The insurtech industry has witnessed a significant resurgence in 2024, with funding volume rising 44% in Q2 2024, the first initial public offerings (IPOs) since 2022 and a surge in deal activity across Europe, new data released by market intelligence platform CB Insights show.
The “State of Insurtech Q2 2024 Report,” released on August 06, offers an overview of the global insurtech landscape, focusing on equity funding activity in Q2 2024. The report highlights key investment trends, geographic activity, and exit activity during the quarter.
In Q2 2024, global insurtech funding outpaced the growth seen across the broader venture and fintech landscapes, rising to a remarkable US$1.3 billion. The figure represents the highest funding level since Q1 2023, marking a five-quarter high.
The growth in funding was primarily driven by a 50% increase in equity 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 health (L&H) insurtech startups also increased quarter-over-quarter (QoQ), rising from US$300 million to US$400 million. However, despite the rise in funding, both verticals recorded a decrease in the number of deals, with deal counts falling by 28% and 26% QoQ, respectively.
This indicates that deal sizes grew significantly, a trend further supported by a 25% increase in median insurtech deal size in H1 2024 compared to 2023, rising from US$4 million in 2023 to US$5 million in H1 2024.
Q2 2024 also saw the sector’s first IPOs since Q3 2024, with two listings. Digit Insurance, an India-based insurance provider, debuted on the National Stock Exchange in May 2024, and Rasan, a Saudi Arabia-based company focusing primarily on auto insurance sales and vehicle services, started trading on the Saudi Exchange in the same month.
Merger and acquisition (M&A) activity in the insurtech sector also rebounded, surging 150% QoQ from six in Q1 2024 to 15 in Q2 2024. A notable M&A transaction was the acquisition of Arya.ai, a deep learning and artificial intelligence (AI) startup, by Aurionpro Solutions.
Aurionpro Solutions is a technology solutions firm from India that serves the banking, mobility, payments, and government sectors. Aurionpro Solutions acquired a majority stake (67%) in Arya.ai through an all-cash deal, involving the purchase of shares from existing shareholders and the subscription of new equity capital in Arya.ai.
Looking at regional trends, the report shows that Europe’s influence in the global insurtech industry is increasing with the region’s share of insurtech deals reaching 35%, a record high.
Insurtech deal activity in the continent also surged, soaring 67% QoQ to about US$500 million and reaching a seven-quarter high. That rise was driven by two US$93 million deals for Iceye, a Finland-based provider of data from satellite imagery, and Vitesse, a UK-based claims payments processor. Deal counts, meanwhile, stayed steady, increasing slightly from 28 in Q1 2024 to 29 in Q2 2024.
Comparatively, the US saw insurtech deal count fall from 61 to 40. However, like Europe, VC funding volume increased in the US, surging from US$500 million in Q1 2024 to US$700 million.
Insurtech startups based in Asia raised a total of US$51 million in equity funding in Q2 2024, down from US$100 million in Q1 2024, data from CB Insights show. Notable deals secured this year include Qoala, an Indonesian startup that completed its US$47 million Series C funding round in March.
Featured image: edited from freepik
