Investment into insurtechs has risen by more than a third this year, figures reveal.
Reinsurance broker Gallagher Re’s Q1 2023 Global Insurtech Report reveals that new funding for the global insurtech sector rose to $1.39bn during the first quarter of 2023, up 37.6% from $1.01bn in the final three months of last year.
Property and casualty insurtech funding drove the investment increase, surging by more than 53% to $967.89m. Life and health funding also grew, rising by 9.6% to $420.73m.
Mega-round funding – when a start-up’s fundraising round reaches $100m or more – contributed 12.9% of total insurtech investment in the first quarter of this year; this was the lowest level since the first three months of 2020. Gallagher Re global head of insurtech Andrew Johnston said this year “may be the beginning of a new era” for insurtech as 2021 “undoubtedly marked” a funding peak, fuelled by Covid uncertainty.
“Founders are now thinking about long-term sustainability and growth, and realising their businesses will need to pull the plough themselves, reliant on their own capabilities and revenues,” he added. “A significant upside seems to be the genuine willingness of many reinsurers and insurers, brokers and agents to adopt technology.”