March was once again a very quiet month for InsurTech funding. With only three deals announced in recent weeks, this marks the lowest level not just this year but also over the past 18 months.
As the first quarter comes to a close, the numbers show a sharp decline compared to the same period last year: 40% fewer deals announced and 70% drop in total investment volume. It’s a tough environment for the InsurTech sector.
Interestingly, this contrasts with the optimism seen at InsurTech Insights, the leading European conference on insurance innovation, held in London recently. Large corporations, startups, and investors gathered for two days of discussions, and the energy felt much more positive compared to last year’s gloomy atmosphere.
While it wasn’t a moment of euphoria, there was clear enthusiasm among attendees. This shift in sentiment may be fueled by several factors: the AI hype – More than half of the startup booths showcased AI-related solutions, and the opening keynote by Lemonade’s CEO focused on AI’s role in insurance ; NEXT Insurance’s acquisition – The $2.6 billion purchase of the US startup by reinsurer MunichRE proved that InsurTech still holds value ; a stronger wave of mature startups – Both in FinTech and InsurTech, we’re seeing more well-established players attracting investor interest.
Two out of three deals this month were Series B rounds, and interestingly, two startups – Napo (UK) and Dalma (France) – operate in pet insurance, a long-standing InsurTech trend that continues to attract new players. Both raised similar amounts and shared comparable key metrics.
In total: 3 deals announced for a total of €35M invested.
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Let’s take a closer look at the three biggest funding rounds this month and what they reveal about industry trends.
The Spanish startup InsurCEO announced a new funding round without disclosing the amount. However, it did reveal that Arquia Bank has acquired a 40% stake in the company. This strategic investment will support InsurCEO’s growth as it currently serves 4,000 clients. The startup focuses on online insurance for SMEs, offering products like professional liability (RC Pro) and cyber insurance. Founded in 2020, the company has 14 employees, according to LinkedIn—a 7% drop compared to last year.
Napo, a UK-based pet insurance startup, raised £12 million in its third funding round since launching in 2021. The round saw Mercia Ventures join its existing investors. The startup operates exclusively in the UK and is expected to cover 100,000 pets by the end of the year. Last year, it insured 60,000 pets, generating £18 million in premiums. This funding round comes more than two years after its previous £15 million round, which was slightly larger. Currently, Napo has 119 employees, down 8% year-over-year.
Dalma, a French pet insurance startup, secured the largest deal of the month, raising €20 million in a round led by FinTech-focused fund Breega. This round comes nearly three years after its June 2022 funding, where it raised €15 million. Dalma now covers over 60,000 pets, up from 20,000 at the time of its last funding. With an average premium of €300 per pet, Dalma is estimated to generate €18 million in annual premiums, closely matching the €17 million it has raised since launching in 2021. Unlike the other startups, Dalma has grown its team, now employing 154 people, up 2% year-over-year, according to LinkedIn.
