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US InsurTech funding doubled in Q3

US InsurTech funding doubled in Q3 with California-based companies closing quarter of all deals

Key US InsurTech investment stats in Q3 2024:

  • US InsurTech funding doubled in Q3 YoY
  • California continues to dominate the US InsurTech space after it secured a quarter of all the deals in the region for Q3
  • Sedgwick, a global leader in claims management, secured the largest US InsurTech deal for the quarter with a funding round of $1bn

In Q3 2024, the US InsurTech market experienced a significant increase in funding despite a decline in deal activity compared to the previous quarter.

The sector recorded 41 funding rounds, a 38% drop from the 66 deals completed in Q3 2023.

InsurTech companies in the US raised a substantial $1.91bn in Q3 2024, more than doubling the $955m raised in the same period last year.

However, this funding figure is skewed by a $1bn funding round raised by Sedgwick, a global leader in claims management, loss adjusting, and tech-enabled business solutions.

Removing this outlier, third quarter funding would be $908m, resulting in a 5% drop in funding in comparison to Q3 2023.

As mentioned, Sedgwick secured the largest US InsurTech investment of Q3 2024 with a strategic $1bn equity commitment from Altas Partners.

This investment, part of a transaction valuing Sedgwick at approximately $13.2bn, brings in Altas alongside current major investors such as Carlyle and Stone Point Capital, reinforcing Sedgwick’s growth trajectory.

Known for its innovative claims-handling platform and expansive service offerings, Sedgwick manages millions of claims across casualty, property, marine, and benefits sectors annually.

The partnership with Altas is poised to bolster Sedgwick’s international expansion, technological advancements, and operational resilience, reinforcing its position as a pioneering force in the InsurTech landscape.

FinTech Global

Alan Demers

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