Global insurtech investment rose 37% from the previous quarter to $1.39 billion in the first quarter of 2023, according to the Global InsurTech Report released Thursday by Gallagher Re, Arthur J. Gallaghers & Co.’s reinsurance broker.
Just over half, 53%, of all funding went to the US, closely followed by the UK with 8% and India with 6%. No other single nation received more than 3% of the funding, and “other” destinations cumulatively accounted for 28%, according to data in the report.
A third of the funding, 33%, went to seed or the so-called “angel” round, the earliest stage. Series A took 17% of the funding, while Series B received 21% of the funding and Series C 5%. Series D and E took 2% and 4% respectively, and “other”
; stages cumulatively accounted for 18%, the data showed.There were 76 transactions in the property/casualty sector, more than double the 30 deals in the life and health industry. Of those 76, 47% involved corporate investment, 45% distribution and just 8% involved insurance companies, the data showed.
Reinsurers made 30 private technology investments in the first quarter of 2023, with the U.S. again making up the majority at 57%. Singapore accounted for 10%, India 7%, with no other single nation gaining more than 3% and “others” for a total of 11%, the data showed.
The increase in funding comes after a significant decline in the fourth quarter of 2022.
“There’s still cash available,” said Andrew Johnston, Nashville, Tenn.-based global head of insurtech at Gallagher Re. “We’re still seeing investment,” for the right types of companies, he said.
Source link
