Global insurtech funding hits seven-year low in 2024

Australia was one of the markets with the largest share decrease.

Global insurance technology (insurtech) funding fell to its lowest level in seven years in 2024, reflecting a sharp decline in investment activity, according to Gallagher Re.

In the region, South Korea was noted as one of the markets with the largest deal share increases from 2023 to 2024, which saw a 1.21 percentage point (ppts) increase to 1.45%.

In contrast, Australia was one of the markets with the largest share decrease of 1.37 ppts to 0.29%.

Funding reached $4.17b, with the drop primarily driven by a 24.3% decline in property and casualty (P&C) insurtech investment, which fell from $3.42b in 2023 to $2.59b in 2024. 

In contrast, life and health (L&H) insurtech funding rose 53.6% year-over-year to $1.66b.  

The number of insurtech deals also declined, falling 18.5% from 422 in 2023 to 344 in 2024, marking a six-year low.  This coincided with a decrease in venture investors, from 574 in 2023 to 466 in 2024.  

Despite the overall downturn, early-stage funding and deal sizes saw gains. Early-stage insurtech funding rose 8.8% year-over-year to $1.22b, whilst the average deal size increased 14.6% to $14.67m. 

Mega-round funding remained stable, dipping slightly from $969m in 2023 to $930.17m in 2024.  

The fourth quarter saw a steep decline, with global insurtech funding dropping 50% quarter-over-quarter to $688.24m, the lowest level since second quarter 2018 (Q2 2018). 

P&C insurtech funding fell 43.5% to $408.38m, whilst L&H insurtech funding dropped 57.4% to $279.86m.

The decline was driven by smaller deal sizes, which fell from $20.90m in Q3 to $11.10m in Q4 2024. Unlike Q3 2024, which saw 55.5% of funding go to $100m+ mega-round deals, Q4 recorded no mega-rounds.  

Early-stage insurtech funding also declined, falling 47.8% quarter-over-quarter to $193.77m.

However, the total number of deals in Q4 2024 rose slightly to 78. Only two startups secured deals above $50m in Q4 2024: India-based SarvaGram, which focuses on life and health products for rural consumers, and Players Health, a managing general agent specialising in sports-related risks.