Insurtech funding in Q2 2024 highest in five quarters

Global funding bagged $1.27b.

Global insurance technology (insurtech) funding in the second quarter of the year (Q2 2024) reached $1.27b, marking the highest level in five quarters. 

Early-stage insurtech funding also increased significantly to $377.6m, the highest since Q1 2023. The average deal size surged to $18.5m, the largest since Q3 2022, revealed Gallagher Re in its latest Global InsurTech Report Q2 2024.

However, the overall deal count fell to 82 in Q2 2024, the lowest quarterly number since Q2 2020. 

Notably, one-third of Q2 2024 insurtech deals were directed toward AI-centred insurtechs, and 40% were focused on risk-related solutions. The rise in funding levels is attributed to nearly doubling average deal sizes.

Looking back at H1 2024, despite a relative downturn in global insurtech investments in Q1, the industry maintained a strong focus on technology businesses. 

Q1 saw no mega-round deals, resulting in lower overall totals and smaller average deal sizes. The median average analysis for Q1 showed a concentration of deals around $10m, indicating more realistic valuations and a democratization of investor capital.

The trend continued into Q2, with only one mega-round deal—a $165m Series D round for health insurer Sidecar Health—contributing significantly to the increased funding. 

Despite this, H1 2024 funding is only $119m short of H1 2023 totals, reflecting ongoing strong interest in the sector.

Deal count saw a 23.4% decline from 107 in Q1 2024 to 82 in Q2 2024, with reductions in both Property & Casualty and Life & Health sectors. 

This represents the lowest quarterly deal count in four years, echoing the trend observed in Q2 2020.