Southeast Asia’s (SEA) insurtech market has faced a challenging funding landscape, experiencing notable fluctuations over the past couple of years.
After a record high of US$495 million raised in 2023, 2024 saw a significant 61 percent drop to US$193 million. According to data intelligence platform Tracxn, this decline mirrors a global funding downturn influenced by macroeconomic uncertainties, elevated inflation, and increased interest rates, resulting in a more cautious investment environment.
Despite these financial headwinds and geopolitical complexities, the region has showcased resilience and economic adaptability.
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A closer look at the funding stages reveals a mixed bag. Seed-stage funding experienced a 16 per cent decrease, falling to US$7.7 million in 2024 from US$9.2 million in 2023. Early-stage investments suffered a sharp drop of over 80 per cent, plummeting to US$38.5 million in 2024 from US$353 million in the previous year.
Late-stage funding, however, saw an 11 per cent increase, reaching US$147 million in 2024 compared to US$133 million in 2023.
Interestingly, Q4 2024 emerged as the most active quarter, securing US$105 million, which accounts for nearly half of the year’s total funding. The second half of 2024 proved more fruitful than the first, with US$111 million raised, marking a 35 per cent increase from H1 2024 (US$82 million) but still a 50 per cent decrease from H2 2023 (US$231 million).
In terms of investment focus, Insurance IT companies attracted the most funding, securing US$135 million in 2024. While this figure represents a 47 per cent decrease from 2023’s US$256 million, it shows an 8 per cent increase from 2022’s US$125 million.
Internet-first insurance platforms received US$51.7 million in funding in 2024, a 78 per cent decrease from US$236 million in 2023. The employer insurance segment raised US$6.5 million in 2024, a 65 per cent drop from US$18.5 million in 2023.
The SEA insurtech sector witnessed only one acquisition in 2024, Roojai’s acquisition of Lifepal. No new unicorns emerged in this space in 2024.
Bolttech, an insurance-as-a-service provider, raised US$100 million in its Series C funding round, representing the largest round of the year.
Singapore continues to be a leading hub for insurtech investments, ranking fourth globally in 2024, behind the US, UK, and India. The country attracted US$135 million in insurtech funding in 2024, followed by Jakarta (US$50.5 million) and Kuala Lumpur (US$1.2 million).
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Key investors active in the SEA InsurTech sector include Wavemaker Partners, East Ventures and Openspace Ventures.
Despite the funding downturn, Southeast Asia’s growing economy and increasing government support offer optimism for the insurtech sector. The region’s ability to attract global corporations and maintain its status as a tech hub highlights its potential to drive future growth.
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