Global insurtech investment jumps 37% in Q1: Gallagher Re

Global insurtech investment increased 37% from the previous quarter to $1.39 billion in first-quarter 2023, according to the Global InsurTech Report released Thursday by Gallagher Re, the reinsurance brokerage business of Arthur J. Gallagher & Co.

Just over half, 53%, of all funding went to the U.S., followed distantly by the United Kingdom with 8%, and India with 6%. No other single nation garnered more than 3% of funding, and “other” destinations accounted cumulatively for 28%, according to data in the report.

A third of funding, 33%, went to seed or the so-called “angel” round of funding, the earliest stage. Series A took 17% of funding, while series B got 21% of funding and series C 5%. Series D and E took 2% and 4%, respectively, and “other” stages cumulatively accounted for 18%, data showed.

There were 76 transactions in the property/casualty sector, more than double the 30 deals in the life and health business. Of those 76, 47% involved business to business investments, 45% distribution, and just 8% involved insurers, data showed.

Reinsurers made 30 private technology investments in the first quarter 2023, with the U.S. once again garnering the majority, 57%. Singapore accounted for 10%, India 7%, with no other single nation garnering more than 3% and “others” totaling 11%, data showed.

The rebound in funding comes after a substantial decline in the fourth quarter of 2022.

“There is still cash available,” said Andrew Johnston, Nashville, Tennessee-based global head of insurtech at Gallagher Re. “We’re still seeing investments,” for the right types of businesses, he said.