The insurtech sector in Southeast Asia saw a sharp funding decline in 2024, dropping 61% to US$193 million from US$495 million in 2023, according to a Tracxn report.

Global economic challenges, including inflation and geopolitical uncertainties, contributed to the downturn.

Seed-stage funding fell 16% to US$7.7 million, and early-stage investments plunged 80% to US$38.5 million.

However, late-stage funding rose 11% to US$147 million, with Bolttech securing the largest deal of the year at US$100 million in a series C round.

The second half of 2024, especially Q4, saw a funding rebound, reaching US$111 million, a 35% increase from the first half but still 50% lower than H2 2023.

Singapore led the region with US$135 million, followed by Jakarta (US$50.5 million) and Kuala Lumpur (US$1.2 million).

Acquisition activity also slowed, with only one recorded deal, Roojai’s acquisition of Lifepal, compared to five in 2023.

No new unicorns emerged for the second consecutive year.

Despite the decline, government initiatives and global interest indicate potential for recovery in the sector.