Key United States InsurTech investment stats for 2024:
- US InsurTech deal activity dropped by 42% YoY
- Californian companies secured over 25% of all US deals as it cemented its places as the InsurTech hub in the US
- Sedgwick, a global leader in claims management, secured the largest US InsurTech deal in 2024 with a funding round of $1bn
US InsurTech deal activity dropped by 42% YoY
The US InsurTech market faced a notable contraction in 2024 compared to 2023, continuing the broader downward trend in funding and deal activity.
InsurTech companies raised $2.76bn in 2024, a sharp 31% decline from the $4.02bn recorded in 2023 and a 56% drop from the $6.28bn raised in 2020.
Deal activity similarly decreased, with only 137 deals completed in 2024, down 42% from the 235 deals recorded in 2023 and 63% lower than the 370 deals in 2020.
These declines underscore the persistent challenges facing the InsurTech sector, as investor interest continues to weaken, and companies struggle to maintain momentum in an increasingly competitive landscape.
Californian companies secured over 25% of all US deals as it cemented its places as the InsurTech hub in US
California retained its position as the leading state in US InsurTech deal activity, completing 36 deals (26% share) in 2024, representing a 42% decrease from the 62 deals recorded in 2023.
New York ranked second with 24 deals (18% share), a 54% drop from the 52 deals completed in 2023.
Texas emerged as the third most active state, recording nine deals (7% share) in 2024, replacing Florida, which held the third position in 2023 with 18 deals.
While California and New York maintained their dominance, the significant contraction in deal activity across all key states reflects the broader slowdown in the sector and highlights the challenges faced by InsurTech companies nationwide.
Sedgwick, a global leader in claims management, secured the largest US InsurTech deal in 2024 with a funding round of $1bn
The strategic $1bn equity commitment was from Altas Partners.
This investment, part of a transaction valuing Sedgwick at approximately $13.2bn, brings in Altas alongside current major investors such as Carlyle and Stone Point Capital, reinforcing Sedgwick’s growth trajectory.
Known for its innovative claims-handling platform and expansive service offerings, Sedgwick manages millions of claims across casualty, property, marine, and benefits sectors annually.
The partnership with Altas is poised to bolster Sedgwick’s international expansion, technological advancements, and operational resilience, reinforcing its position as a pioneering force in the InsurTech landscape.
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