Global InsurTech funding fell to a seven-year low in 2024: Gallagher Re

Global InsurTech funding fell to a seven-year low in 2024, declining 5.6% year-over-year from $4.51 billion in 2023 to $4.25 billion in 2024, according to a recent Gallagher Re report.

This data is from Gallagher Re’s Global InsurTech Report, the fourth and final instalment in its 2024 series on AI’s role in the re/insurance value chain.

Gallagher Re attributed the decline to a 24.3% drop in P&C InsurTech funding, which fell from $3.42 billion in 2023 to $2.59 billion in 2024. Meanwhile, Life and Health InsurTech funding rose 53.6% year-over-year to $1.66 billion.

The number of InsurTech deals also fell to a six-year low, declining even more sharply than funding, down 18.5% from 422 deals in 2023 to 344 in 2024. Gallagher Re noted that this corresponds with a decrease in venture investors in the sector, which fell from 574 in 2023 to 466 in 2024.

Despite the overall decline, early-stage InsurTech funding was a bright spot, rising 8.8% year-over-year from $1.12 billion in 2023 to $1.22 billion in 2024.

The average InsurTech deal size also grew 14.6%, from $12.8 million to $14.67 million.

Mega-round funding remained relatively stable, dropping slightly from $969 million in 2023 to $930 million in 2024.

Geographically, the UK strengthened its position as the world’s second-largest InsurTech market. UK-based InsurTechs accounted for 9.3% of all deals in 2024, an increase of nearly two percentage points from 2023—the largest gain among all countries.

Additionally, AI-centered InsurTechs accounted for 34.6% of deals in 2024. Half of the top 10 InsurTechs by funding round were AI-centered. These companies raised $2.01 billion across 119 deals in 2024, commanding higher average deal sizes of $18.93 million, compared to $12.21 million for non-AI InsurTechs.

Andrew Johnston, Global Head of InsurTech at Gallagher Re, said, “We began 2024 with the observation that 2023 had been the year that Al was first widely taken seriously in our industry. This year has continued the trajectory of acceptance, with pilots, proofs of concept, use cases, technological development and most importantly, a further bedding-in of Al being used in real life scenarios. We observed that, on average, ‘Al-enabled’ InsurTechs raised an additional $5 million when compared with their non-Al cousins.”

See below for annual insurtech funding since 2012, provided by Gallagher Re.

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