More than $12 billion has been invested in insurance tech ventures in the last five years, and at least one venture capitalist believes $11.88 billion is set to vanish. This is what Jonathan Kalman, founding partner at Eos Venture Partners in New York told the audience at a recent insurance industry event, Business Insurance reports.
“We at Eos believe that 99% of that $12 billion is going to be flushed down the toilet,” Kalman said. “Of that $12 billion, most of it is going to get acquired and rolled into incumbent business.”
Mark Purowitz, insurance mergers and acquisition and insurtech leader for Deloitte Consulting LLP in New York told Business Insurance the reason why: “we haven’t really centered on what we’re doing, why we’re doing it, the mechanisms by which we need to look at and address these investments, and the impact of the return that we are looking to get out of it.”
We have a look at why, and it’s much ado about individualization, in our story Insurance Industry Preps for Post-Digital World.
For the full story on wasted insurance VC dollars, check out the full story on Business Insurance.