Global insurtech funding dropped from £6.3bn in 2022 to £3.58bn in 2023, marking the lowest level since 2018. Funding across the property and casualty (P&C) sector fell by 35.4% to £3.50bn, while L&H funding dropped by 59.8% to £88m. Despite the drop, there are signs of a mature and healthy market, according to Andrew Johnston, Global Head of Insurtech at Gallagher Re. Johnston highlighted that deals valued at more than £3.98bn within the insurtech space increased by 21.7 percentage points quarter-on-quarter.
Insurtech funding plummets to lowest level since 2018
Insurtech investment reached a four-year low in 2023, according to a report by Gallagher Re. Global funding levels fell to £3.58bn from £6.3bn year-on-year, the lowest level seen since 2018. The study found that lower funding for property and casualty insurers drove the fall. Funding in this area dropped by 35.4% to £3.50bn. Funding for life and health insurers also dropped, this time by 59.8% to £88m. Deal count also fell from 521 in 2022 to 422 in 2023.
Reinsurers increase investment in private technology
Global reinsurers are increasingly investing in insurtech, according to a report by Gallagher Re. The report found that 2023 saw an increased interest in private technology investments by reinsurers, with a record 148 transactions taking place. This signifies a healthy and mature market, according to Andrew Johnston, Group Chief Executive of Gallagher Re. In total, deals valued at more than £3.98bn within the insurtech space increased by 21.7 percentage points in 2023, compared to 2022.