UK InsurTech funding defies global trends

UK InsurTech companies saw their funding double in 2023 compared to the previous year, defying global trends from across the sector.

UK InsurTech companies saw their funding double in 2023 compared to the previous year, defying global trends from across the sector.

In total, UK firms raised a combined $395m in 2023, a 43% increase from 2022, according to research from InsurTech Analyst.

This total was raised over 40 deals – which were primarily larger raises – as total deal activity decreased 35% year-on-year. In fact, the average deal size in the UK InsurTech sector increasing to $9.9m, more than doubling from the figures recorded in 2022.

The largest of these tranches was secured by Quantexa, a firm which provides data analytics for anti-money laundering. The London-based firm secured a whopping $129m in a deal which marked the largest European InsurTech deal in 2023, in a round led by GIC.

These large deals are a far cry from the global trends across the sector – underlining the UK’s success in the InsurTech space.

According to FinTech Global, the total investment in European InsurTech companies plummeted by a shocking 84% in 2023, amounting to $823m, showcasing a significant departure from the previous funding levels in 2022.

This was headlined by a sharp 44% reduction in deal numbers compared to the previous year, with only 126 deals sealed across Europe. Impressively, the UK’s aforementioned 46 deals account for a staggering 37% share of the overall total from across the continent.

This concerning decline is attributable to numerous factors. Some parts of the insurance industry, like personal property and casualty (P&C) and health insurance, have entered a mature phase, according to a BCG report. This is leading to lower expectations for private investment growth.

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