Lloyds’s Lab insurtech cohort both continuing and actively focusing on pandemic solutions is undoubtedly a positive for the insurance industry. Lloyds Lab is one of the most prestigious incubators for insurance start-ups in the insurance sector, and is essential in an environment where start-up and deals are significantly down so far in 2020 – with the total value of global insurtech deals having fallen by 80%. Start-ups could be essential in providing the innovation to help recovery, says GlobalData, a leading data and analytics company.

Ben Carey-Evans, Insurance Analyst at GlobalData, comments: “The dramatic fall of global insurtech deals in 2020 is a shock after it grew by over 100% in both 2019 and 2018. The 2020 figure is just up to July, so the scale of decline will be reduced by the end of the year, however, GlobalData still expects 2020 to show a substantial reduction on 2019.”

Lloyds said the final ten companies were selected from 140 applicants, which highlights that new ideas and innovation is still present in the insurance market, despite trying conditions.

Carey-Evans added: “All ten start-ups are looking to offer digital solutions and data analytics, as opposed to being consumer facing. While insurers may not be looking to invest large sums at present due to pressure on profitability, successful insurtechs like these could help increase process efficiency and gain better insights from the wealth of customer data they hold.

“Insurtechs merging with incumbents, as opposed to challenging them, is a long-running theme in insurance, and it seems this is set to continue. Start-ups would struggle immensely to underwrite premiums, especially in the current climate, but their digital and analytics expertise could be priceless to larger companies.”

If you would like to know more, please email your questions to Rebecca Panks, PR Executive at GlobalData (pr@globaldata.com)