Gallagher Re Reports Insurtech Funding Dropped 43.7% in 2023

Despite lower deal counts and funding, consistent transactions indicate a mature & healthy market, says Andrew Johnston, Head of InsurTech, Gallagher Re

Global brokerage, risk management and consulting services firm Gallagher was established in 1927 and is one of the largest insurance brokers in the world. Headquartered in Illinois, the firm is home to Gallagher Re, the reinsurance arm of Gallagher operating across the risk and capital spectrum with a team of more than 2,600 in more than 30 countries. Prioritising client advocacy above all else, Gallagher Re offers clients a powerful combination of global and specialist expertise and geographic reach, using world-class analytics capabilities with reinsurance expertise, strategic advisory services and transactional excellence, to help clients drive greater value from their businesses, negotiate optimum terms and make better reinsurance decisions.

Gallagher Re’s Global InsurTech Report finds that insurtech funding dropped 43.7% from US$8bn in 2022 to US$4.5bn in 2023. This puts 2023 at the lowest since 2018, with the slump in funding driven by a year-on-year decrease in funding in both Property & Casualty (P&C), which fell 35.4% to US$3.4bn, and Life & Health (L&H) which dropped 59.8% to US$1.1bn. 

A new phase for the insurance industry

The drop in funding is also reflected in a decline in deals year on year from 521 in 2022 to 422 in 2023, and average deal since from US$18.6m in 2022 to US$13m in 2023. Despite the year on year decreasing, the funding numbers within 2023 slowly increased, from US$1.098bn in Q3’23 to US$1.103bn in Q4’23.

“Despite lower deal counts and funding, transactions were consistent and continued throughout 2023, indicating a mature and healthy market,” says Andrew Johnston, Global Head of InsurTech at Gallagher Re. 

“Whereas 2021 was the peak of the market, and described as the first phase of the InsurTech investment or the ‘Great Experiment’, 2023 could be viewed as the beginning of a new phase involving a sustained change in investor behaviour. Will check sizes be smaller but not less frequent? Will mega-rounds become less common? Will the overall flow of deal activity continue? Time will tell, and we may one day reflect that 2023 was an overcorrection, and potentially itself an anomaly.” 

Johnston joined Gallagher Re in 2021, having previously spent five years at Willis Towers Watson, as well as time in research and consultancy at SOAS and the United Nations. He holds a PhD in Politics and a Masters in Pacific Asian Studies from the University of London’s School of Oriental and African Studies.

“As we have noted in the past – innovation is not what actually drives change, it is the community coming out and accepting the innovation that ultimately makes the impact,” Johnston said. “Once the value of a new technology is finally realised, its distribution, utilisation and scaling can move extremely quickly. It is this second part of the equation that can bring our expectations full circle – back into line with the enthusiasm of a technology’s early advocates.”


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