Key Global InsurTech investment stats in H1 2024:
- Global InsurTech funding halved in H1 2024 YoY
- Average deal size dropped to $17.9m as investors grow cautious
- Cover Genius secured the largest InsurTech deal globally for H1 with a $80m Series E funding round
In H1 2024, the global InsurTech sector saw a steep drop in both deal activity and funding. Only 117 transactions were recorded during the first half of the year, representing a 44% decrease compared to the 209 funding rounds completed in H1 2023. Funding also experienced a dramatic drop, with InsurTech companies raising just $2.1bn in H1 2024, a 52% decline from the $4.4bn raised in H1 2023. If this trend continues, the projected total for deal activity in 2024 would be 234 deals, a notable 39% drop from the 382 transactions completed in 2023.
The average deal size in H1 2024 was approximately $17.9m, a slight decline from the $21.1m average in H1 2023, reflecting a 15% decrease. The decline could be attributed to increasing economic uncertainty and risk aversion, leading investors to be more cautious about deploying large amounts of capital within the InsurTech space.
Sydney-based Cover Genius, a leading InsurTech for embedded protection, raised the largest InsurTech deal globally for the first half of the year with a $80m Series E funding round. The funding round was led by Spark Capital with support from existing investors Dawn Capital, King River Capital, and G Squared. Despite a tech funding slowdown, this investment underscores Cover Genius’ position as a global frontrunner in InsurTech. Cover Genius, through its XCover platform, provides seamless, end-to-end insurance experiences for over 30m customers of the world’s largest digital companies. Licensed in over 60 countries and all 50 US states, the InsurTech enables partners to embed and sell multiple lines of insurance, achieving an industry-leading post-claims Net Promoter Score (NPS). The new capital will expedite Cover Genius’ growth plans, enhancing digital insurance distribution solutions, deploying AI claims handling, and expanding protection solutions on the platform. This will support new and existing partnerships, driving the creation of innovative protection products like Cancel For Any Reason (CFAR) and Delay Valet.
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