Global insurtech investment in the fourth quarter of 2022 fell 57% quarter-over-quarter to $1.01 billion, its lowest quarterly level since first-quarter 2020, according to the Global InsurTech Report on Thursday from Gallagher Re, the reinsurance brokerage business of Arthur J. Gallagher & Co.

Fourth-quarter funding in property/casualty slumped 64.4%, to $630.16 million, and investments in life and health fell 33.7% to $383.76 million, Gallagher Re said.

The sector has also seen its numbers and staffing decline, according to Gallagher Re, which estimated that at the end of 2019, there were nearly 3,000 global insurtech businesses. “We estimate that currently there are 2,050 businesses that are actively open for business,” the report said, a dropoff of roughly a third.

Similarly, “staff layoffs have been profoundly visible. In some extreme cases, insurtech companies have laid off up to 40% of their working headcount, which for larger insurtech companies can translate into 300 to 500 people in one swoop,” the report said.

The U.S. saw the lion’s share of funding, 49%, followed by the U.K. with 8% and China with 6%. No other nation saw more than 4% of quarterly insurtech funding, according to Gallagher Re data.

For the full-year 2022, the top seven recipient countries for insurtech investment were the U.S., U.K., Germany, France, India, Israel and Australia, all of which topped $200 million.  U.S. companies, however, with $4 billion in financing, received 35% more investment than the next six countries combined, Gallagher Re said in a statement with the report.

In the property/casualty segment, 55% of funding went toward distribution, 42% to business-to-business, and just 3% to insurers, according to Gallagher Re data.

Qualitatively, the report suggested a continuing evolution toward collaboration and away from the pure “disruption” rhetoric of recent years. “What is possibly the most significant feature of 2022 is that the narrative around ‘disruption’ seems to be truly over.”