B2B SaaS Dominates 2024 Insurtech Funding Trends

In 2024, B2B SaaS continues its upward trajectory, capturing an unprecedented 43% of insurtech venture capital funding—an increase of 11 percentage points from 2023 and more than double its share from 2019. 

Funding is heavily concentrated on startups offering insurance payments platforms, underwriting and risk management software, claims administration tools, and core insurance platforms. Notably, 2024 marks the first time that product pricing, underwriting, and claims management have attracted the majority of insurtech funding, a clear indicator of the sector’s strategic focus on operational precision and efficiency.

AI is a key driver of this shift. Many B2B SaaS players are either AI-native or expanding their capabilities with AI-powered tools, enabling insurers to optimize underwriting models, detect fraud, and streamline claims processing. However, AI also presents challenges around regulatory compliance, data privacy, and competitive disruption, requiring careful navigation to sustain growth.