AI Dominates Insurtech Funding Push

According to Gallagher Re’s global update, eight out of the 10 largest third – quarter insurtech funding rounds centered on AI. The average deal size for AI – driven insurtechs was $US34.9 million ($54.10 million). These attracted 29 deals and accounted for 63% of the $US1.38 billion ($2.08 billion) raised during the quarter. Andrew Johnston, Gallagher Re’s global head of insurtech, said funding is “very vibrant and our industry continues to be very willing to support technological innovation”. He also noted that the most recent quarter was “fascinating”, with activity defying certain trends, especially the reduction in mega – round deals.

Mega – round deals over $US100 million ($150.54 million) still attracted 56% of the funding. However, the number of insurtech deals in the quarter was 77, the lowest in nearly four years and down from 82 in the previous corresponding quarter. Early – stage deals dropped to 38 from 50, as most insurance company tech investment focused on mid – stage rounds.

In Australia, Kismet Healthcare raised $US32.2 million ($48.47 million) in September from MassMutual Ventures. Its Melbourne – based platform connects people with verified service providers for various needs. In the third quarter, brokerage EBM Insurance & Risk partnered with CyberCube, and QBE Ventures participated in a $US28.5 million ($42.9 million) funding round for US – based Demex, which manages non – catastrophic weather risk. Zurich led a $US60 million ($90.32 million) funding round for Cowbell in July, and in September, Zurich Resilience Solutions partnered with TechAssure, providing members with access to cyber resilience and risk transfer services.

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