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Insurtech Funding in 2024: Stabilization Trends, Insights & Key Drivers

    Venture capital funding in insurtech startups is stabilizing, driven by breakout-stage startups in Series B and C. Projections indicate it will reach $4.2 bn by the end of 2024, aligning with 2018 and 2023 figures. Funding reached $3.2 bn in the first three quarters, 7% lower than 2023. Despite this, positive trends suggest a rebound by year-end.

    Insurtech VC funding in 2024 is projected to be almost on par with last year. Looking back, it peaked in 2021 and then dropped over two thirds. Now we are back to 2018 levels.

    Late-stage startups (seeking over $100 mn) face the steepest decline, with nearly 90% lower funding than their 2021 peak. These startups are expected to contribute significantly to the year’s final funding push as they strengthen unit economics for future exits, according to The State of Global Insurtech Report by Dealroom, Mundi Ventures and MAPFRE. Beinsure Media has selected the most important points from the report.

    Key Highlights

    • Q3 2024 closed with $3.2 bn in insurtech investment, down 7% from 2023. Despite this, funding trends indicate a likely rebound in the fourth quarter, stabilizing at 2018 levels.
    • Breakout-stage companies (Series B and C) are driving this stabilization, nearing pre-pandemic funding levels. Early-stage startups (pre-seed, seed, and Series A) are also contributing, though late-stage startups continue to face funding challenges. These difficulties highlight market caution toward mature, high-valuation firms.
    • The U.S. remains the top growth driver, attracting $1.8 bn in investment, followed by Europe with $1.1 bn. Emerging markets like Africa and Latin America lag significantly, securing $32.4 mn and $37.1 mn, respectively.
    • B2B SaaS startups dominate, capturing 43% of total funding. These companies include providers of payment solutions, risk management tools, underwriting software, and claims administration platforms. Many are AI-focused or expanding portfolios with new AI-based offerings.

    The U.S. leads in insurtech funding, followed by Europe, with investments of $1.8 bn and $1.1 bn, respectively. Both regions maintain positive momentum (see Top 50 Global InsurTech Startup Investors).

    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.

    Javier Santiso, CEO and General Manager, Mundi Ventures

    The late-stage market remains significantly constrained, with a freeze in growth and IPO phases. Insurtech 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.

    Cumulative Insurtech VC funding

    Cumulative Insurtech VC funding by month (2019 - 2024)
    Source: Dealroom

    Early-Stage and Late-Stage Startups Struggle to Recover

    Late-stage funding scarcity remains a key challenge, but early-stage startups in pre-seed, seed, or Series A phases also show a 50% decline from their 2021 peak.

    Series B and C startups lead funding, expected to reach $2.4 bn by 2024’s close. These levels mirror pre-pandemic trends, signaling market stabilization.

    Insurtech Challengers (1.0) have adjusted to shifting tech and insurance market dynamics, addressing key industry challenges. Their stock performance has grown steadily over the past two years.

    Global VC funding in insurtech startups

    Global VC funding in insurtech startups
    Source: Dealroom

    With $3.2B raised in 2024, insurtech shows strong investor confidence, despite a 7% dip from last year, slightly underperforming the market but still outpacing fintech.

    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.

    Leire Jiménez, Chief Innovation Officer, MAPFRE

    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.

    Global VC funding by industry in 2024

    Global VC funding by industry in 2024
    Source: Dealroom

    VC funding growth by Industry, 2024

    VC funding growth by Industry, 2024
    Source: Dealroom

    Late stage is the main cause of funding decrease in insurtech. Early and breakout stage have fared better but are still down ~50% from peak.

    Early-stage is back to 2017, down 50%+ from peak

    Early-stage is back to 2017, down 50%+ from peak
    Source: Dealroom

    Breakout stage is up from last year and almost back to pre-pandemic level

    Breakout stage is up from last year and almost back to pre-pandemic level
    Source: Dealroom

    Late-stage has fallen dramatically

    Late-stage has fallen dramatically
    Source: Dealroom

    U.S. and Europe Dominate Investment

    The U.S. leads in insurtech funding, followed by Europe, with investments of $1.8 bn and $1.1 bn, respectively. Both regions maintain positive momentum.

