US InsurTech Sector Sees Sharp Decline in Deal Activity and Funding in H1 2024

In the first half of 2024, the US InsurTech sector experienced a significant downturn in both deal activity and funding. There were only 53 deals recorded, a 43% decrease from 93 deals in the same period last year. Funding also dropped sharply, with InsurTech companies raising just $0.5 billion, down 78% from $2.3 billion in H1 2023. At the current rate, the sector is on track for a projected total of 106 deals in 2024, marking a 30% decline from 153 deals in 2023.

The largest InsurTech deal of the first half was a $32 million Series A funding round for Healthee, a healthcare tech company. Co-led by Fin Capital, Glilot Capital Partners, Group11, and strategic partner TriNet, the funding aims to enhance Healthee’s AI-driven platform, which offers personalized healthcare solutions and support. This investment underscores Healthee’s growing role in the sector, focusing on cost reduction and improved care outcomes for employers and employees.

California remains a major hub for InsurTech and FinTech, leading the US with 15 deals, accounting for 28.3% of the national total in H1 2024. The state also led the broader FinTech sector with 497 funding rounds, capturing 31% of the market despite a drop from the previous year. California’s dominance highlights its critical role in the financial technology industry.