Insurtech Investment Tumbled in 2022

Overall insurtech funding plummeted during the last quarter of 2022 with a 57.0% decrease in funding according to Gallagher Re’s most recent Insurtech Quarterly report. The report, entitled “Gallagher RE Global Insurtech Report, February 2023,,” is a quarterly collaboration between Gallagher Re and CB Insights, a market intelligence platform that conducts a comprehensive analysis of the insurtech sphere using data, analysis, and insights.

“The narrative of disruption seems to be truly over”

One of the major themes that emerges from the current report, however, is the realization that era of the idea around”insurtech disruption” has most likely ended. As the author Dr. Johnston writes in the report:

“What is possibly the most significant feature of 2022 (as we review the ‘key events’ of each year leading up until this point) is that the narrative around ‘disruption’ seems to be truly over.”

Later on, he argues that perhaps it would be best to retire the entire notion of “insurtech” as a separate movement from the industry-wide adoption of “insurance technology.”

“For some, any insurance practice yoking technology warrants the use of the label ‘InsurTech’, for others it refers specifically to the cultural phenomena of outside forces looking to disrupt our industry under the guise of being technologically enabled (as its sole competitive advantage). If both facets here are true then we have an issue when trying to be precise with what we mean when we say InsurTech – given that the issue of ‘disruption’ is now being put to bed, is ‘InsurTech’ any different to ‘Insurance technology’, which has been around for decades? For us to be able to speak intelligently about the incredible role that technology has, and will continue to have in our industry, perhaps we should think about retiring the term ‘InsurTech’ and be far more precise in our language..”

Other key Insurtech funding findings

Contents of Gallagher Re Insurtech report

In addition to Dr. Johnston’s thoughts about the maturation of “insurtech”, the report also highlighted the following key statistics with respect to insurtech investments in 2022:

Quarterly insurtech funding decreased 57.0% from $2.35 billion in Q3 to $1.01 billion in Q4.
2022 was the first year to see an overall decrease in insurtech investment since 2016.
Annual funding for insurtech halved between 2021 and 2022, decreasing 49.5% from $15.80 billion in 2021 to $7.98 billion in 2022.
The number of funding deals dropped to 106, the lowest since Q4-2020.

Other insurtech aspects covered in the 88-page report

Chock-full of valuable information for those interested in the insurtech industry and investment sphere, the report also chronicles the leading investors, entrepreneurs, and industry professionals. It also gives a good overview of the current state of the insurtech industry, highlights key trends and developments from the past year and a review of the investment landscape.

In addition, the report looks at the current state of insurtech companies and profiles some of the most innovative and successful insurtech businesses including:

Cowbell: Offers adaptive cyber insurance to organizations of all sizes powered by technology, data, and AI.
Emmi: Helps companies integrate carbon value into financial portfolios and assesses carbon performance through its carbon intelligence suite and global carbon efficiency rating solution.
Raincoat: Provides parametric insurance that offers immediate payout following a climate disaster.
Bolttech: An international insurtech company established in 2020 with the goal of building a leading technology-powered ecosystem for protection and insurance. Its core business is a technology-enabled insurance exchange that quotes over $52 billion in premiums annually. Bolttech works with over 800 distribution partners and 200 insurers across 30 markets.
Altelium: Offers insurance, warranties, and data analytics for batteries and battery-related products.
Yokahu: A parametric insurtech startup providing affordable extreme weather insurance and rapid disaster relief finance to vulnerable communities.
Ed Messer and Steve Bowen of Gallagher Re: Share their views on the position of climate, science, and ESG in the insurance industry.
Alexander Choniski of Gallagher Re: Shares his thoughts on embedded insurance and introduces Gallagher Re’s latest offering: “Emmersa.”

The report concludes with a look at the future, offering insights and predictions on what the industry can expect in the coming years. This report is a must-read for anyone interested in the insurtech industry and its continued evolution. The eighty-eight-page report ends with a comprehensive data analysis of the state of Insurtech funding in Quarter 4 of 2022,

26 pages of current data on Insurtech funding with company descriptions

Finally, one of the most interesting and valuable sections of the report is the last section covering fourth-quarter 2022 Insurance funding transactions.

This section of the report contains 13 pages of Property & Casualty funding, seven pages of life & health Insurtech funding, and six pages of private technology investments by reinsurers.

The data provided included the Insurtech company-funded, the total funding, the investors, and a summary description of the company-funded’s business model. These business model descriptions showed the innovation Insurtechs, seeking to gain market traction, bring to the insurance space.