Small Business Confidence Up in July
The Canadian Federation of Independent Business (CFIB) announced that Canadian small and mid-sized business confidence rose throughout July. The CFIB Business Barometer Index rose two points to 68.3, a level it has held earlier in the year. The CFIB concluded that Canadian business owners must not be expecting any backlash from debt concerns in the US and Europe.
Leading the pack in confidence are the central provinces where prospects seem to have brightened. The most optimistic businesses reside in Alberta, the only province with an index score over 70. On the lower end of the index were Prince Edward Island and Nova Scotia businesses, coming in at the low 60s.
When asked about the general state of business, most business owners say they’re satisfied resulting in 41 per cent answering that it’s “good” and only 13 per cent saying it is “bad.” Even better for Canadian employment levels, 18 per cent of businesses say they plan to add to their full time staff within the next three to four months compared to only 10 per cent who believe they will cut back.
SEE RELATED STORIES FROM THE WDM CONTENT NETWORK:
- Confidence in Canadian Small Businesses Highest since 2005
Canada's Economic Hotspots: Who's Up and Who's Down
July 2011’s results are based upon 931 responses, collected from a random sample of CFIB members via online web survey. 19 times out of 20 outcomes are statistically accurate within +/- 3.2 per cent.
The Business Barometer Index measures on a scale between 0-100. Any conclusion above 50 means Canadian business owners expect enterprise performance to strengthen in the next year. Previous results have shown that when index levels range between 65 and 75, it means the economy is growing.
CB Insights: US Insurtechs Compete In A Now Global Market
In the first half of the year, insurtech companies around the world have raised US$7.4bn, nearly doubling their funding in Q2. According to Digital Insurance, insurtechs have raised US$4.8bn in Q2—an 89% increase in funding from Q1. But US firms are no longer the sole beneficiaries.
What Are the Stats?
Out of the 15 Q2 mega-rounds—those that top US$100mn—only eight included American firms. Pretty good, you might say. That’s over half! But US companies only made up 38% of the deals, which marks a 10% drop from Q1 and a 12% drop from 2020. Technically, therefore, US insurtechs are less influential than they’ve been in the past. But who says this is a bad development?
Despite my American citizenship, I’d argue that a more globally diverse insurance market is only for the best. Many of the world’s citizens who could most benefit from improved insurance services live outside of the States—and deserve local, tech-savvy services.
Why Does This Matter?
You’re always going to see the typical insurtech contenders from Western countries. For instance:
- German-based wefox: US$650mn Series C
- UK-based Bought By Many: US$350mn Series D
- US-based Collective Health: US$280mn Series F
But it’s critical that we address risk across the world. American insurtechs might be some of the most technologically skilled firms in the industry, but it’s not their first goal to address floods in Southeast Asia, crop destruction in China, and COVID complications in South Africa. That’s why we should celebrate that the recent Q2 round included insurtechs from 35 different countries.
According to CB Insights’ Q2 2021 Quarterly InsurTech Briefing, this was the first time that they’d observed insurtech activity in Botswana, Mali, Romania, Saudi Arabia, and Turkey. And ‘from a product, service, distribution, and underlying risk perspective, we—as a society and as an industry—are moving at an unprecedented speed’, says Dr. Andrew Johnston, Global Head of Willis Re InsurTech.
Just ask CB Insights. InsurTech value propositions have resonated with the world.