In the third quarter, the InsurTech sector attracted $1.1 billion in funding
In the third quarter of 2023, companies from the insurance technology sector InsurTech attracted $1.1 billion in funding worldwide. According to a report by insurance and reinsurance broker Gallagher Re, there were 119 deals in the reporting quarter, compared to 97 deals in the second quarter.
According to the UkrStrahuvannya online resource with reference to the Gallagher Re report, the average deal size fell by 16.4% on a quarterly basis to a six-year low of $10.3 million, and investments in Life&Health InsurTech fell by another 4.5% on a quarterly basis to $166 .6 million
More than half of the total financing volume is in the US (55.4%), and the share of early-stage financing of InsurTech companies was almost a quarter of the total volume.
“We continue to move through a critical inflection point in global InsurTech: from phase one, the ‘grand experiment’, to phase two, focused on sustainable, profitable business outcomes through precision, not volume,” commented Head of Gallagher Re.
As a reminder, in the second quarter, 43 corporate investments in InsurTech were received from insurers, of which 34.9% were directed to startups in the US – more than in any other country. The average volume of the deal was $12.4 million, which is 16% less than the same figure a quarter earlier.