InsurTech in 2024: A year in review & US companies dominated FinTech funding in 2024

InsurTech in 2024: A year in review - The global InsurTech market grew to 25.97bn in 2024 and is expected to reach approximately USD 496.56bn by 2033. This represents a remarkable compound annual growth rate (CAGR) of 38.8% from 2024 to 2033. This rapid expansion is being driven by innovations in artificial intelligence (AI), machine learning (ML), cybersecurity, and a growing emphasis on Environmental, Social, and Governance (ESG) practices.

Read the full story here.

Research highlight

US companies dominated FinTech funding as they secured half of the Top 10 deals in 2024 YTD

Key Global FinTech investment stats in 2024 YTD:

• Global FinTech funding dropped by 48% in 2024 YoY
• US companies secured half of the Top 10 deals to continue its domination of the FinTech marketplace
• Sedgwick, a global leader in claims management, secured one of the largest deals for the year so far with a funding round of $1bn

Global FinTech funding dropped by 48% in 2024 YoY

In 2024 year-to-date (YTD), the global FinTech sector recorded 4,289 deals, reflecting a substantial 64% decline compared to the 11,953 deals completed in 2020 and a 56% drop from the 9,665 deals recorded in 2023.

Total funding in 2024 YTD amounted to $86.2bn, marking a significant 53% decrease from the $182.1bn raised in 2020 and a 48% decline compared to the $164.5bn raised in 2023.

This stark reduction in activity and funding reflects the challenges posed by macroeconomic uncertainties, a recalibration of valuations, and investor risk aversion across the global FinTech landscape.

US Companies secured half of the Top 10 deals to continue its domination of the FinTech marketplace

The composition of the top 10 deals in 2024 YTD reflects notable shifts in regional dominance.

The United States continued to lead with five top deals, up from just two in 2023, highlighting its enduring strength as a FinTech powerhouse.

The United Kingdom maintained its presence with two top deals, consistent with its performance in 2023.

However, other regions saw significant changes: Spain, Canada, and the Philippines each secured a top deal in 2024, marking new entrants to the list, while traditional leaders like Singapore, France, Australia, and Mauritius—prominent in 2023—were absent in 2024.

This evolving geographical distribution suggests both a consolidation of influence by dominant markets like the US and UK and the emergence of new FinTech hubs as global players.

Sedgwick, a global leader in claims management, secured one of the largest deals for the year so far with a funding round of $1bn

This investment, part of a transaction valuing Sedgwick at $13.2bn, brings in Altas alongside current major investors such as Carlyle and Stone Point Capital, reinforcing Sedgwick’s growth trajectory.

Known for its innovative claims-handling platform and expansive service offerings, Sedgwick manages millions of claims across casualty, property, marine, and benefits sectors annually.

The partnership with Altas is poised to bolster Sedgwick’s international expansion, technological advancements, and operational resilience, reinforcing its position as a pioneering force in the InsurTech landscape.  

Weekly FinTech deal roundup

Powerful week for FinTech deals driven by huge Databricks investment – A massive $12.5bn was raised across all FinTech deals reported on by FinTech Global this week, as the year of 2024 comes to a close. Read the full story here.

InsurTech news

• The benefits of claims digitalisation: Streamlining the insurance process - Claims transformation represents a strategic move within the insurance industry to reimagine the claims process. It focuses on integrating digital technology, data analytics, and streamlined workflows to elevate customer experiences, reduce operational costs, and enhance claims outcomes. Global IT business products provider Comarch delves into the key benefits of claims digitalisation, and how it is streamlining the insurance process. Read the full story here.
• The future of insurance: Key priorities for 2025 - The insurance industry is undergoing a rapid transformation driven by changing demographics, evolving customer expectations, and advancements in digital technology and analytics. Insurers are now tasked with elevating their operational and technological capabilities, innovating product solutions, and expanding their value propositions. With these growing pressures, IntellectAI looks ahead to what trends may dominate the sector in 2025 and beyond. Read the full story here.
• A comprehensive guide to introducing new insurance products - Introducing new insurance products can be a challenging journey, requiring careful planning, a thorough understanding of market needs, and effective execution. A recent white paper published by Akur8, titled From Idea to Market: A Comprehensive Guide to Introducing New Insurance Products, offers valuable insights into how InsurTechs and insurers can streamline this process. Read the full story here.

