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Insurtech funding decreases 24.9% in Q3: Gallagher Re


Third-quarter 2022 insurtech funding totaled $2.35 billion, off 24.9% from third-quarter 2021 and 2.5% sequentially from second-quarter 2022, according to a report Tuesday from Gallagher Re, the reinsurance business unit of Arthur J. Gallagher & Co.

The average deal size for the third quarter also decreased sequentially, off 7.6% to $20.42 million from second-quarter 2022.

Despite the decrease in overall global funding, deal count grew quarter on quarter to 140 from 132 in second-quarter 2022.

Insurers and reinsurers have stepped up their participation, with 24 corporate deals in the third quarter, bringing the year’s total to 85 corporate investments. There were 96 such deals in 2020 and 107 in 2021, so 2022 could end up being a record year if this pace continues, the report said.

Almost half of all third-quarter funding, 44%, went to the United States, with India a distant second at 7% and Germany third at 6%. No other single nation had a greater than 4% share, and one measure labeled “other” accounted for 22% of funding, according to Gallagher Re data.

In the property/casualty sector, distribution accounted for 53% of deals, business to business 44%, and carrier deals at 5%, largely in line with averages of 51%, 44% and 5%, respectively, since 2012.

One of the larger funding rounds of the third quarter saw Coalition Inc., founded in 2017 and based in San Francisco, raise $250 million from investors including Allianz X GmbH. Coalition provides small and medium businesses with insurance coverage and cybersecurity tools helping to identify risks, and prevent attacks and losses.