Sydney-based Employment Hero’s major funding round of $183 million in February was one of just five global insurtech “mega rounds” in the first quarter.

Gallagher Re’s inaugural Global InsurTech Report says the online human resources software firm – which offers employees a marketplace for insurance alongside functions like payroll, employment contracts and accounting on a single web app – was second only to Accelerant Holdings.

Accelerant headed the list with a $US190 million ($268.92 million) raising, while Betterfly, Descartes Underwriting and Cowbell Cyber rounded out the top five.

"Australia’s Employment Hero was the second largest deal of the quarter,” the report said.

Employment Hero was founded in 2014 and has since launched in New Zealand, UK, Malaysia and Singapore. Its funding round was led by SEEK Investments and local investors OneVentures and AirTree Ventures and pushed the business past $1 billion “unicorn” valuation status. It employs around 250.

Sydney-based Mercurien, which develops fleet insurance solutions and HDI-backed AuditCover – a fully-digitised audit insurance product, also raised funds in the first quarter, while virtual car dealership Carbar attracted further investment from IAG.

Global mega-rounds totalled $664 million ($939.79 million) in the quarter, representing 30% of all capital invested in the insurtech sector.