Insurtech funding landslides in 2023 to $4.5b

P&C and L&H both saw double-digit contractions.

Global insurance technology (insurtech) funding inched up 0.5% quarter-on-quarter in the October to December period last year to $1.1b. However, annual insurtech funding dipped tremendously in 2023.

Gallagher Re’s Global InsurTech Report for the fourth quarter of 2023 showed that 2023 fell 43.7% year-on-year (YoY) to $4.5b. To compare, 2022 saw insurtech funding reach $8.0b.

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The report attributed the slump to the slow performance recorded in property & casualty (P&C), and life & health (L&H) insurtech. P&C and L&H both dropped 35.4% YoY and 60% YoY to $3.4b and $1.1b, respectively.

Also, last year’s global insurtech deals dropped 59.8%. However, on a percentage basis, deals contracted less than funding from 521 in 2022 to 422 in 2023.