Insurtech Gateway has secured Seed Fund II financing which it says will support 20 startup teams over the next four years, from pre-seed to Series A.

The fund is backed by global (re)insurers and other innovation-focused organisations.

Founded in 2016, Insurtech Gateway has authorised incubators in Sydney and London.

“We're so pleased to bring to Australia an insurtech-dedicated fund,” Insurtech Gateway Australia MD Simon O’Dell said. “We've been working hard to close the early-stage funding gap for insurtechs and this is a big milestone for Australian insurtechs.”

Mundi Ventures CEO Javier Santiso says the insurtech funding environment has “cooled off from the 2021 euphoria” but the industry still offers significant opportunity and is “waiting for much disruption”.

“It is great to see Insurtech Gateway launching a new fund to help close the insurtech funding gap,” Mr Santiso said. "Insurance is still a huge market with very low investment compared to fintech and health.”

Insurtech attracted a “meagre” $US43 billion ($62 billion) in venture capital funding globally from 2016 to 2022, compared with $US323 billion ($467.3 billion) in other fintech.

Insurtech Gateway has worked with insurtechs ByMiles, Humn, Coincover, Nayms, Loadsure, Bondaval, Collective Benefits, and Floodflash.

“We are proud to have created a place where independent founders can build sustainable partnerships with progressive insurers, regulators and co-investors,” UK-based CEO Richard Chattock said.