Global insurtech funding slips as L&H deals plunge

Insurtech Funding Faces Challenges

Recent data indicates that the global insurtech funding landscape is experiencing notable changes. Overall, investment funding has dropped, with a specific decline in life and health (L&H) sector deals.

Current Funding Landscape

According to an analysis by Gallagher Re, the number of insurtech deals has seen a significant reduction this quarter. Investors appear to be more selective, which may be creating barriers for new startups looking to enter the market.

While the overall number of deals is decreasing, there is an interesting trend where the average size of these deals is actually increasing. This suggests that while investors are being cautious, they are still willing to commit larger amounts to fewer opportunities.

Impact on the Industry

This shift could lead to a more concentrated market, as only the most promising ventures secure funding. For startups and smaller companies, this might mean tighter competition for limited resources. For established entities, it may provide an opportunity to consolidate their market position.

The decline in L&H deals specifically raises questions about the future of innovation in these sectors, which have been crucial in addressing emerging challenges in health insurance and life coverage.

Conclusion

In summary, while the insurtech space is witnessing fewer but larger deals, the implications of this trend could be profound for various players in the industry. Stakeholders should be mindful of these changes as they strategize for the future.

Original Source: https://www.insurancebusinessmag.com/reinsurance/news/breaking-news/global-insurtech-funding-slips-as-landh-deals-plunge--gallagher-re-555669.aspx