Global insurtech funding jumps 66.8% in Q4 as AI and mega rounds drive resurgence

Global insurtech funding surged 66.8% quarter on quarter to $1.68bn in the fourth quarter of 2025, according to Gallagher Re’s latest Global InsurTech report.

This marked the strongest quarterly performance since the  third quarter of 2022, according to the reinsurance broker.

The rebound helped lift full-year 2025 investment to $5.08bn, up 19.5% year on year.

Property and casualty led the Q4 resurgence, with funding rising 90.5% to $1.31bn, while life and health increased 14.9% to $361.52m.

Gallagher Re said early-stage funding reached an 11-quarter high, climbing from $277.65m in Q3 to $403.09m in Q4.

Deal activity also strengthened, with total deal count rising 34.2% to 102 and average deal size increasing 20.0% to $18.84m.

The quarter was characterised by the return of so-called mega rounds, defined as capital raises of more than $100m.

Five companies, CyberCube, ICEYE, Creditas, Federato and Nirvana, collectively secured $662.81m in mega rounds during Q4.

For the full year, the number of $100m plus rounds almost doubled from six to 11, while total mega round funding rose 53.2% to $1.43bn.

The report also highlighted a shift in the investor base, with (re)insurers completing 162 InsurTech investments in 2025, more than in any previous year on record.

Gallagher Re said this suggested carriers increasingly view InsurTechs as integral to their own strategic development.

AI remained the dominant theme throughout the year.

Two thirds of total 2025 InsurTech funding went to AI-focused companies, accounting for $3.35bn across 227 deals.

In Q4 alone, AI-centred InsurTechs raised $1.31bn across 66 deals, representing 77.9% of quarterly funding, with an average deal size of $22.14m.

Andrew Johnston, global head of insurtech at Gallagher Re, said: “AI is squarely the focus of most of the contemporary InsurTech world. Over time, we see AI becoming so integrated into InsurTech that the two may well become synonymous.”

He added: “The long term question that the industry must consider now is the ‘so what’ problem: as the implementation of AI starts to deliver efficiency gains, it is imperative that the industry works out how to best use all of this newly freed up time and/or resource.”

The report also examined life, accident and health InsurTechs, which have raised $25.15bn since 2012.

It said AI has the greatest potential in biometrics derived from devices, access to health record data and molecular mapping and genomics.

Freddie Scarratt, global deputy head of InsurTech at Gallagher Re, said: “Historically, the sector has taken a prudent approach to innovation, relying on established actuarial tables and thorough underwriting processes to ensure stability.”

He added: “However, recent developments suggest that the sector is shifting gears, moving from gradual evolution to an accelerated adoption of advanced technologies.”