With a total market capitalization of $1.911 trillion, the 30 largest publicly traded insurers are sizable players in the global economy.
Even so, they attain only one quarter of the combined market capitalization of BigTechs Facebook, Apple, Microsoft, Google, and Amazon (grouped under the acronym FAMGA) and Tesla, Capgemini notes in its World InsurTech Report 2021. The consulting firm reports that these six BigTechs achieved stock market growth of USD4.8 trillion from 2018 to 2020, which is 2.5 times the total market capitalization of the world's 30 largest insurers.
Given the sharp rise in investments in tech companies, Capgemini points out in its World InsurTech Report 2021 that InsurTechs should be monitored closely. With a market capitalization of $22 billion at the end of 2020, Capgemini expects this figure to increase substantially over the next few years.
The consulting firm backs its projections with data from CB Insights, which estimates a 252 per cent increase in funding to InsurTechs globally from the first quarter of 2018 to the corresponding quarter of 2021. Mergers and acquisitions also ballooned by 115 per cent during that period, Capgemini's 2021 report states, adding that more and more InsurTechs are going public in 2021.
This article is a Magazine Supplement for the October issue of the Insurance Journal.
