Daily research from FinTech Global UK remains a leader in the European InsurTech market as deal activity dropped by 40% YoY European InsurTech deal activity dropped by 40% YoY As of 2024 year-to-date, the European InsurTech market has seen a continued decline in both funding and deal activity compared to previous years. InsurTech companies in Europe raised $1.7bn across 81 deals in 2024 YTD, reflecting a 26% drop in funding from the $2.2bn recorded in 2023 and a 62% decrease from the $4.4bn raised in 2020. Deal activity has similarly contracted, with the 81 deals in 2024 YTD representing a 40% decline from the 136 deals completed in 2023 and a 65% drop from the 234 deals recorded in 2020. This sustained decrease in both deal volume and funding highlights ongoing challenges in the European InsurTech market, with investor caution and economic uncertainty continuing to limit growth opportunities. UK InsurTech companies led deal activity by securing 36% of the European InsurTech deal activity The United Kingdom maintained its position as the leading country for InsurTech activity in Europe, recording 29 deals (36% share) in 2024 YTD, down 33% from the 43 deals recorded in 2023. France followed with 11 deals (14% share), marking a 31% decline from 16 deals in 2023. Germany secured the third spot with seven deals (9% share), a significant 46% decrease from the 13 deals completed last year. Despite the overall decline, the United Kingdom’s increased share of activity underscores its dominant role in the European InsurTech market, while France and Germany continue to play key, albeit reduced, roles in driving regional deal activity. hyperexponential, a leader in pricing decision intelligence (PDI) software, secured one of the biggest European InsurTech deals for the year so far with a Series B funding round of $73m hyperexponential’s PDI platform, hx Renew, enabled insurers to leverage large and alternative datasets, develop and refine rating tools rapidly, and employ sophisticated machine learning approaches to price risk and make data-driven pricing decisions at the portfolio and individual level. Since the company’s Series A in 2021, hyperexponential grew sales 10x while staying profitable, serving some of the world’s largest insurers, including Aviva, HDI, and Conduit Re. This latest round of financing would support hyperexponential’s expansion into the United States, targeting the opening of its New York office this year, and enabling increased investment in new product capabilities to serve growing client demand in adjacent insurance markets, including the SME insurance sector. The company planned to double its global team to over 200 in the next year.
