2024 Sees Dramatic 75% Decline in Asian InsurTech Funding with No Deals Exceeding $100M

2024 Sees Dramatic 75% Decline in Asian InsurTech Funding with No Deals Exceeding $100M

In 2024, the Asian InsurTech industry witnessed a significant decline in funding, with investments dropping dramatically compared to previous years. This article delves into the key statistics, trends, and notable events shaping the Asian InsurTech landscape this year.

Decline in Asian InsurTech Funding

The Asian InsurTech market faced a challenging year in 2024, as funding decreased by an astounding 79% from the previous year. Here are the key statistics:

  • Number of Deals: 23 deals were completed in 2024, a 63% decrease from the 63 deals in 2023 and a 77% decline from 99 deals in 2020.
  • Total Funding: Only $269 million was raised, down from $1.3 billion in 2023 and $2.9 billion in 2020.
  • Average Deal Size: The average deal size fell to $11.7 million, a 43% drop from $20.3 million in 2023, yet up 9% from $10.6 million in 2020.

Investment Trends in 2024

The year 2024 was marked by a shift in investor behavior, with a notable absence of high-value transactions:

  • No deals exceeding $100 million were recorded, contrasting with $559 million raised from such deals in 2023.
  • All funding came from smaller deals, totaling $269 million—a 63% drop from $719 million in 2023.

This cautious approach indicates a conservative funding environment, as investors are favoring lower-risk, smaller deals instead of large-scale investments in the Asian InsurTech sector.

Highlight: Peak3’s Successful Funding Round

Amidst the downturn, one standout success was Peak3, a next-generation insurance core system SaaS provider. They secured the largest InsurTech deal in Asia this year with a $35 million Series A funding round, led by EQT and Alpha JWC Ventures.

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This funding will facilitate Peak3’s expansion into the EMEA region, further investments in AI-driven insurance solutions, and the development of its cloud-native insurance core and distribution system. Since its establishment in 2018, Peak3 has collaborated with major insurers such as AIA, Generali, Prudential, and Zurich, as well as digital platforms like Grab, Klook, and PayPay to enhance embedded insurance solutions.

Conclusion

The Asian InsurTech market in 2024 reflects a cautious investment landscape, with a significant reduction in both the number of deals and total funding compared to previous years. As companies like Peak3 secure vital funding, the sector may gradually adapt to these challenges and redefine its approach to innovation and collaboration.

For more insights into the evolving InsurTech landscape, visit our InsurTech Updates page or explore the latest trends in Forbes InsurTech articles.

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