Insurtech funding in Q3 marks US$1.1bn milestone amid surge in P&C

The worldwide insurtech sector surpassed US$1.1 billion in new funding through the third quarter of 2023. This progress, representing a 19.8% improve, was primarily propelled by a 25.5% quarter-on-quarter surge in property and casualty insurtech funding.

For its newest World Insurtech Report, Gallagher Re revealed that the surge occurred regardless of the typical deal dimension dropping by 16.4% to a six-year low of US$10.3 million. Moreover, life and well being insurtech funding skilled a 4.5% lower to US$166.6 million.

The report notes an increase within the variety of quarterly insurtech offers, surging from 97 in Q2 to 119 in Q3, marking the very best rely since Q3 2022 (140). P&C insurtech witnessed 90 offers, and life and well being Insurtech noticed 29 offers. Notably, US-based insurtechs accounted for 55.4% of the worldwide insurtech deal share in Q3 2023, marking the very best degree since Q1 2020.

Early-stage insurtech funding noticed a 24.7% quarter-on-quarter improve to US$269.45 million, coupled with an increase in early-stage offers from 51 in Q2 to 71 in Q3. Nevertheless, the typical mid-stage Collection B and C funding for the yr dropped to its lowest complete since 2014, standing at US$24 million. Firms falling into this class raised US$323.36 million, constituting 29.5% of complete Insurtech funding throughout 18 offers in Q3.

The quarter noticed two mega-round investments, with each the Boston-based householders’ insurance coverage platform Brazenly and the San Francisco cyber platform Resilience securing US$100 million in Collection D rounds.

Concerning (re)insurers’ involvement, the report reveals that 34 insurtech investments have been made within the quarter, primarily concentrated within the early-stage class (61.8%). Q3 noticed 10 seed/angel-stage investments and 11 Collection A investments by commerce gamers. MassMutual Ventures led the exercise with seven investments, adopted by Avanta Ventures (a part of CSAA), MS&AD Ventures, and Munich Re Ventures, every making three or extra investments.

“We proceed to maneuver by way of a vital inflection level of world insurtech, from part one, the ‘nice experiment’ to part two targeted on sustainable, worthwhile enterprise outcomes by way of precision, not quantity. The third quarter supplied us with some very thought-provoking examples of what this alteration appears to be like like at a person firm degree, for each insurtechs and traders,” mentioned Dr Andrew Johnston, Gallagher Re world head of insurtech.

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