The third quarter of 2024 concluded with $3.2 billion in investments, a decrease of 7% compared to the same period in 2023. However, this decline is seen as a temporary setback, with a positive trend indicating a potential rebound in the final quarter.
The recovery in funding is primarily driven by breakout-stage companies (Series B and C), which are nearing pre-pandemic levels of investment. Meanwhile, early-stage startups (pre-seed, seed, and Series A) are also contributing to this stabilisation, although they face a 50% decline compared to their 2021 peaks. In contrast, late-stage startups are struggling, with funding down nearly 90% from their 2021 heights, reflecting a broader market caution regarding mature, high-valuation companies.
Regionally, the United States continues to lead investment in insurtech, attracting $1.8 billion, followed by Europe with $1.1 billion. This creates a stark contrast with emerging markets like Africa and Latin America, which saw funding of just $32.4 million and $37.1 million, respectively.
A significant portion of insurtech funding—43%—is captured by B2B Software as a Service (SaaS) startups, including those offering payment solutions, risk management, and underwriting software. Many of these companies are leveraging artificial intelligence (AI) to enhance their product offerings.
The report, titled “The State of Global Insurtech,” produced by Dealroom.co, Mundi Ventures, and MAPFRE, highlights that while early-stage and late-stage startups remain below their peak funding levels, breakout-stage companies are leading the way to recovery. The life and health segment has garnered equal attention as the property and casualty segment, driven by trends in healthcare and climate risks.
Industry leaders like Javier Santiso, CEO of Mundi Ventures, and Leire Jiménez, Chief Innovation Officer at MAPFRE, acknowledge the mixed landscape of the insurtech sector, emphasising the need for resilience and innovation to navigate the current economic challenges. As investor focus shifts towards solid business models, the insurtech industry is positioned for a cautious yet hopeful future.
Join Mapfre Leaders at Insurtech Insights Europe 2025 in London
Join Leire Jimenez, Group Chief Innovation Officer, Mapfre at Insurtech Insights Europe 2025 on March 19 to 20th at The O2 Intercontinental, London. Jimenez is confirmed to offer valuable insights at the event. For more information, visit here: ITI Europe 2025
