Latin American InsurTech deal activity declines 64% in 2023 as investors pull back

Key Latin American InsurTech investment stats in Q1-Q3 2023:
• Latin American InsurTech deal activity reached 25 funding rounds during the first nine months of 2023, a 64% drop from the same period last year
• Latin American InsurTech companies raised a combined $48m in Q1-Q3 2023, a 94% reduction YoY
• Mexico was the most active InsurTech country in Latin America with nine deals in Q1-Q3 2023

Latin American InsurTech has faltered in the first three quarters of 2023 with significant drops in investment levels. Q1-Q3 of 2023, the number of Latin American InsurTech deals amounted to 25, reflecting a significant 64% decrease compared to the same period in 2022. During Q1-Q3 2023, Latin American InsurTech firms collectively secured $48m in funding, marking a substantial 94% reduction YoY.

Ole Health, a digital health insurance company, had the largest Latin American InsurTech deal in Q1-Q3 2023 after raising $12m in their latest Series A funding round, led by Alma Mundi Ventures and AV8 Ventures. Olé Life currently has members in 30 countries and over 3,000 contracted advisors. In the past year, the company introduced “add-ons,” which are similar to “riders” that insurance agencies offer but that are more along the lines of lifestyle benefits, Carricarte said. One that he noted is unlike what competitors offer is “return on premium,” so, for example, if you pay $500 a year for 20 years and outlive your policy, you get all your money back, Carricarte said. In terms of growth, the company doubled its employees and has issued close to $1 billion in coverage in the past 16 months. Meanwhile, revenue in the first quarter of this year was 73% higher than the same quarter in 2022.

Mexico was the most active InsurTech country in Latin America with nine deals in Q1-Q3 2023, a 36% share of deals. Brazil was the second most active country with eight deals, a 32% share of deals. Colombia was third with three deals, a 12% share of deals.

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