b'TABLE OF CONTENTSTECHNOLOGYnew trends in policyholder preferences, asInsurtech Investment and Transactionspolicyholders began to realize and appreciate the differences in insurance product and serviceSome 2020 Trends Continued in 2021offerings that fit their changing needs andIn our previous Year in Review, we commented on preferences during uncertain times. the following trends in 2020: (i) the number and size Despite the emergence of vaccinations againstof insurtech fundings increased; (ii) investors COVID-19 in late 2020 and their widespreadfavored later stage insurtechs more than their adoption throughout 2021, as well as the institutionearlier-stage counterparts; (iii) IPOs and mergers of travel bans and other protective measures inwith publicly traded special purposes acquisition various US and non-US jurisdictions, COVID-19 didcompanies (SPACs) abounded; and (iv) not dissipate in 2021 as many had hoped. The US, incollaboration and partnerships between incumbents particular, saw a surge of new cases starting inand insurtechs were dynamic. These trends December 2021, under the influence of the highlycontinued in 2021.contagious Omnicron variant of COVID-19. As aAccording to data compiled by CB Insights, in 2021, result of these developments, business operations$15.4 billion was invested globally across 566 insurtech largely remained remote throughout 2021, and manydeals, setting yet another insurtech investment record. of the trends that we saw emerging in the insuranceThis funding dollar amount far surpassed year-end industry in 2020 have continued. Despite theinvestment totals in prior yearsand, indeed, was 90% pandemic, the insurtech industry continued tolarger than the aggregate investment in insurtechs the attract significant investment in 2021, and the paceyear prior ($8.1 billion invested in 2020). The number of of adoption of technology and innovation by theinsurtech investments also grew 21% since 2020,insurance industry only continued to accelerate. from 468 to 566.Figure 1. Insurtech quarterly funding trends with transaction volume and dollar amount, 2015 - 2021 Source: CB InsightsMAYER BROWN |119'