Gallagher Re: Global insurtech funding surpasses $60bn milestone

Cumulative global investment in insurtech has exceeded $60bn for the first time, according to Gallagher Re’s “Global Insurtech Report Q2 2025”.

The milestone reflects continued investor appetite for innovation across the insurance value chain, with a total of $60.8bn raised since the reinsurance broker began tracking insurtech funding in 2012.

Of that sum, around $15bn — roughly one quarter — has been channelled into firms developing artificial intelligence-led solutions for the insurance industry.

“It is incumbent upon insurtechs, AI companies and our industry to utilize and showcase the best use-cases of this technology, if we are to remain relevant to the society we support and protect,” said Andrew Johnston, global head of insurtech at Gallagher Re, author of the report.

“Our industry is undoubtedly committing to AI, but it should increase its focus, if anything. There remains some skepticism in (re)insurance of just how impactful AI could be, but it is becoming clearer that this is a once-in-a-generation technology that is ignored at our peril.”

Johnston noted that while $60bn is a significant figure for a single industry segment, it pales in comparison to the estimated $1.6trn that has been invested into AI globally since 2013, according to a Stanford University study that includes private investment, IPOs and M&A.

The Gallagher Re report shows that global insurtech funding declined 16.7% quarter-on-quarter to $1.09bn in Q2 2025. P&C insurtechs raised $362.2m in the period — the lowest total since Q1 2018 — while L&H insurtech funding nearly tripled to $728.5m.

AI-led ventures accounted for 57.1% of all insurtech deals in Q2.

While funding volumes surged between 2012 and 2021, with the sector raising $40bn by the end of that year, activity has slowed markedly since. It took five years for the industry to reach $10bn, but just two more to hit $20bn.

The next $20bn arrived within a further two years, before a period of investor caution between 2022 and 2025 saw a more measured trajectory toward the $60bn mark.

This year’s “Global Insurtech Report” series builds on 2024’s quarterly focus on AI implementation across the insurance value chain, narrowing in on the largest lines of business by gross written premium: auto/motor, property, commercial, and life & health.

The Q2 2025 edition places property insurtechs under the microscope.

Gallagher Re estimates that $12.9bn of cumulative investment since 2012 has gone into property-related ventures. While funding volumes in this segment peaked in 2021, the subsequent decline has been less pronounced than in other classes of business.

The report also outlines key applications of AI in property reinsurance, with particular focus on the modelling and pricing of catastrophe-exposed perils such as wildfire, wind and earthquake.

“In the years to come, the adoption of AI will become a significant competitive differentiator for property reinsurers,” said Freddie Scarratt, global deputy head of insurtech at Gallagher Re.

“Those that effectively integrate it into their core processes, from risk assessment and pricing to claims management and capital allocation, will gain an edge in a challenging market.

“And as the reinsurance industry evolves to better manage the increasing threat from catastrophes, this will ultimately contribute to a more stable market, capable of supporting communities and economies in the face of adversity. The journey into AI’s frontier is not just about technological adoption; it’s about reshaping the future of risk transfer itself,” Scarratt added.