Insurance technology funding from venture capitalists is projected to close at US$4.2 billion by the end of the year, according to “The State of Global Insurtech” report by Dealroom.co, Mundi Ventures, and MAPFRE.
In the first nine months, global insurtech investment already amounted to $3.2 billion, with the fourth quarter expected to see mostly Series B and C funding rounds for breakout-stage startups. These firms are said to be approaching pre-pandemic funding peaks.
“After the uncertainty of previous years, the global insurtech market is now showing signs of further stabilisation,” said Javier Santiso, chief executive and general manager of Mundi Ventures. “While the frenzy has cooled, we are seeing a positive rebound in early-growth/breakout stages, particularly with Series B funding picking up.”
However, late-stage startups are facing significant funding challenges, with large-scale investments into Series D and later rounds seeing steep declines. The setbacks highlight investor caution around high-valuation, mature companies struggling to maintain momentum.
Meanwhile some late-stage ventures are refocusing on profitable unit economics to position themselves for potential initial public offerings in the next few years.
Regionally, the US leads insurtech investment with US$1.8 billion so far this year, followed by Europe at US$1.1 billion. In contrast, emerging markets like Latin America and Africa continue to lag behind with US$37.1 million and US$32.4 million, respectively. Although funding in these regions remains limited, experts see growth potential due to a narrowing insurance gap.
“The Latin American ecosystem is resilient, and entrepreneurs continue to seek new formulas, models, and businesses to revitalise the sector,” noted Leire Jiménez, chief innovation officer at MAPFRE. “The region has great potential, more so at a time when the insurance gap is gradually shrinking due to the large volume of opportunities in it.”
According to the report, business-to-business software-as-a-service (B2B SaaS) providers are seizing a significant share of insurtech funding, capturing 43% of total investments in 2024. This category includes solutions for underwriting, claims management, risk assessment, and administrative efficiency.
Yoram Wijngaarde, founder and CEO of Dealroom.co, commented: “Insurance is a vast industry that has been largely unchanged for hundreds of years. It remains a huge target for tech efficiency and scale, but one that has been difficult to crack.
“Insurtech 2.0 is unbundling the challenge, zeroing in on niches like B2B SaaS, risk management, climate and cyber, with greater traction. Global breakout-stage investment is on track to grow year on year in 2024, and European insurtech VC has already passed 2023’s total. Insurtech is iterating.”
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