Global funding for insurtech is on track to reach an impressive $4.2 billion by the end of 2024, according to the latest report titled “The State of Global Insurtech,” released by Dealroom.co, Mundi Ventures, and MAPFRE. This marks a significant rebound for the sector, with $3.2 billion already invested in the first three quarters of the year.
As the insurtech landscape stabilizes following years of uncertainty, the fourth quarter is expected to see a surge in Series B and C funding rounds, particularly for breakout-stage startups that are nearing pre-pandemic funding levels. Javier Santiso, CEO of Mundi Ventures, remarked, “After the uncertainty of previous years, the global insurtech market is now showing signs of further stabilization. While the frenzy has cooled, we are seeing a positive rebound in early-growth stages.”
However, late-stage startups are facing considerable challenges as investments in Series D and later rounds have sharply declined. This trend reflects investor caution towards high-valuation companies that are struggling to maintain growth momentum. Many of these mature startups are now focusing on achieving profitable unit economics in preparation for potential initial public offerings (IPOs) in the coming years.
Regionally, the United States leads insurtech investment with $1.8 billion so far in 2024, followed by Europe at $1.1 billion. In contrast, emerging markets like Latin America and Africa lag behind, attracting only $37.1 million and $32.4 million respectively. Despite these low figures, experts see significant growth potential in these regions due to a narrowing insurance gap.
Leire Jiménez, Chief Innovation Officer at MAPFRE, noted that “the Latin American ecosystem is resilient,” with entrepreneurs actively seeking innovative models to revitalize the sector. This optimism is bolstered by a growing recognition of opportunities within the market.
The report highlights that business-to-business software-as-a-service (B2B SaaS) providers are capturing a substantial share of insurtech funding—43% in 2024—focusing on solutions for underwriting, claims management, and risk assessment. Yoram Wijngaarde, founder and CEO of Dealroom.co, emphasized that “insurtech 2.0 is unbundling the challenge,” targeting specific niches such as climate risk and cyber insurance.
As we approach the end of 2024, all eyes will be on how these trends evolve and what they mean for the future of insurtech investment.
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