Global investment in insurance technology firms dropped 50 percent to $2.41 billion in the second quarter, broker Gallagher Re said in a report.
Insurance tech firms make up around 10 percent of the fintech sector and have seen several successful fundraisings in recent years, Reuters news report said. German digital insurance startup Wefox last month said it had raised $400 million from investors, valuing the business at $4.5 billion.
The drop in valuations could lead to insurtech M&A deals or disposals which were unlikely six months ago, said Andrew Johnston, global head of insurtech at Gallagher Re.
However, investment in insurance technology companies picked up slightly from the first quarter, gaining 8 percent, the report showed.