Common deal measurement throughout 106 rounds fell 42.3% to $11.79 million, the report discovered. Complete funding for 2022 was down by 49.5% from the prior yr, to $7.98 billion. Insurtechs additionally attracted $6.51 billion much less in mega-round funding in 2022 – a year-over-year decline of 66.7%.
Early-stage funding fell 25.1% quarter over quarter to $408.27 million in This fall, pushed by a 51.3% decline in early-stage P&C funding over 50 transactions averaging $4.63 million, Gallagher Re stated. Early-stage L&H funding, nonetheless, elevated by 46.5% to $213.64 million in This fall, pushed by 4 offers exceeding $40 million.
Finish of the ‘disruption’ narrative
“On the finish of 2019, we estimated the full variety of insurtech companies globally at 3,000, however now solely about 2,050 are actively open for enterprise,” stated Dr. Andrew Johnston, international head of insurtech at Gallagher Re. “In the meantime, enterprise capitalists are centered on profitability and well-understood KPIs. capital is out there, however funding dropped dramatically in 2022 from 2021, with 2021 arguably marking the height of expectations. Probably the most vital characteristic of 2022 is that the narrative round ‘disruption’ appears to be really over.”
Learn extra: Revealed – insurers’ tech priorities for 2023
Johnston stated {that a} small variety of particular person companies – all of which deal with the business as a group – did remarkably effectively in 2022.
“2022 has prompted an exodus of third-party capital suppliers, inflicting the sector to refocus on the true prize: wider adoption of acceptable expertise to make your complete technique of insurance coverage extra environment friendly, cost-effective, and fewer complicated, resulting in an improved buyer expertise,” he stated.
Funding frontrunners
Gallagher Re’s This fall International InsurTech Report additionally compiled an inventory of 2022’s insurtech funding frontrunners. Main with the best variety of particular person offers was Y Combinator, which accomplished 17 rounds. Second place was shared by Gaingels and Anthemis, which every accomplished 12 offers. Plug and Play Ventures took third with 10 offers.
Greycroft topped the listing for complete funding worth, investing $699 million over 9 transactions in 2022. OMERS Ventures was second with $592 million, together with a share of This fall’s solely mega-round, for Clearcover. Allianz X took third with $565 million throughout three offers.
The highest recipient nations for insurtech funding in 2022 have been the US, the UK, Germany, France, India, Israel and Australia, all of which topped $200 million, Gallagher Re reported. At $4 billion, US firms obtained 35% extra funding than the subsequent six nations mixed.
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