Funding for InsurTech in Southeast Asia has seen a dramatic decline in 2024, falling by 61% to $193m from $495m in 2023, as reported in the Tracxn Geo Annual Report: SEA InsurTech 2024.
The drop in funding is part of a wider global downturn influenced by macroeconomic uncertainties, inflation and rising interest rates.
Funding decreased across nearly all investment stages. Seed-stage funding fell by 16% to $7.7m, while early-stage investments plummeted by over 80% to $38.5m.
In contrast, late-stage funding rose by 11% to $147m.
Although this figure still represents a 50% decrease compared to H22023. The fourth quarter recorded the year's highest funding activity, securing $105m.
Despite the downturn in InsurTech funding across Southeast Asia, the region's economic resilience and increasing government support suggest a potential for recovery.
Singapore maintained its status as a global tech hub, ranking fourth in FinTech funding, trailing behind the US, UK, and India.
In terms of funding rounds, Bolttech led the way with a $100m Series C, marking the only round exceeding $100m in 2024, compared to two such rounds in 2023.
Funding in Insurance IT, Internet-First Insurance Platforms, and Employer Insurance was the most substantial, with Insurance IT companies raising $135m—a 47% decline from 2023.
Internet-First Insurance Platforms attracted $51.7m, a significant 78% drop, while Employer Insurance garnered $6.5m, down 65%.
No new unicorns emerged in the sector for the second consecutive year, and acquisition activity also slowed, with only one deal recorded—Roojai’s acquisition of Lifepal—compared to five in 2023.
Singapore led InsurTech funding with $135m, followed by Jakarta at $50.5m and Kuala Lumpur at $1.2m.
The presence of major global corporations and a robust tech ecosystem continues to foster optimism for future growth in the region.