WealthTech news

• How AI trends are transforming wealth management - The financial world is undergoing a profound transformation with the rise of artificial intelligence, particularly in wealth management. AI is reshaping asset management, data analytics, and client interactions, enabling wealth managers to deliver greater precision, efficiency, and transparency to modern investors. Read the full story here.
• Velexa and Ajyad Capital unite to revolutionise Shari’ah-compliant investing in the GCC - Velexa, a leading WealthTech company, and Ajyad Capital, a Bahrain-based investment management firm, have entered a strategic partnership to revolutionise investing in the Gulf Cooperation Council (GCC) region. Read the full story here.
• Harnessing generative AI in wealth management while mitigating risks - The wealth management sector has seen a gradual adoption of generative AI (GenAI) and large language models (LLMs), particularly as firms look to enhance efficiency and client interactions. Read the full story here.

RegTech news

• Shaping the future of fraud prevention with Open Source Intelligence - As consumer expectations continue to rise in step with regulatory demands, fraud and compliance teams face a pivotal challenge: how to scale operations without sacrificing security. According to Trustfull CEO Marko Maras, the key lies in leveraging open-source intelligence (OSINT)—a transformative tool that taps into publicly available data to deliver unrestricted, global insights. Read the full story here.
• The top 6 RegTech trends shaping regulatory compliance in 2025 - The RegTech sector has gained significant traction in the financial industry over the past few years, with global adoption accelerating. According to market projections, the RegTech market is expected to hit $25.19bn by 2028, driven by financial institutions’ need to navigate mounting regulatory pressures. Read the full story here.
• How secure collaboration is transforming financial crime detection - Money laundering activities in the United States alone are estimated to total $300bn annually. In 2023, penalties for anti-money laundering (AML) violations in the U.S. exceeded $5bn—a 69% rise from the previous year. These figures underline the urgent need for a more effective approach to combatting financial crime. Read the full story here.

CyberTech news

• SandboxAQ secures over $300m for advancing AI in key industries - SandboxAQ, a leader in the development of artificial intelligence applications, announced today a significant funding achievement, securing over $300m. Read the full story here.
• FinCrime Dynamics raises seed round to advance AI-driven financial crime prevention - FinCrime Dynamics, a UK-based FinTech specialising in criminal behavioural intelligence and data-driven solutions, has secured seed funding to advance its AI-powered platform. Read the full story here.
• Risk intelligence platform Bureau secures $30m Series B funding - Bureau, a risk intelligence platform focused on fraud prevention and identity decisioning, has raised $30m in its Series B funding round. Read the full story here.

ESG FinTech news

• Why early preparation for CSRD reporting in 2026 is essential for compliance - The Corporate Sustainability Reporting Directive (CSRD) is setting new standards for sustainability reporting across the European Union. Read the full story here.
• ESMA sets new standards for naming ESG funds to enhance transparency - The ESMA the regulatory body overseeing the EU’s financial markets, has released a series of Q&A’s to provide further clarity on the application of guidelines regarding the naming of funds using ESG or sustainability-related terms. Read the full story here.
• ESMA launches consultation on digitalising sustainability and financial disclosures - The ESMA has released a new Consultation Paper that outlines its latest proposals for integrating sustainability and financial disclosures into the ESEF. Read the full story here.

Other FinTech news

• FCA discussion paper unveils proposed updates to transaction reporting regime - On 15th November 2024, the FCA published a discussion paper that has significant implications for transaction reporting in the UK. Read the full story here.
• Volume secures $6m in fresh capital to transform payment systems - Volume, a rising star in the FinTech space, has successfully closed a $6m funding round led by United Ventures. Read the full story here.
• How automation can transform compliance with US export restrictions - US export restrictions, governed by the Bureau of Industry and Security (BIS) under the Export Administration Regulations (EAR), play a critical role in safeguarding national security, advancing foreign policy objectives, and preventing weapons proliferation. These regulations require financial institutions to fortify their compliance frameworks, an initiative that has grown in complexity due to new guidance targeting exports particularly to Russia and China. Read the full story here.