Key United States InsurTech investment stats in 2024:
- US InsurTech funding dropped by a third in 2024 YoY
- Deals over $100m declined by 38% as investors grow cautious
- Cowbell, a leading provider of cyber insurance for SMEs, secured one of the biggest US InsurTech deals for the year with a $60m Series C funding round
US InsurTech funding dropped by a third in 2024 YoY
In 2024, the US InsurTech market experienced a marked decline in both deal volume and funding compared to previous years.
Total funding amounted to $2.8bn across 98 deals, a 33% drop in funding from $4.1bn recorded in 2023 and a 56% decrease from the $6.3bn raised in 2020.
Deal activity also fell sharply, with the 98 deals completed in 2024 representing a 43% decline from 2023’s 173 transactions and a steep 62% drop from the 261 funding rounds seen in 2020.
This significant reduction in activity reflects broader challenges in the InsurTech space as the sector continues to face headwinds.
Deals over $100m declined by 38% as investors grow cautious
Funding from deals under $100m in 2024 totalled $1.2bn, down 25% from the $1.6bn recorded in 2023 and 54% below the $2.6bn recorded in 2020.
Larger deals valued at $100m or more raised $1.6bn in 2024, reflecting a 38% decrease from the $2.6bn recorded in 2023 and a 58% drop from the $3.7bn raised in 2020.
Despite the reduction in total funding, the average deal value rose consistently over the years.
In 2020, the average deal value was $24.1m, increasing 18% to $23.8m in 2023 and surging by 33% to $28.1m in 2024.
This uptick in average deal value highlights a trend where fewer but more substantial investments dominate the InsurTech landscape.
Cowbell, a leading provider of cyber insurance for SMEs, secured one of the biggest US InsurTech deals for the year with a $60m Series C funding round
The funding round was led by Zurich Insurance Group to drive advancements in its technology and operations.
The funding will enable Cowbell to leverage AI and Generative AI (GenAI) to enhance its digital platform, streamline decision-making for brokers and policyholders, and deliver greater transparency in cyber risk management.
The capital will also support the development of new cutting-edge products, expansion into international markets, and bolstering of cyber resilience services.
By reinvesting in its AI-driven infrastructure, Cowbell aims to raise global standards in cyber resiliency and solidify its position as a leading innovator in the evolving cyber insurance landscape.
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