After eight years of boomtime, temporary blip or not, it is believed that such corrections are not just flukes.
CB Insights research found that $2.7Bn were invested in InsurTech startups last year. We sincerely hope that such funding into tech startups will continue, particularly if these young businesses clearly demonstrate the economic value they deliver to the insurance industry.
There is an entire generation of founders (and funders) who have only experienced one kind of market –the boomtime market of the last eight years. They have never experienced a downturn, and many believe that this is just a temporary blip. Some even believe that the venture capitalists who are blogging and tweeting about the market downturn are doing so in a deliberate attempt to drive valuations down (disregarding, of course, the impact that lower prices will have on that VC’s existing portfolio). We have been working aggressively to help coach our founders on the realities (and consequences) of market cycles.