Insurtech fund raisings rose to a record $US4.8 billion ($6.5 billion) in the June quarter, boosted by mega-rounds that raised at least $US100 million ($135 million), Willis Towers Watson (WTW) says.

The money raised across 162 deals was mainly for later-stage players seeking expansion, but the number of early-stage deals also increased.

Insurtechs focused on distribution accounted for 55% of start-up deals, and for 10 of the 15 mega-rounds, with most of the distribution firms targeting reduced dependence on agent channels.

Of all the second quarter deals, 73% were for property and casualty-related insurtechs, while 43 companies raised funds for life and health technology.

Funds were raised by companies from 35 countries, including new entrants Botswana, Mali, Romania, Saudi Arabia, and Turkey.

Half-year funding of $US7.4 billion ($10 billion) compares with $US7.1 billion ($9.6 billion) for all of last year, WTW says in its latest Insurtech briefing.

WTW Global Head of Insurtech Andrew Johnston warns insurtechs that rush toward listing may face difficult market conditions.

“In particular, as many risk-originating insurtechs are maturing and looking to go public, we are seeing the initial public offering trajectory for some businesses happening earlier and earlier in the funding cycle,” he says.

An optimist could see that as great businesses coming through that don’t need to cede unnecessary levels of equity or to go through further pilots or proof of concepts, while a cynic might see it as a rushed move to make the most of a bullish investment landscape that is likely to turn tide before long, he says.