PriyaPatel
TLDR:
Key Points:
- Southeast Asia’s insurtech sector saw a significant rise in deal value in 2023, reaching $2.35b from 27 deals.
- The majority of the sector’s deal value was driven by Singlife’s merger with Aviva Singapore, valued at over $2b.
In 2023, despite ongoing macroeconomic and geopolitical uncertainties, Southeast Asia’s insurance technology (insurtech) sector experienced a notable increase in deal value, reaching $2.35b from 27 deals. This marked a significant rise from $538m from 39 deals in 2022 and approached the 2020 high of $2.36b from 32 deals. The majority of the sector’s 2020 deal value was primarily driven by Singlife’s merger with Aviva Singapore, valued at over $2b.
According to a report by EY and Singlife, investors in the insurtech sector are becoming more selective, focusing on profitable companies with innovative technologies or strong regional presence. Notable deals such as Sumitomo Life’s acquisition of Singlife and Bolttech’s Series B round highlight this trend. Singapore continued to dominate InsurTech funding and deal count, accounting for 85% of the deal value, while Indonesia, Thailand, and Malaysia are also attracting investment due to favorable demographics and market developments.
Rahul Vardhan, Partner at Ernst & Young Solutions LLP, pointed out that future fundraising in the sector will likely focus on category leaders with a track record of sustainable growth and regional presence. The report also observed a rise in exit strategies, including IPOs, along with strategic partnerships and investments by tech unicorns and traditional financial providers to enhance InsurTech offerings.
In conclusion, the insurtech sector in Southeast Asia is experiencing significant growth and investment, driven by key mergers and acquisitions, strategic partnerships, and a focus on innovative technologies. The region’s underpenetrated insurance market provides opportunities for category leaders with strong regional presence to scale and expand across multiple jurisdictions.
