Investment in healthcare insurtech is dominating the market landscape as new technology gains momentum and consumer demand for a healthier lifestyle fuels appetite for sharing data.

Insurtech investment hit £4.8bn in 2019, rising 58% from 2017-2018 according to figures from NTT DATA, which reveal the dominant position of health insurtech startups, attracting 29% of total funds invested in 2019.

NTT's Insurtech Global Outlook suggests that a consumer desire to live a healthier lifestyle for a better quality of life is generating a boom in innovation and investment in insurtech – from health to auto insurance. Big tech companies are helping to drive this change, pushing forward the advances in wearable technology, digestibles, smart devices and data collection to help track and monitor lifestyle choices.

Alphabet (including CapitalG and GV) is a big player in this ecosystem, as is Fitbit (wearables), Calico (longevity and well-being research) and Verily (life-science research). In addition, in the last year, 70 per cent of the investment in startups of this ecosystem (a total of 69 companies) was concentrated by four companies: Bright Health, Clover, Water Drop and Singlife.

Commenting on the findings, NTT DATA's head of insurance, Kim Gray said: “Thanks to a focus on healthy living and wearable devices, health companies and insurers are also impacted by this change in the increased adoption of healthy lifestyle habits. As our lifestyles change, the demands placed on health insurance are shifting. Insurance companies are starting to reward users with discounts on premiums to those who show they take care of their health. Industry players may want to watch the major Asian startups Waterdrop and Singlife, who are betting hard on continued disruption with their experiential approach to health insurance, offering a digital experience powered by smart technologies.”

A greater focus on health amid COVID-19 will do nothing to hurt this trajectory.


Image courtesy of Fitbit

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