    In contrast, emerging markets like Latin America struggle, securing $37.1 mn, a historical low. However, narrowing insurance penetration gaps and internal investment rounds signal optimism for future growth in the region.

    VC funding in insurtech by region in 2024

    VC funding in insurtech by region in 2024
    Source: Dealroom

    Share of insurtech VC funding by region

    Share of insurtech VC funding by region
    Source: Dealroom

    Challenger insurtechs have gained valuable insights from past experiences, and the market is signalling their potential to deliver significant value to the industry.

    Challenger insurtechs secured substantial early-stage funding, but in recent years, they have faced significant challenges and steep learning curves, which have driven important lessons for the broader insurtech ecosystem:

    • The “growth at all costs” strategy has proven unsuitable for the insurance industry. Insurance requires precise risk assessment and pricing, making aggressive growth difficult to sustain.
    • The rising cost of capital and interest rates have not only reduced investment in ventures but have also constrained the insurance capacity that traditional insurers and reinsurers are willing to underwrite.
    • Insurtech IPOs have underperformed compared to other industries, with investor excitement peaking in 2021. This enthusiasm led insurtechs to scale rapidly, akin to SaaS companies, resulting in the creation of unprofitable insurance books.

    B2B SaaS Startups Capture 43% of Funding

    B2B SaaS startups dominate, securing 43% of total funding—the highest on record. These include providers of software, pricing tools, risk management solutions, underwriting technology, and reinsurance systems. Many leverage AI or expand portfolios with AI-driven solutions.

    The life and health insurance segment (L&H) now matches property and casualty insurance funding at 50%, marking a three-year first. L&H growth is driven by health insurance, while P&C benefits from increased climate risk and business insurance demand.

    B2B SaaS share of insurtech VC funding

    B2B SaaS share of insurtech VC funding
    Source: Dealroom

    TOP 25 investors in global insurtech startups in Seed Rounds

    InvestorInsurtech Rounds 2023-2024Insurtech Rounds 2019-2024% Insurtech deals 2019-2024
    1Plug and Play654<25%
    2Anthemis Group34625-50%
    3Insurtech Gateway73450%+
    4500 Global124<25%
    5Global Founders Capital122<25%
    6Greenlight Reinsurance52050%+
    7Markd172050%+
    8Foundation Capital520<25%
    9Antler418<25%
    10Bpifrance518<25%
    11Clocktower Technology Ventures317<25%
    12Portage Ventures415<25%
    13SixThirty Ventures315<25%
    14BrokerTech Ventures31350%+
    15Susa Ventures013<25%
    16Core Innovation Capital213<25%
    17Seedcamp213<25%
    18Andreessen Horowitz512<25%
    19Partech112<25%
    20Fin Capital511<25%
    21Liquid 2 Ventures211<25%
    22Astorya vc31150%+
    23MetaProp310<25%
    24AV8 Ventures310<25%
    25Elaia Partners310<25%
    Source: DataWrapper by Dealroom data // See full TOP 50 Investors in InsurTech Startups in Seed Rounds

    TOP 25 investors in global insurtech startups in Series A

    InvestorInsurtech Rounds 2023-2024Insurtech Rounds 2019-2024% Insurtech deals 2019-2024
    1MS&AD Ventures53525-50%
    2MassMutual Ventures625<25%
    3Munich Re Ventures72425-50%
    4IA Capital Group52325-50%
    5MTech Capital42150%+
    6American Family Ventures42025-50%
    7Lightspeed Venture Partners420<25%
    8Greycroft Partners119<25%
    9ManchesterStory51825-50%
    10Nationwide Ventures51650%+
    11Eurazeo516<25%
    12Crosslink Capital416<25%
    13Octopus Ventures316<25%
    14Eos Venture Partners41550%+
    15QED Investors215<25%
    16CommerzVentures11525-50%
    17Khosla Ventures115<25%
    18Flourish Ventures213<25%
    19Founders Fund213<25%
    20Maverick Ventures412<25%
    21Intact Ventures31225-50%
    22Sequoia Capital212<25%
    23True Ventures211<25%
    24GreatPoint Ventures210<25%
    25AXA Venture Partners210<25%
    Source: DataWrapper by Dealroom data // See full TOP 50 VC Investors in InsurTech Startups in Series A

