Global insurtech funding totalled $US1.38 billion ($2.08 billion) in the third quarter, up from $US1.1 billion ($1.66 billion) a year earlier to its highest level since the first quarter of last year.

There were 77 deals – the lowest number in almost four years – compared with 82 in the previous corresponding quarter, according to a Gallagher Re report.

The number of early-stage deals fell to 38 from 50.

Gallagher Re global head of insurtech Andrew Johnston says funding is “very vibrant and our industry continues to be very willing to support technological innovation”.

“This most recent quarter has been fascinating, with a lot of activity bucking certain trends ... principally fewer mega-round deals,” he added.

Mega-round deals of more than $US100 million ($150.54 million) attracted 56% of funding, while 63% went to “AI-centred insurtechs”.

AI was “extremely pertinent”, Mr Johnston says, while most tech investment from insurance companies was for mid-stage funding rounds.

AI-centred insurtechs raised $US897.4 million ($1.35 billion) across 29 deals, and eight of the top 10 companies by funding round were AI-centred.

In Australia, Kismet Healthcare raised $US32.2 million ($48.47 million) in September from MassMutual Ventures.

Melbourne-based Kismet’s platform matches people with verified service providers for needs such as occupational therapy and physio, support work and plan management.

Also in the third quarter, brokerage EBM Insurance & Risk partnered with analytics firm CyberCube to help assess and manage cyber capabilities for businesses.

And QBE Ventures participated in a $US28.5 million ($42.9 million) funding round for US-based Demex, which focuses on non-catastrophic weather risk management.

Demex offers retained climate risk reinsurance and operational climate risk coverage, which use customer data to quantify and transfer unique financial risks for insurers and corporates. It serves the insurance industry by providing supplementary reinsurance programs and budget stability for businesses affected by volatile weather.

Zurich led a $US60 million ($90.32 million) funding round for Cowbell in July and, in September, Zurich Resilience Solutions partnered with TechAssure, giving members access to its cyber resilience and risk transfer services.

See the Gallagher Re report here.