The newly released State of Global Insurtech report from Dealroom.co, Mundi Ventures, and MAPFRE reveal that global insurtech funding is on track to close the year at a projected $4.2 billion, maintaining levels consistent with previous years. With $3.2 billion already invested by the end of Q3, the sector is positioned for a solid year-end. Now in its fourth edition, this annual report provides insights into trends, geographic investment patterns, and key areas of innovation shaping the global insurtech landscape.
The report highlights that Series B and C companies are currently driving this year’s funding momentum as they near 2018 and 2023 levels. Early-stage companies (from pre-seed through Series A) are also contributing to the sector’s robust performance. “After the uncertainty of previous years, the global insurtech market is now showing signs of further stabilization. While the frenzy has cooled, weʼre seeing a positive rebound in the early-growth / breakout stages, particularly with Series B funding picking up. However, the late-stage market remains significantly constrained, with a freeze in growth and IPO phases. Many startups are now gearing up for potential IPOs in 2025 or 2026, setting profitable models and waiting for more favorable market conditions. This cautious environment is shifting investor focus towards proven business models with solid unit economics.” says Javier Santiso, CEO and General Partner of Mundi Ventures.
Regionally, the United States and Europe continue to lead in insurtech investment, totaling $1.7 billion and $1 billion, respectively. These regions show positive momentum, while emerging markets, including Latin America and Africa, are also attracting increased attention. “What we are seeing worldwide is a slowdown in the economy since 2022, which is directly impacting investment in insurtech venture capital, some geographies more than others. US and Europe, for example, are back on track and showing an optimistic performance.However, Asia and Latin America are struggling to raise, the latter with funding at historic lows. Still, the Latin American ecosystem is resilient, and entrepreneurs continue to seek new formulas, models, and businesses to revitalize the sector. 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. Collaborative spaces and public-private partnerships are key to stabilize the market and drive it forward” notes Leire Jiménez, Chief Innovation Officer at MAPFRE.
The report also reveals that B2B Software as a Service (SaaS) startups accounted for 43% of total insurtech funding so far in 2024. These companies focused on delivering solutions for payments, risk management, underwriting, and claims, are leveraging artificial intelligence to drive operational efficiency and expand their portfolios.
Also, the year’s investments are evenly split between the life and health (L&H) and property and casualty (P&C) segments, each capturing 50% of funding. In L&H, the health sector remains a focal point, while P&C investments are centered on climate risks and business insurance. Key trends in 2024 include generative AI, climate risk technology, and health innovations that enhance predictive capabilities, efficiency, and risk management.
These and more insights can be found in The State of Global Insurtech report that underscores the resilience and adaptability of the insurtech sector, which continues to attract more funding and foster innovation across various markets and technologies.
Read the full report here: The State of Global Insurtech 2024
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