Global funding for the insurance technology sector posted a modest recovery in the second quarter of 2022, but is still down more than half from a year ago, a report from reinsurance company Gallagher Re has shown.
While funding rebounded by about 9 per cent to $2.41 billion from April to June, from $2.2bn in the first quarter, the level of investment in the three-month period ending June 30 was still 50.2 per cent below the $4.84bn the sector recorded in the second quarter of 2021, which was its second-best on record, the London-based advisory said in its quarterly update.
A total of $948 million was raised in the second quarter through six mega rounds, including four based in the US, with average deal size rising 18.3 per cent quarterly to about $22.1m, the report said.
The total was about 43 per cent higher than the first quarter's $668m. This was offset by a 7.7 per cent decline in total deals 132 in the second quarter, from 143 in the first three months of the year.
With stock markets on the downside, insurance technology companies are poised to deliver growth and profitability in the long term, and are an “excellent opportunity” for investors to diversify their portfolios, said Andrew Johnston, global head of InsurTech at Gallagher Re.
“A number of [InsurTechs] will undoubtedly change the face of our industry, or parts of it and, in some cases, are already doing so. As markets begin to recover, those InsurTechs should rise to the surface with the utmost buoyancy.”
The demand for InsurTech solutions is rising as it helps predict consumer demands, increase purchasing quantities, as well as enhance decision-making and insurance planning through the use of machine learning, artificial intelligence and cloud computing, according to Future Market Insights.
The global InsurTech industry is expected to hit $165.4bn by 2032, from about $16.6bn in 2022, at a compound annual growth rate of about 26 per cent, it said.
In 2021, the InsurTech sector recorded $15.8bn raised in funding, a record high, from 564 deals, as more capital flowed into the industry last year than in 2020 and 2019 combined, Gallagher Re said in April.
Total disclosed funding for life and health InsurTech hit $918m in the second quarter of 2022, which is a 12.4 per cent quarterly rise, with deals growing to 40, from 37, during the period, Gallagher Re said. The average deal size was $24.8m for the quarter, with about 58 per cent for companies focused on lead generation or distribution.
Funding in the property and casualty segment was also up, rising about 6 per cent quarterly to $1.49bn, although deals were down 13.2 per cent. The average deal size for the quarter was $20.73m, and the bulk of transactions was between companies focused on distribution and business-to-business operations.
US-based InsurTech companies concluded 60 deals — their highest — in the second quarter, making up 46 per cent of the market.
There was a big increase to the UK's share, which was the only other country to record a double-digit market share of more than 12 per cent.
Gallagher Re said that the InsurTech industry remains a viable investment alternative, especially given shaky economic conditions. Technology's potential to improve insurance services is also an attractive proposition.
Market participants are “nervous about overall global economic growth”, the company said, citing high oil prices, the war in Ukraine and a sharp rise in Covid-19 cases in China.
The recent downgrade of company values could lead to mergers, acquisitions and divestitures that were unlikely six months ago, Mr Johnston said.
“It has caused some InsurTechs to coalesce, and thrown cold water over many other InsurTechs that previously considered themselves special or unique,” he said.
“After value realisation, certain InsurTechs should offload and certain investors — even certain InsurTechs — should acquire. For both sides of the trade, this moment could be seen as an enormous opportunity.”
Tips for used car buyers
- Choose cars with GCC specifications
- Get a service history for cars less than five years old
- Don’t go cheap on the inspection
- Check for oil leaks
- Do a Google search on the standard problems for your car model
- Do your due diligence. Get a transfer of ownership done at an official RTA centre
- Check the vehicle’s condition. You don’t want to buy a car that’s a good deal but ends up costing you Dh10,000 in repairs every month
- Validate warranty and service contracts with the relevant agency and and make sure they are valid when ownership is transferred
- If you are planning to sell the car soon, buy one with a good resale value. The two most popular cars in the UAE are black or white in colour and other colours are harder to sell
Tarek Kabrit, chief executive of Seez, and Imad Hammad, chief executive and co-founder of CarSwitch.com
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
Getting%20there
%3Cp%3EGiven%20its%20remote%20location%2C%20getting%20to%20Borneo%20can%20feel%20daunting%20even%20for%20the%20most%20seasoned%20traveller.%20But%20you%20can%20fly%20directly%20from%20Kuala%20Lumpur%20to%20Sandakan%20and%20Sepilok%20is%20only%20half%20an%20hour%20away%20by%20taxi.%20Sandakan%20has%20plenty%20of%20accommodation%20options%2C%20while%20Sepilok%20has%20a%20few%20nature%20lodges%20close%20to%20the%20main%20attractions.%3C%2Fp%3E%0A
Killing of Qassem Suleimani
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
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Getting there
The flights
Emirates and Etihad fly to Johannesburg or Cape Town daily. Flights cost from about Dh3,325, with a flying time of 8hours and 15 minutes. From there, fly South African Airlines or Air Namibia to Namibia’s Windhoek Hosea Kutako International Airport, for about Dh850. Flying time is 2 hours.
