Insurtech funding sees its strongest quarter in over a year despite deal volume sinking to its lowest point since 2016, according to an extensive update from CBInsights.
CBInsights notes in its latest repot that global insurtech funding “increased 44% quarter-over-quarter (QoQ) to $1.3B in Q2’24 — outpacing the quarterly growth seen across the broader venture and fintech landscapes.”
CBInsights explains that they provide a deep dive on the state of insurtech and here are some key takeaways:
- Global insurtech funding increases to $1.3B in Q2’24 — the highest level since Q1’23. Insurtech funding grew 44% QoQ — led by 50% growth in funding to P&C insurtechs, from $0.6B to $0.9B. Funding to life & health (L&H) insurtechs also increased QoQ, ticking up from $0.3B to $0.4B.
- Insurtech deal count falls 27% QoQ to 82, the lowest level since 2016. The drop was nearly proportional across P&C and L&H: P&C deals fell 28% to 54 deals, while L&H deals decreased by 26% to 28 deals. On a percentage basis, the decline in insurtech deals outpaced the broader venture and fintech environments (where deal activity fell 7% and 16% QoQ, respectively).
- Median insurtech deal size increases 25% from $4M in 2023 to $5M in 2024 YTD. Only 2021 has seen a higher median deal size over the past 10 years. However, while the median early-stage insurtech deal size is at a record-high $4M this year, late-stage deal size ($31M) is the lowest it’s been since 2018. Insurtech mega-rounds (deals worth $100M+) were nearly nonexistent in Q2, with Sidecar Health, a health insurer, raising the quarter’s only such deal (a $165M Series D).
The report from CbInsights further noted that Insurtech sees “its first IPOs since Q3’22. Two insurtechs IPO’d in Q2’24 — Digit Insurance, an India-based insurance provider, and Saudi Arabia-based Rasan, which primarily focuses on auto insurance sales and vehicle services. Both IPOs occurred amid a broader lull in global IPO activity.”
The CBInsights report further revealed that Europe’s “share of insurtech deals “reaches 35% — a record high. Deals to Europe-based insurtechs stayed roughly steady, ticking up from 28 in Q1’24 to 29 in Q2’24.”
Comparatively, the US saw insurtech deal count “fall from 61 to 40.”
The CBInsights report also mentioned that funding “to Europe-based insurtechs “reached a 7-quarter high ($0.5B), driven by two $93M deals for Finland-based ICEYE — a provider of data from satellite imagery — and UK-based Vitesse, a claims payments processor.”