PriyaPatel
TLDR: Global insurtech funding decreased by 43.7% in 2023, with property/casualty insurtech funding dropping by 35.4% and life & health funding dropping by 59.8%. Although the funding total was the lowest since 2018, it still amounted to $4.5 billion. Andrew Johnston, global head of insurtech for Gallagher Re, noted that investors are showing a more disciplined approach to investing compared to previous years. Deal count also decreased by 19% in 2023.
According to a report from Gallagher Re, global insurtech funding declined by 43.7% in 2023, reaching $4.5 billion. The property/casualty sector saw a funding drop of 35.4%, while the life and health sector experienced a 59.8% decline. Despite the decrease, Andrew Johnston, global head of insurtech for Gallagher Re, stated that $4.5 billion is still a significant amount of capital. He also mentioned that investors are displaying more discipline in their investment approach compared to previous years.
The report also revealed that deal count declined by 19% in 2023, with a total of 422 deals. The first quarter of the year saw the highest amount of insurtech funding at $1.389 billion, while the second quarter had the lowest at $917 million. The number of deals fell from 119 in the third quarter to 100 in the fourth quarter.
The average deal size, however, increased from $10.4 million in the third quarter to $14.1 million in the fourth quarter. The majority of funding, 48%, was concentrated in the United States, followed by the United Kingdom with 8% and China with 6%. Johnston noted that corporate venture capital, such as technology investments from established companies, is becoming more prominent, while independent venture capital may be more sensitive to higher interest rates.
