Onsurity, an insurance technology business, has secured $24 million in Series B investment backed by the World Bank’s International Finance Corporation.

In 2023, the insurtech market is expected to be worth $20,667.5 million. It is predicted to rise at a compound annual growth rate (CAGR) of 26.1% to $210,664.3 million by 2033. 

Funding for insurtech has reduced in 2023: 

Deal sizes reached $2.4 billion in the first half of 2023, down from $4.8 billion in the second quarter of 2021.

Compared to the first half of 2022, venture capital (VC) investment fell by more than 50% in the first half of 2023. Insurtech financing has returned to levels seen in 2018-2019.

Some insurtechs, however, outperform others. Partnerships and new technologies, such as generative AI, might reshape the leaderboard. 

Insurtech trends for 2023 include: 

  • Corvus Insurance uses artificial intelligence (AI) methods to detect and anticipate hazards.
  • Many insurance companies are developing AI solutions, but the majority are still in the beta testing stage.
  • Cyber insurance will grow more effective over time.

Nexus Venture Partners and Quona Capital, both existing investors, also participated in the round. This brings the startup’s total investment to $40 million.

The three-year-old startup claimed in August it caters to over 5,000 businesses in 26 Indian states and three union territories. “Over 80% of businesses purchasing healthcare memberships from Onsurity have ventured into employee healthcare for the first time,” the company said in its statement.

This cash will be used by the insurtech firm to develop a technological solution driven by artificial intelligence (AI) that would eliminate the lengthy waiting times and uncertainties that are traditionally associated with claims. It also plans to expand its ties to 50,000 firms and reach more than 5 million people by 2026.

According to the corporation, a part of this cash will also go towards the company’s efforts to map its route to profitability.

Yogesh Agarwal, founder and CEO, Onsurity said, “Our goal has always been to revolutionise employee healthcare benefits, making them accessible and user-friendly for India’s SMEs. With the strong support of IFC, Nexus Venture Partners, and Quona Capital, we will further intensify our efforts in scaling our tech-based platform which will enable us to extend insurance coverage to a larger spectrum of SMEs, ensuring a comprehensive safety net for their operations.”

The fresh infusion of funds will supercharge our mission to broaden our product offerings by crafting one of the finest tech-led distribution stacks in the industry,” Kulin Shah, co-founder and COO, Onsurity added.

Under Onsurity Plus, the firm provides a variety of products, including cyber insurance, D&O liability insurance, and commercial general liability insurance, among others.