Eight of the 10 biggest third-quarter insurtech funding rounds were AI-centred, according to a Gallagher Re global update. 

The average deal size for AI-driven insurtechs was $US34.9 million ($54.10 million). They attracted 29 deals and 63% of the $US1.38 billion ($2.08 billion) raised in the quarter.

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

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

Mega-round deals of more than $US100 million ($150.54 million) attracted 56% of funding.

There were 77 insurtech deals in the quarter, the lowest number in almost four years and down from 82 in the previous corresponding quarter.

The number of early-stage deals fell to 38 from 50 as most tech investment from insurance companies was for mid-stage rounds.  

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, 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.

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.