AI boosts insurtech funding growth

Global insurtech funding rose 8.2% from the second quarter to $1.38 billion during the third quarter of 2024 and reached the highest level since first-quarter 2023, according to a report Wednesday from Gallagher Re, the reinsurance business of Arthur J. Gallagher & Co.

Artificial intelligence bolstered funding as 63.4% of third-quarter 2024 insurtech deals went to AI-centered companies.

Funding was also up 25.6% over third-quarter 2023, report data showed.

The U.S. again led insurtech funding, garnering 52% of the 77 deals during the third quarter. France and Canada followed distantly with 6% each followed by India with 5% and the U.K with 4%.

Property/casualty insurtechs saw 49 transactions while the life and health sector had 29 deals.

Just over half the quarter’s funding, 55.5%, was supplied through so-called “mega round deals” of $100 million or more, the report said.

Exactly half, 50%, went to seed/angel funding rounds, with 28%, and series A funding, at 22%.

The report called technology funding “vibrant” and said “our industry continues to be very willing to support technological innovation.”