b'Technology InsurtechIntroductionIn commenting on insurance technology and innovation developments in our 2019 Year in Review, we questioned how fast and at what scale insurance carriers, brokers, service provid-ers and technology companies would accelerate their insurtech capabilities in 2020. At the time of publication in 2019, we had not anticipated the magnitude of a global pandemic and the extent the impact would have on the insurance industry. From the perspective of insur-ance technology and innovation, COVID-19 forced the insurance industryinsurance businesses and regulators aliketo re-examine the application of technology and innovation to provide better services and products to policyholders. Policyholders also began to realize and appreciate differences in the delivery of insurance products, customer service and pricing to fit their changing needs and preferences during uncertain times in which there were many unknowns in terms of public health, business sustainability and just normal everyday lifestyle choices that we may have taken for granted prior to the pandemic.There were several insurance regulatory developments in 2020 that helped to progress the further implementation of technology and innovation in the insurance industry. The state-based regulatory system is a key dynamic impacting the rate at which the insurance industry embraces technology. Insurance regulation traditionally focuses on protection of the con-sumer and regulator views on the use of emerging technologies are naturally colored by that lens. In 2020, we saw regulators, at the state and National Association of Insurance Commissioners (NAIC) level, continuing to embrace collaboration with the industry enabling greater digital communications and more transparent online-driven insurance services between insurance companies and consumers. Insurtech Investment and TransactionsWe noted in our 2019 Year in Review that insurtech investment, collaboration and M&A activity would continue to grow as incumbent carriers increasingly implemented new technology and innovation to find ways to analyze data at a more efficient way while being cognizant of compliance with insurance and consumer protection regulations. Although insurtech investments slowed down in the first quarter of 2020, investment activity quickly recovered for the rest of 2020 powered by several large initial public offerings (IPOs). According to data compiled by CB Insights, over $7 billion was invested globally in insurtech in 2020 across 377 deals, setting another insurtech investment record. This compared to over $6 billion invested across 314 deals in 2019, over $4 billion invested across 202 deals in 2018 and over $2 billion invested across 218 deals in 2017. 90GLOBAL INSURANCE INDUSTRY | YEAR IN REVIEW2020'