PriyaPatel
TLDR:
- Global insurtech funding dropped to $912.25 million in Q1 2024, the lowest since Q1 2020.
- Despite the overall decline, early-stage funding and AI-centered insurtechs attracted investment.
Insurtech funding in the first quarter of 2024 dropped to its lowest level since 2020, totaling $912.25 million globally, according to a report from Gallagher Re. This decline was largely due to the absence of deals exceeding $100 million in the quarter. However, early-stage insurtech funding increased by 26.5% in Q1, with AI-centered insurtechs accounting for a significant portion of deals.
Key Details:
Property & casualty insurtech experienced its lowest funding since Q3 2018, while life & health insurtech funding remained relatively stable. Despite the funding decline, early-stage funding and deal counts increased in both sectors. AI-centered insurtechs received significant funding, with distribution-focused insurtechs dominating the number of deals in Q1 2024.
Insurers and reinsurers made 37 tech investments in Q1, focusing on early-stage and U.S.-based companies. Approximately $55 billion has been invested in insurtech globally to date, with a growing emphasis on profitability driving the industry forward.
