The insurtech business has witnessed a major resurgence in 2024, with funding quantity rising 44% in Q2 2024, the primary preliminary public choices (IPOs) since 2022 and a surge in deal exercise throughout Europe, new knowledge launched by market intelligence platform CB Insights present.
The “State of Insurtech Q2 2024 Report,” launched on August 06, gives an summary of the worldwide insurtech panorama, specializing in fairness funding exercise in Q2 2024. The report highlights key funding developments, geographic exercise, and exit exercise through the quarter.
In Q2 2024, world insurtech funding outpaced the expansion seen throughout the broader enterprise and fintech landscapes, rising to a exceptional US$1.3 billion. The determine represents the very best funding degree since Q1 2023, marking a five-quarter excessive.
The expansion in funding was primarily pushed by a 50% enhance in fairness funding in property and casualty (P&C) insurtech, which rose from US$600 million in Q1 2024 to US$900 million in Q2 2024. Funding to life and well being (L&H) insurtech startups additionally elevated quarter-over-quarter (QoQ), rising from US$300 million to US$400 million. Nonetheless, regardless of the rise in funding, each verticals recorded a lower within the variety of offers, with deal counts falling by 28% and 26% QoQ, respectively.
This means that deal sizes grew considerably, a pattern additional supported by a 25% enhance in median insurtech deal dimension in H1 2024 in comparison with 2023, rising from US$4 million in 2023 to US$5 million in H1 2024.
Q2 2024 additionally noticed the sector’s first IPOs since Q3 2024, with two listings. Digit Insurance coverage, an India-based insurance coverage supplier, debuted on the Nationwide Inventory Change in Could 2024, and Rasan, a Saudi Arabia-based firm focusing totally on auto insurance coverage gross sales and automobile companies, began buying and selling on the Saudi Change in the identical month.
Merger and acquisition (M&A) exercise within the insurtech sector additionally rebounded, surging 150% QoQ from six in Q1 2024 to fifteen in Q2 2024. A notable M&A transaction was the acquisition of Arya.ai, a deep studying and synthetic intelligence (AI) startup, by Aurionpro Options.
Aurionpro Options is a know-how options agency from India that serves the banking, mobility, funds, and authorities sectors. Aurionpro Options acquired a majority stake (67%) in Arya.ai by way of an all-cash deal, involving the acquisition of shares from present shareholders and the subscription of latest fairness capital in Arya.ai.
regional developments, the report exhibits that Europe’s affect within the world insurtech business is growing with the area’s share of insurtech offers reaching 35%, a document excessive.
Insurtech deal exercise within the continent additionally surged, hovering 67% QoQ to about US$500 million and reaching a seven-quarter excessive. That rise was pushed by two US$93 million offers for Iceye, a Finland-based supplier of knowledge from satellite tv for pc imagery, and Vitesse, a UK-based claims funds processor. Deal counts, in the meantime, stayed regular, growing barely from 28 in Q1 2024 to 29 in Q2 2024.
Comparatively, the US noticed insurtech deal depend fall from 61 to 40. Nonetheless, like Europe, VC funding quantity elevated within the US, surging from US$500 million in Q1 2024 to US$700 million.
Insurtech startups based mostly in Asia raised a complete of US$51 million in fairness funding in Q2 2024, down from US$100 million in Q1 2024, knowledge from CB Insights present. Notable offers secured this yr embrace Qoala, an Indonesian startup that accomplished its US$47 million Collection C funding spherical in March.
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