According to the latest Global InsurTech Report from Gallagher Re, new funding for the insurtech sector decreased to $916.71 million in the second quarter of 2023.
This represents a decline of 34% from the previous quarter’s total of $1.39 billion. Notably, this is the first time in three years that the quarterly total has fallen below the $1 billion mark.
Although there was a significant decrease in the overall funding, the average deal size only declined by 16.1% to $12.39 million in Q2, the report stated. This decrease in average deal size can be attributed to the smaller number of investments, with only 97 reported for the quarter.