The stay
Wilderness Little Kulala offers stays from £460 (Dh2,135) per person, per night. It is one of seven Wilderness Safari lodges in Namibia; www.wilderness-safaris.com.
Skeleton Coast Safaris’ four-day adventure involves joining a very small group in a private plane, flying to some of the remotest areas in the world, with each night spent at a different camp. It costs from US$8,335.30 (Dh30,611); www.skeletoncoastsafaris.com
Brief scores:
QPR 0
Watford 1
Capoue 45' 1
UAE currency: the story behind the money in your pockets
Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
Torque: 700Nm
Price: From Dh450,000, Autograph model from Dh510,000
Available: Now
UAE currency: the story behind the money in your pockets
Results
Stage 7:
1. Caleb Ewan (AUS) Lotto Soudal - 3:18:29
2. Sam Bennett (IRL) Deceuninck-QuickStep - same time
3. Phil Bauhaus (GER) Bahrain Victorious
4. Michael Morkov (DEN) Deceuninck-QuickStep
5. Cees Bol (NED) Team DSM
General Classification:
1. Tadej Pogacar (SLO) UAE Team Emirates - 24:00:28
2. Adam Yates (GBR) Ineos Grenadiers - 0:00:35
3. Joao Almeida (POR) Deceuninck-QuickStep - 0:01:02
4. Chris Harper (AUS) Jumbo-Visma - 0:01:42
5. Neilson Powless (USA) EF Education-Nippo - 0:01:45
SPECS
%3Cp%3E%3Cstrong%3EEngine%3C%2Fstrong%3E%3A%202-litre%20direct%20injection%20turbo%20%0D%3Cbr%3E%3Cstrong%3ETransmission%3C%2Fstrong%3E%3A%207-speed%20automatic%20%0D%3Cbr%3E%3Cstrong%3EPower%3C%2Fstrong%3E%3A%20261hp%20%0D%3Cbr%3E%3Cstrong%3ETorque%3C%2Fstrong%3E%3A%20400Nm%20%0D%3Cbr%3E%3Cstrong%3EPrice%3C%2Fstrong%3E%3A%20From%20Dh134%2C999%26nbsp%3B%3C%2Fp%3E%0A
The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
Moon Music
Artist: Coldplay
Label: Parlophone/Atlantic
Number of tracks: 10
Rating: 3/5
City's slump
L - Juventus, 2-0
D - C Palace, 2-2
W - N Forest, 3-0
L - Liverpool, 2-0
D - Feyenoord, 3-3
L - Tottenham, 4-0
L - Brighton, 2-1
L - Sporting, 4-1
L - Bournemouth, 2-1
L - Tottenham, 2-1
Tiger%20Stripes%20
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Amanda%20Nell%20Eu%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Zafreen%20Zairizal%2C%20Deena%20Ezral%20and%20Piqa%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204.5%3C%2Fp%3E%0A
Closing the loophole on sugary drinks
As The National reported last year, non-fizzy sugared drinks were not covered when the original tax was introduced in 2017. Sports drinks sold in supermarkets were found to contain, on average, 20 grams of sugar per 500ml bottle.
The non-fizzy drink AriZona Iced Tea contains 65 grams of sugar – about 16 teaspoons – per 680ml can. The average can costs about Dh6, which would rise to Dh9.
Drinks such as Starbucks Bottled Mocha Frappuccino contain 31g of sugar in 270ml, while Nescafe Mocha in a can contains 15.6g of sugar in a 240ml can.
Flavoured water, long-life fruit juice concentrates, pre-packaged sweetened coffee drinks fall under the ‘sweetened drink’ category
Not taxed:
Freshly squeezed fruit juices, ground coffee beans, tea leaves and pre-prepared flavoured milkshakes do not come under the ‘sweetened drink’ band.
