Funding rounds raising millions of dollars are pointing to a bounce back in insurtech investment this year after a slump in the international market during the pandemic, GlobalData says.

Wefox, a German-based venture focusing on achieving a better loss ratio when measuring customers risks, raised $US650 million ($839 million) in a series C funding round and reached a $US3 billion ($3.9 billion) evaluation on June 1.

Bought by Many, a pet insurer using customer data to create tailored and flexible policies, raised $US350 million ($452 million), while vehicle data analytics firm Wejo launched a special purpose acquisition company, raising $US330 million ($426 million).

“Pre-pandemic it was rare for insurtechs to raise hundreds of millions of dollars in one funding round, let alone be able to reach a $US1 billion ($1.3 billion) evaluation,” GlobalData Insurance Analyst Jazmin Chong said.

“However, the pandemic has accelerated the demand for digital and personal insurance services and increasing consumer demand for digital services shows no sign of abating.”

The recent strong raisings come after global investment in insurance dropped 17.3% last year to $US3.5 billion ($4.5 billion), according to GlobalData analytics.

Businesses focused on “enabling business solutions” were worst hit with a 66.8% drop, but insurtechs targeting artificial intelligence capabilities experienced a 6.1% increase.

Ms Chong says insurtechs focusing on product personalisation through data analytics and digital claims processes have continued thriving.

“As insurtech continues to grow, these companies could prove to be real contenders to the well-established insurers in the industry,” she said.