Insurtechs raised $US2.1 billion ($2.7 billion) in capital during the December quarter, taking the investments received globally last year to a record $US7.1 billion ($9.3 billion) from 377 deals, Willis Towers Watson (WTW) says in a quarterly report.

Property and casualty insurtechs accounted for 67% of the investments made in the December quarter and 73% of the 103 transactions made during the period.

The US grabbed 44% of the 103 transactions that took place in the December quarter. China had 7% while the UK, France and India each took 6%.

“Overall, 2020 has been a fascinating year for insurtechs,” Wills Re Global Head Insurtech Andrew Johnston said. “Anyone who doubted the value and role that technology might play in our industry from an operational perspective has been silenced.

“Similarly, anyone who doubted the market appetite for gig economy products and small business products has most likely been silenced also. Investment has polarized between numerous small checks and a handful of enormous raises, split between non-industry investors and industry investors, respectively.

“And to reiterate a consistent message from us throughout the year, many insurtechs probably feel vindicated that our industry has been forced to realise the value of technology.

The largest deal of the quarter belonged to California-based Hippo, which raised $US350 million ($457 million) in a Series F investment round from Mitsui Sumitomo Insurance Venture Capital.

Hippo offers intuitive and proactive home insurance by using data, including municipal building records, and technology, such as satellite imagery and smart home devices, to streamline the quoting and onboarding experience.