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.
"There is a growing emphasis on hyper-personalization, leveraging advanced data analytics to offer tailored insurance products and services that meet individual needs," CEO of Pinpoint Predictive Scott Ham told PropertyCasualty360.com in a recent interview. "The adoption of AI and machine learning will significantly impact both insurance carriers and consumers. For carriers, these technologies streamline operations, enhance risk management, and reduce operational costs," he said. "Consumers will benefit from more personalized insurance offerings, quicker claims processing, and improved customer service experiences. As insurers better understand. Individual risk and behaviors, they can offer more competitive pricing and innovative products." The slideshow above illustrates the worst U.S. states for digital businesses as selected by DesignRush.  See also:
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