Is optimistic investors about embedded insurtech justified? • businesskinda.com

Enclosed insurance — selling coverage at the same time as another product or service – is increasing. According to data platform Dealroomit accounts for a growing share of all policies sold, and startups in this space have raised nearly $800 million in 2021 alone.

After recently surveying investors about all things insurtech, we were curious to see if the market remained as optimistic about embedded insurance as it was last year – and if it was justified.

“Personally, I remain optimistic about embedded insurance,” general partner of Brewer Lane Ventures Martha Notaras told businesskinda.com. “Many insurance purchases are difficult, so it makes sense to factor insurance into another transaction.”

While we saw clear value in being able to bundle insurance with another purchase, Notaras and other investors we spoke to also had concerns.

“We believe in the concept of embedded insurance, but a more measured approach would suit investors well when analyzing these companies,” partner of Distributed Ventures Adam Blumencranz said.