Global insurtech funding rebounded during the second quarter of 2024, according to Gallagher Re. Sector funding rose to $1.27 billion over the period, its highest point since the first quarter of 2023 and a 39.7% increase from the previous quarter, the data showed, with overall increases attributable to a near doubling of average deal sizes. The average deal jumped to its highest level since the third quarter of 2022 at $18.46 million, despite recording the lowest number of deals since the second quarter of 2022 at just 82. "The deal count decline is attributable to a pullback in seed stage deals," Gallagher Re's global head of insurtech practice, Dr. Andrew Johnston, wrote in the report. "Thirty-three of the 82 deals went to insurtechs focused on risk organization, or pricing, underwriting and portfolio optimization support," he added. Other key insights from the study include:

• Funding to P&C and L&H insurtechs increased quarter-on-quarter to 41% and 37%, respectively.
• Early-stage insurtech funding increased 34.9% quarter-on-quarter.
• Nearly 33% of second quarter deals went to AI-centered insurtechs.
• Over 42% of second quarter deals went to risk-focused insurtechs.

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