Venture capital investment in insurtech is booming, with companies raising over $14 billion in 2021—a 105% year-over-year increase and more than the previous two years combined, according to PitchBook data.

How are those dollars being allocated? The market map below outlines the global ecosystem for insurtech. You can explore the commercial segment, which includes the fast-growing cyber insurance market, by clicking on the colored tile in the interactive market map.
 
 
To go deeper, read our 2021 Annual Insurtech Report. PitchBook subscribers can also explore the full insurtech market map with details on 650 companies.

Commercial insurtech companies, which sell policies to businesses, fall into four subsegments:
 
  • Business liability: Insurance that protects businesses against claims of faulty products, defects, bodily injuries, property damage and other losses.

  • Cyber insurance: Insurance that can provide additional protection from cyberattacks, acting as a backstop for lost opportunity costs, liability and other potentially catastrophic losses typically not covered under commercial policies.

  • Employment: Workers' compensation insurance and employment practices liability insurance.

  • Loss protection: Protecting customers from damages and other losses.

Growing cyber-risk, along with the changing nature of digital attacks that leaves gaps in coverage, has convinced many companies to pursue standalone cyber insurance policies, according to PitchBook analyst Robert Le.  

This trend is reflected in the data: Of the five most well-funded companies in the commercial segment, three are cyber insurance companies.

Ten cyber insurance companies have raised $1.2 billion, which is nearly 31% of the cyber insurance subsegment’s total value. This includes companies like Coalition, a cyber-risk platform developer and Corvus, a commercial insurance data platform developer.

Related read: Infosec startups scale to secure the cloud

Featured image by erhui1979/Getty Images

Related content