Investments in the global InsurTech sector exceeded $1.1 billion in 3Q 2023
Investments in the global InsurTech sector will reach $1.1 billion in the third quarter of 2023. This was mainly driven by a 25.5% quarter-on-quarter increase in funding to the property insurance sector.
Growth came as the average deal size fell 16.4% to a six-year low of $10.3 million, according to a Gallagher Re report, while investments in other life and health insurance products fell another 4.5% compared to with the previous quarter to $166.6 million.
Other tech funding rounds rose from 97 in the second quarter to 119 in the third quarter, the most since the third quarter of 2022. Of these, 90 deals were recorded in the property insurance sector, and 29 in the life tech and medtech sector.
US insurtechs accounted for 55.4% of funding in the global InsurTech sector in Q3 2023, the highest level since Q1 2020. Gallagher Re’s report also noted that early-stage startup funding rose 24.7% quarter-on-quarter to $269.45 million, as the number of early-stage deals increased from 51 in the second quarter to 71 in the third quarter.
Reinsurers made 34 investments in the other tech segment, most of which – for the fifth quarter in a row – were in early-stage startups (61.8%).