InsurTech Funding Faces a Challenging Year in Southeast Asia
Funding for InsurTech ventures in Southeast Asia experienced a substantial downturn in 2024, with a 61% decrease, dropping to $193 million from $495 million the previous year. This data comes from the Tracxn Geo Annual Report: SEA InsurTech 2024, which highlights a broader trend of reduced investment influenced by global economic factors.
Economic indicators are impacting InsurTech funding in Southeast Asia.
The decline spans various investment phases. Seed-stage funding fell by roughly 16%, reaching $7.7 million, while early-stage investments saw a sharp decline of over 80%, totaling $38.5 million. Conversely, late-stage funding increased by 11% to $147 million, although that figure still reflects a 50% reduction compared to the second half of 2023. The final quarter of the year saw the highest funding activity, accumulating $105 million.
Despite the overall decrease, the region’s economic strength and increasing government support suggest potential for future growth. Singapore retained its position as a leading global tech hub, securing fourth place in FinTech funding, trailing the US, UK, and India.
In terms of individual funding rounds, Bolttech led the way with a $100 million Series C investment. This was the only round to exceed $100 million in 2024, compared to two in 2023. Companies in Insurance IT, Internet-First Insurance Platforms, and Employer Insurance saw the most significant funding. Insurance IT businesses secured $135 million—a 47% decrease from the previous year. Internet-First Insurance Platforms raised $51.7 million, a considerable 78% drop, while Employer Insurance received $6.5 million, a 65% decrease.
Singapore continues to be a key hub for FinTech and InsurTech.
For the second year in a row, no new unicorns emerged in the sector. Additionally, acquisition activity slowed, with only one deal recorded—Roojai’s acquisition of Lifepal—compared to five in 2023. Leading InsurTech funding, Singapore secured $135 million, with Jakarta at $50.5 million and Kuala Lumpur at $1.2 million.
The presence of major global corporations and a robust tech ecosystem continues to boost optimism for future growth in the area.
