’2023 may be the beginning of a new era for insurtech,’ says head of insurtechs 

Gallagher Re’s global head of insurtech Andrew Johnston has warned of investors becoming more “cautious” despite insurtech funding increasing during the first quarter of 2023.

The reinsurance broker’s Global Insurtech Report, which was published today (4 May 2023), revealed that global insurtech funding rose to $1.39bn (£1.1bn) in Q1.

This was up 37.6% from Q4 2022, when it had been $1.01bn (£80m).

Johnston felt the funding totals from Q1 suggested that 2023 could mark a return to the more “normal” levels experienced prior to 2021.

But he warned investors were being “cautious” due to the current economic landscape.

“There is a general reticence to go out alone as an investor at the moment because of the macroeconomic environment,” he told Insurance Times.

“Insurtech returns have not been as spectacular for the investment community as people probably once though they might be.

”That information is well and truly trickling down now to all investors.”

After insurtech funding had a broad-based reset in 2022 compared with 2021’s flurry of activity, he felt 2023 ”may be the beginning of a new era for insurtech”.

“2021 undoubtedly marked the funding peak, fuelled by Covid-19 uncertainty and an organically occurring crescendo,” he added.

“The sector came back down to earth in 2022, leading to some serious restructures, cost-saving actions and new business strategies. A lot of companies did not make it through.”


The report released today is the first of four that will be released in 2023, which will focus on the lifecycle stages of insurtech funding.

This includes early-stage incubation, early-stage acceleration, mid-stage expansion and late growth stages.

For Q1, property and casualty insurtech funding drove the quarterly investment increase, surging by more than 53%.

Meanwhile, average early-stage deals were up by 28% to $8.31m (£6.62m).

Johnston felt founders were now thinking about long-term sustainability and growth, having realised that businesses will need to “pull the plough themselves” and be reliant on their own capabilities and revenue.

“A significant upside seems to be the genuine willingness of many reinsurers, brokers and agents to adopt technology,” he said.

“The pressure is therefore on insurtechs to make their businesses palatable and value-adding.”