According to "Global Insurtech Report" from Gallagher Re, total insurtech funding rose to $1.39 billion in Q1 2023 - Up 37.6% from Q4 2022.

Global Insurtech Funding Rises to $1.39B in Q1 [Gallagher Re]

May 12, 2023

Published in INSURTECH
on dig-in.com
by Kaitlyn Mattson

Total insurtech funding during the first quarter rose to $1.39 billion from $1.01 billion in Q4, 2022, up 37.6%, according to the Global Insurtech Report from Gallagher Re, a reinsurance broker.

Funding for property and casualty and life and health insurtechs drove the increased investment in the sector. Mega-rounds counted for only about 13% of total deals and the average early-stage deal was up 28%. The majority of reinsurer investments went to early-stage rounds, which has been noted for the last six quarterly reports.

2021 undoubtedly marked the funding peak, fuelled by Covid-19 uncertainty and an organically occurring crescendo. The sector came back down to earth in 2022, leading to some serious restructures, cost-saving actions, and new business strategies. A lot of companies did not make it through. Founders are now thinking about long-term sustainability and growth, and realizing their businesses will need to pull the plough themselves, reliant on their own capabilities and revenues. A significant upside seems to be the genuine willingness of many (re)insurers, brokers, and agents to adopt technology. The pressure is therefore on insurtechs to make their businesses palatable and value-adding.
Dr. Andrew Johnston, Global Head of Insurtech, Gallagher Re

Gallagher plans to release additional reports throughout the year. This report focuses on the funding activity captured in and around angel, convertible note, pre-seed, seed and seed venture capital deals. The Q2 edition will focus on deals in and around Series A. Following that, Q3 will focus on deals at the Series B and C level and finally Q4 will focus its attention on those Series D, Series E+, growth equity, private equity, exits and corporate majority deals.

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