    TOP 25 investors in global insurtech startups in Series B

    InvestorInsurtech Rounds 2023-2024Insurtech Rounds 2019-2024% Insurtech deals 2019-2024
    1Mundi Ventures103750%+
    2Aquiline Capital Partners31625-50%
    3Brewer Lane Ventures41550%+
    4Insight Partners315<25%
    5Bessemer Venture Partners414<25%
    6SCOR21250%+
    7SoftBank012<25%
    8Cathay Innovation012<25%
    9Valor Equity Partners31050%+
    10Mubadala Capital210<25%
    11Tencent210<25%
    12Ribbit Capital110<25%
    13Viola Fintech01025-50%
    14Vertex Holdings010<25%
    15Norwest Venture Partners19<25%
    16New Enterprise Associates29<25%
    17FinTLV2950%+
    18Liberty Mutual Strategic Ventures2925-50%
    19PruVen Capital2925-50%
    20Coatue Management09<25%
    21Propel Venture Partners09<25%
    22Avanta Ventures4825-50%
    23Bain Capital Ventures28<25%
    24Menlo Ventures18<25%
    25Tiger Global08<25%
    Source: DataWrapper by Dealroom data // See full TOP 50 VC Investors in InsurTech Startups in Series B

    Share of VC funding by insurance value chain

    Key insurtech function (product and price, underwriting and claim) attracted the most of the funding in 2024 for the first time, while challengers and MGAs are at a minimum in recent years.

    • Challenger and Full-stack insurance. Challenger, full stack & MGA share of funding lowest ever in 2024.
    • Insurtech distribution and brokerage. Distribution and embedded insurance is still attracting significant funding, but less than the last three years.
    • Insurtech product and price, underwriting and claim. Key insurtech function (product and price, underwriting and claim) attracted the most funding in 2024 for the first time ever.
    • Insurtech admin tech. Admin tech platforms have attracted a few big rounds.
    Share of VC funding by insurance value chain
    Source: Dealroom

    L&H attracted 50% of VC funding in 2024, on par with P&C for the first time after three years, driven by Health insurance. Commercial insurance & Climate risk attracted the most in P&C.

    Share of VC funding P&C vs L&H

    Share of VC funding P&C vs L&H
    Source: Dealroom

    Climate Risk Intelligence & Management is on track for its second most active year ever. Most of the funding has gone to Earth Observation, Parametric Insurance, Climate Risk Financial Modeling and Weather Forecasting & Monitoring (see How Will Generative AI Change the Cyber Insurance?).

    VC funding in Climate Risk Intelligence & Management

    VC funding in Climate Risk Intelligence & Management
    Source: Dealroom

    GenAI intersects insurance in multiple ways. GenAI is starting to optimize insurance processes, but on the other hand, insurers must contribute to societal awareness and education by taking preventive measures to reduce the risks to which individuals and companies are exposed. Climate risk intelligence has received considerable and stable funding since 2021.

    Venture capital funding for generative AI startups is on track to exceed 2023’s record-breaking levels. In 2024, GenAI startups raised over $40 bn, per S&P Global Market Intelligence data, setting up the year to surpass the $22.7 bn raised in 2023.

    With chronic diseases accounting for 70-90+% of healthcare expenses in developed markets, preventive care, early intervention, and better management are gaining increased importance.

    Artificial Intelligence has been transforming the world we live in for decades. Generative AI (GenAI) promises to follow the same path, but with a much higher rate of technological development and social and business adoption.

