Funding in Southeast Asia’s InsurTech sector slumped sharply in 2024 as investors adopted a more cautious stance amid global economic headwinds, according to a report by data intelligence platform Tracxn.
Total investments fell 61 percent to $193 million from $495 million in 2023, reflecting a broader downturn in funding across sectors.
The report, which tracks private market investments, noted that 2023 marked the peak of InsurTech funding in Southeast Asia.
The steep decline in 2024 came on the back of persistent macroeconomic uncertainties including elevated inflation, rising interest rates, and broader geopolitical tensions affecting the region.
“The combination of these factors has created an environment where investors are more circumspect, leading to lower overall funding levels,” the report said.
Year-on-year figures indicate that funding in 2022 stood at $245.6 million, meaning the 2024 total represents a 21 percent decline from that period as well.
Seed-stage funding dipped 16 percent to $7.7 million from $9.2 million in 2023, while early-stage investments plummeted over 80 percent, falling from $353 million last year to $38.5 million this year.
Late-stage funding, however, bucked the trend with an 11 percent increase, rising from $133 million in 2023 to $147 million in 2024.
Quarterly trends showed the fourth quarter as the most active, with $105 million raised—almost half of the year’s total.
The latter half of 2024 raised $111 million, a 35 percent jump over the first half’s $82 million, though still significantly lower than the $231 million recorded in the second half of 2023.
Singapore maintained its position as a regional hub for tech startups, ranking as the fourth highest-funded country in FinTech investments, trailing behind the United States, United Kingdom, and India.
Meanwhile, manufacturing activity is booming in Indonesia and Vietnam as global corporations set up new units, drawn by competitive labour costs and supportive FDI policies.
In a market with fewer high-value rounds, Bolttech emerged as a notable player, raising $100 million in its Series C round—the only funding round above the $100 million mark in 2024.
Investment segments showed mixed fortunes: insurance IT companies secured $135 million (down 47 percent from 2023), internet-first platforms attracted $51.7 million (a 78 percent drop), and employer insurance gathered $6.5 million (down 65 percent year-on-year).
Despite the funding downturn, Tracxn underscored the resilience and economic adaptability of Southeast Asia, citing strong government support and the region’s growing appeal to global tech giants as reasons for optimism in future growth.
