Private Equity News: Private equity drives demand for recruitment in insurance technology

Private equity owned businesses account for almost half the recruitment briefs for high-salaried positions in insurtech.

Demand for IT leaders in the insurance industry has shot up, recruiters say — with private equity owned businesses accounting for almost half the recruitment briefs for high-salaried positions.

TritonExec, a global executive search firm, said demand for execs working in the so-called “insurtech” field is now so strong it has eclipsed demand for other specialisms in financial technology. The company has received 178 insurtech assignments year-to-date, compared to 165 in other fintech fields, it said.

The highest paid and most sought after roles include chief information officers, chief digital officers, chief operating officers and transformation leaders, TritonExec said.

Among firms recruiting for executives is Genpact, part-owned by Bain Capital and the Singapore’s sovereign wealth fund GIC, and San Francisco-based Gryphon Investors.

“With nearly 50 per cent of our insurtech briefs coming from private equity, this burgeoning market is one of the largest drivers of client activity compared to a few years ago where the industry wasn’t ready for the innovation we’re seeing now,” said Georgina Pawley, partner at TritonExec.

Private equity’s interest in firms providing technology to insurers has been rising. Global investment in “insurtech” rose to $3bn in 2018, up from $494m in 2014, according to data company Fintech.Global. Deals in 2018 include Blackstone and Goldman Sachs’ $115m investment in Milan-based Prima Assicurazioni.

Pawley said the insurance industry is “playing catchup at a rapid pace” on technology investment, with private equity ownership a key driver of efforts to bring in new IT talent.

View the original article from Private Equity News here.