    The role of insurance in a society embracing GenAIʼ outlines four plausible scenarios for the year 2029, each highlighting different outcomes based on GenAI’s development, regulation, and adoption. These depict extreme realities, but they are within the realms of possibility. A combination of them will determine how reality is influenced by the evolution of GenAI.

    Global Generative AI in Insurance Market size will be worth $5,5 bn by 2032 from its current size of $346.3 mn, and growing at a CAGR of 32.9% through the next decade.

    The insurance market is undergoing a remarkable transformation, thanks to the exponential growth of generative artificial intelligence (see How AI Technology Can Help Insurers).

    Insurance providers are harnessing the power of artificial intelligence to optimise their operations, improve risk assessment models, and deliver personalised customer experiences.

    Generative AI can help navigate the complex regulations of the insurance sector, build up customer data and increase efficiency in some of the industryʼs labour-intensive and time-consuming tasks.

    Example use cases:

    • Streamlining of sales & distributions with the automation of administrative tasks
    • Improvement of underwriting with the collection of data
    • Better customer experience with digital human like innovations
    • Automation of claims management

    The awareness and education of society regarding the responsible and appropriate use of Generative AI is essential in all areas. On those four scenarios, new risks will emerge, while some preexisting risks are exacerbated by the proliferation of GenAI.

    Bárbara Fernández Gutiérrez, Deputy Director (Disruptive Innovation) and Head of Insur_Space at MAPFRE


    Thus, insurers must take preventive measures to reduce the risks to which individuals and companies are exposed.

    In this context, there are some areas of opportunity to pursue for the insurance industry, from new customer relationships and more suitable products, to fraud, cyberprotection, health and mental health, or the responsible use of AI/GenAI.

    How has VC funding in the insurtech value chain evolved?

    In 2024, product and price, underwriting, and claims attracted the largest funding share for the first time. Distribution and embedded insurance remain significant but have seen declines compared to the last three years. Admin tech platforms secured a few large rounds.

    Which investors are leading in insurtech funding for 2023-2024?

    Key players include MS&AD Ventures, MassMutual Ventures, Munich Re Ventures, and Mundi Ventures. Mundi Ventures leads Series B funding globally with 10 rounds and over 50% share of insurtech deals.

    What is the share of VC funding between P&C and L&H insurance in 2024?

    Life and health (L&H) insurance captured 50% of funding in 2024, matching property and casualty (P&C) for the first time in three years. Health insurance drove L&H, while climate risks and commercial insurance dominated P&C funding.

    What are the trends in Climate Risk Intelligence & Management funding?

    This sector is on track for its second most active year, with investments focusing on Earth observation, parametric insurance, climate risk financial modeling, and weather forecasting.

    How is generative AI transforming the insurance industry?

    Generative AI (GenAI) optimizes processes such as sales, distribution, underwriting, and claims management. It also enables insurers to handle complex regulations, improve customer experiences, and automate administrative tasks. However, insurers must also address emerging risks and societal education.

    What are the primary areas of opportunity for insurers in the age of GenAI?

    Opportunities include tailored products, enhanced fraud prevention, cyber protection, mental health support, and the responsible use of AI. Insurers must also implement measures to mitigate risks associated with GenAI proliferation.

    What are the long-term projections for insurtech funding growth?

    While early-stage and late-stage funding are below their peaks, Series B and C startups are stabilizing the market. The focus on core insurance functions, climate risks, and GenAI suggests steady growth in key segments.

    …………………..

    QUOTES: Javier Santiso – CEO and General Manager, Mundi Ventures, Leire Jiménez – Chief Innovation Officer at MAPFRE & CEO MAWDY (MAPFRE Worldwide Digital Assistance), Bárbara Fernández Gutiérrez – Deputy Director (Disruptive Innovation) and Head of Insur_Space at MAPFRE

    Edited by Oleg Parashchak, Peter Sonner – Beinsure Media