Overall insurtech funding fell 34.3% from the first quarter of 2023, according to a Thursday report from Gallagher Re, the reinsurance business of Arthur J. Gallagher & , $912.3 million, meaning more than a quarter of insurtech deals in the first quarter involved AI-centric businesses.Co., Ltd.
The AI-focused insurtech raised $316.1 million, accounting for 28% of total funding in the first quarter. This includes the quarter's largest deal, a $73 million Series B commitment by HyperExponential, a machine learning-powered pricing platform, the report said.
Distribution dominated the funding, with 54 of the 107 insurtech deals in the first quarter going to “distribution-focused” insurtechs, raising a total of $528.2 million.
P&C SureTech funding in the first quarter was $605.6 million, down 22.45% sequentially. This was due to the average P&C SureTech deal size decreasing to $10.1 million and the number of P&C SureTech deals down 6 quarter-over-quarter to 70. .
According to data in the report, the US continues to dominate in fundraising, winning 51% of deals in the first quarter, with the UK a distant second with 9% of deals.
Andrew Johnston, global head of insurtech at Gallagher Re, said artificial intelligence has huge potential for the insurance industry. “I truly believe that this technology will add tremendous value to the industry,” he said.
