The InsurTech sector attracted $1.27 billion, which shows the growing interest of investors
The global insurance technology (InsurTech) sector saw $1.27 billion in funding in the second quarter. This was the highest quarterly result since the beginning of 2023, but still not enough to match the high numbers of the second quarter of 2020.
The company emphasizes that the increase in the total volume of financing occurred not so much due to an increase in the number of transactions, but primarily due to an increase in the average value of one transaction. The Internet resource of UkrStrahuvanny knows about this from the report of the international reinsurance company Gallagher Re.
According to a report by Gallagher Re, a third of deals were done by AI-focused insurtechs in the reporting period, while risk-focused insurtechs made 40% of deals.
“The application of AI to risk management functions such as pricing and underwriting has significant potential, but as the industry continues to adopt AI, it also needs to address the regulatory challenges associated with it,” commented Head of InsurTech at Gallagher Re.