are in fact American. But Europe still seems to be at the forefront in this new market. France and the United Kingdom are among the countries where most of the neo insurance companies are based.
They rose on the old continent 600 million euros last year. A decrease of 25% from 2019 (800 million euros), but with an increasing number of transactions, according to Astorya.VC and everyone, let’s remember: in the heart of an economic crisis.
In France, the lifting was noticed in 2020
In the heart of Europe, our French insurance companies are also doing well. A total of around twenty donation campaigns in 2020 with a few gondola heads: Alan, mentioned above, and Luko, special, 100 million euros have been invested in. But also: + Simple, Tinubu, Square or even Descartes Underwritting, a Parisian startup with high potential and already a partner of NASA.
Overall, the number of hexagonal increases roughly corresponds to that of 2019, but is already showing good momentum this year, with two new rounds of the table being completed Leocare and Lovys, two assuretech positioned on home insurance.
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