Global insurtech investment jumps 19.8%: Gallagher Re

Global insurtech investment increased 19.8% in the third quarter over the second quarter, according to the Global InsurTech Report issued Thursday by Gallagher Re, the reinsurance brokerage business of Arthur J. Gallagher & Co.

The report said the increase was attributable to property/casualty insurtech, where funding for the quarter increased 25.5% to $931.32 million from the second quarter. Deals in the life and health sector dropped 4.5%, to $166.6 million.

The number of deals increased to 119 for the quarter, compared with 97 in the second quarter, with property/casualty insurtech accounting for 90 of the third quarter’s total.

The average deal size in the third quarter, however, fell 16.4%, to $12.39 million from the second quarter, a six-year low, said the report, noting that 2017’s third quarter was the last quarter where there were lower average insurtech deal sizes.