Insurtech funding for the third quarter of 2022 was $2.35 billion, up 24.9% from the third quarter of 2021 and 2.5% sequentially from the second quarter of 2022, according to a report on Tuesday from Gallagher Re, Arthur J. Gallagher & Co’s reinsurance business.
The average deal size for the third quarter also decreased sequentially, by 7.6% to $20.42 million from the second quarter of 2022.
Despite the decline in total global funding, the number of deals increased quarter-on-quarter to 140 from 132 in the second quarter of 2022.
Insurers and reinsurers have increased 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 be a record year if this pace continues, the report said.
Almost half of all funding in the third quarter, 44%, went to the US, with India a distant second at 7% and Germany third at 6%. No other single nation had a share of more than 4%, and a measure labeled “other” accounted for 22% of funding, according to data from Gallagher Re.
In the property/casualty sector, distribution accounted for 53% of business, business to business 44% and carrier business 5%, broadly in line with averages of 51%, 44% and 5% respectively since 2012.
One of the larger funding rounds in 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 SMBs with insurance coverage and cybersecurity tools that help identify risks and prevent attacks and losses.