Author: Andrew Johnston MA, Ph.D
Moving through this crucial inflection point of global InsurTech, from phase one the ‘great experiment’, into phase two sustainable, profitable business outcomes, we now see in the third quarter of 2023 some thought-provoking examples of what this change looks like, for both InsurTechs and investors.
Key Findings for Q3 2023
- Global InsurTech funding increased 19.8% quarter on quarter, from $916.71 million in Q2’23 to $1.098 billion in Q3’23.
- Early-stage InsurTech funding increased 24.7% quarter on quarter, from $216.05 million to $269.45 million.
- Q3’23 saw average InsurTech deal sizes dip to a six-year low.
- Deal share for US-based InsurTechs at the highest level since Q1’20.
- 15.1% of all Q3’23 InsurTech deals were in the mid-stage expansion category, which is less than long-term InsurTech trends.
- The majority of tech investments from (re)insurers were early stage for the fifth consecutive quarter.