The recent plunge in Southeast Asia’s insurance technology (insurtech) funding, with a 61% drop to $193m in 2024 from $495m in 2023, is indicative of a broader global funding downturn. This downturn is driven by macroeconomic uncertainties, inflation, and higher interest rates, according to the Tracxn Geo Annual Report: SEA InsurTech 2024. The decline was most notable in seed-stage funding, which saw a 16% decrease to $7.7m, and early-stage investments, which plunged over 80% to $38.5m.

Despite this downward trend, late-stage funding saw an increase of 11% to $147m, suggesting that established insurtech companies are still attracting investment. The most active funding period in 2024 was the second half of the year, which raised $111m – a figure that is still 50% lower than the same period in 2023.

Meanwhile, in the field of artificial intelligence (AI), there are significant advancements in Indonesia, despite the overall funding decrease. East Ventures, a leading venture capital firm, launched Indo Build AI, a platform intended to encourage knowledge exchanges among AI innovators. This new platform aims to bridge the gap by providing collaboration and innovation platforms, reflecting East Ventures’ commitment to forming an AI ecosystem in Indonesia. This move aligns with the country’s broader digitalization push for efficiency.

Additionally, DCI Indonesia, the country’s top data center operator, has seen its shares surge to record levels amid increasing demand for cloud computing and AI, adding over $2 billion to the wealth of its billionaire cofounders. This boom in AI is also evident in the success of AI-powered solutions such as Mastercard’s TRACE, an AI-powered network-level solution to detect and prevent money laundering. These advancements affirm Singapore’s status as a global tech hub, ranking fourth in FinTech funding behind the US, UK, and India.

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