Gallagher Re has released the latest global Insurtech research report for Q3 2024.
The 2024 Global InsurTech report series from the team Gallagher Re examines the fast-growing impact of Artificial Intelligence (AI) on the insurance technology industry, dissecting AI’s functions and processes within the (re)insurance value chain.
This third report from Gallagher Re in the series will mainly focus on ‘central business operations’ which includes “back-office process functionality, tax processing, policy administration and other operational processes.”
As per previous reports, Gallagher Re also spotlight key InsurTech companies, engage with industry thought leaders, and “provide detailed insights into the latest InsurTech investment trends.”
Key findings for the Q3 2024 from Gallagher Re’s Insurtech report are as follows:
- InsurTech notably saw $1.38 billion in global funding during the third quarter of 2024, which is the “highest level since Q1 2023”
- Of that $1.38 billion, 55.5% of global InsurTech funding reportedly went to $100 million+ mega-round deals
- InsurTech saw 77 deals in Q3’24 — a nearly “4-year low”
- Extremely pertinent to this year’s theme of artificial intelligence, 63.4% of Q3 2024 InsurTech deals went to AI-centered InsurTechs
54.5% of Q3’24 InsurTech deals went to InsurTechs focusing on central business operations - The majority of tech investments from (re)insurers were mid-stage funding rounds
As covered in August of this year, the Insurtech 50 is CB Insights’ annual list of the 50 most promising private insurtech companies in the world.
This year’s winners are working on everything from AI assistants “to embedded insurance.”
CB Insights had in August 2024 unveiled the third annual Insurtech 50 — a list of “the 50 most promising private insurtech companies in the world.”
Highlights from the 2024 cohort include:
- The 50 winners include 23 tech vendors and 27 insurers and intermediaries.
- $5.6B in equity funding “raised over time, including $1B in 2024 so far (as of 8/19/24).”
- Forty percent of winners are early-stage insurtechs “addressing everything from wildfire risk to genAI-powered workflow automation.”
More than a dozen countries represented, “spanning Asia, Australia, Europe, and North America.”
500+ business relationships since 2020, including with “industry leaders like Swiss Re and Tokio Marine.”
CBInsights research team picked winning companies “based on CB Insights datasets, including deal activity, industry partnerships, team strength, investor strength, patent activity, employee headcount, and proprietary Commercial Maturity and Mosaic scores.”
CBInsights also dug into Analyst Briefings submitted directly to them by startups.
The cohort has raised $5.6B “across 210+ disclosed equity deals to date (as of 8/19/24). Next Insurance and Coalition lead in disclosed equity funding among the cohort ($1.1B and $770M, respectively).”
In 2024 (as of August), this year’s winners have “raised $1B across 38 disclosed equity deals.”
Just 5 deals (as of August 2024) account for more than half of this funding total:
- Altana AI — $200M Series C
- ICEYE — $93M Series D
- Vitesse — $93M Series C
- Cover Genius — $80M Series E
- Hyperexponential — $73M Series B
