Record Re/Insurance Investments Drive Surge in Global Insurtech Funding: Insights from Gallagher Re

Investments in global insurtech experienced a significant rise of 19.5% in 2025, reaching US$5.08 billion, up from US$4.25 billion in FY 2024. This marks the first annual increase since 2021, as reported in Gallagher Re’s Q4 Global Insurtech Report.

In the fourth quarter of 2025, global insurtech funding surged by 66.8%, climbing to US$1.68 billion from US$1.01 billion in Q3. This funding level represents the largest quarterly amount since Q3 2022, when US$2.35 billion was raised.

The surge in funding can be attributed to several factors. Gallagher Re noted a growing interest from insurers and reinsurers, as opposed to private equity firms. Additionally, there has been a notable increase in funding for insurtechs focused on artificial intelligence (AI), alongside the return of “mega-rounds,” where over US$100 million is raised in a single funding round.

In 2025, re/insurers made a record number of private technology investments into insurtechs, totaling 162 deals. This indicates a “changing of the guard” within the insurtech investor community.

“This suggests that re/insurers are not only more comfortable investing, but also that they see insurtechs as a route forward in their own strategies,” the report stated.

AI Investments

Gallagher highlighted that two-thirds of insurtech funding last year was directed towards AI-centered insurtechs, which collectively raised US$3.35 billion across 227 deals. This accounted for 66% of total funding and 62% of total deals, showcasing the re/insurance industry’s commitment to AI technology.

In Q4 2025, AI-focused insurtechs raised US$1.31 billion across 66 deals, with an average deal size of US$22.14 million, slightly above the overall Q4 average. Notably, 77.9% of insurtech funding during this quarter was allocated to AI-centered companies.

“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,” stated Andrew Johnston, global head of Insurtech at Gallagher Re.

In his forward to the report, Johnston emphasized that three-quarters of all funding is now directed towards insurtech businesses with an AI label, whether they are AI-powered or provide AI tools to other businesses.

“We do not see this trend slowing down. In fact, we see AI becoming so integrated into insurtech over time that the two may well become effectively synonymous,” he added.

Mega-Rounds Fuel P/C Rebound

Property/casualty (P/C) insurtech funding rebounded from 2024’s low, increasing by 34.9% to US$3.49 billion in 2025. This rebound was largely fueled by mega-rounds, with funding rising from US$320 million in 2024 to US$1.06 billion, and deal count increasing by 20% to 264.

In P/C insurtech funding, there was a remarkable 90.5% quarter-on-quarter increase to US$1.31 billion, driven by mega-round deals. Five companies—CyberCube, ICEYE, Creditas, Federato, and Nirvana—collectively secured US$662.81 million in mega-rounds during the fourth quarter.

In contrast, life and health (L&H) insurtech funding and deal count both saw declines last year, with funding dipping by 4.6% year-on-year to US$1.59 billion, and deal count falling by 17.7% to 102.

Additional notable findings from the report include:

• Tech vendors achieved record-high deal shares across P/C and L&H insurtech, with nearly 60% (58%) of P/C deals going to business-to-business insurtechs, a 12 percentage point increase from 2021’s funding boom.
• Deal shares for insurtechs in the lead generator/broker/MGA category fell from 42% in 2024 to 35% in 2025, marking the lowest on record.
• The global deal share of U.S.-based insurtechs rose by 5.16 percentage points between 2024 and 2025, the largest gain among all countries, increasing from 50.58% to 55.74%.
• Other than the U.S., only Bermuda saw its deal share increase by more than one percentage point year-on-year.
• Re/insurers are leveraging AI for machine learning, data entry and classification, advanced and predictive analytics, large language models, and automation.

Topics
Mergers & Acquisitions
Trends
InsurTech
Tech
Reinsurance
A.J. Gallagher

Investments in global insurtech experienced a significant rise of 19.5% in 2025, reaching US$5.08 billion, up from US$4.25 billion in FY 2024. This marks the first annual increase since 2021, as reported in Gallagher Re’s Q4 Global Insurtech Report.

In the fourth quarter of 2025, global insurtech funding surged by 66.8%, climbing to US$1.68 billion from US$1.01 billion in Q3. This funding level represents the largest quarterly amount since Q3 2022, when US$2.35 billion was raised.

The surge in funding can be attributed to several factors. Gallagher Re noted a growing interest from insurers and reinsurers, as opposed to private equity firms. Additionally, there has been a notable increase in funding for insurtechs focused on artificial intelligence (AI), alongside the return of “mega-rounds,” where over US$100 million is raised in a single funding round.

In 2025, re/insurers made a record number of private technology investments into insurtechs, totaling 162 deals. This indicates a “changing of the guard” within the insurtech investor community.

“This suggests that re/insurers are not only more comfortable investing, but also that they see insurtechs as a route forward in their own strategies,” the report stated.

AI Investments

Gallagher highlighted that two-thirds of insurtech funding last year was directed towards AI-centered insurtechs, which collectively raised US$3.35 billion across 227 deals. This accounted for 66% of total funding and 62% of total deals, showcasing the re/insurance industry’s commitment to AI technology.

In Q4 2025, AI-focused insurtechs raised US$1.31 billion across 66 deals, with an average deal size of US$22.14 million, slightly above the overall Q4 average. Notably, 77.9% of insurtech funding during this quarter was allocated to AI-centered companies.

“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,” stated Andrew Johnston, global head of Insurtech at Gallagher Re.

In his forward to the report, Johnston emphasized that three-quarters of all funding is now directed towards insurtech businesses with an AI label, whether they are AI-powered or provide AI tools to other businesses.

“We do not see this trend slowing down. In fact, we see AI becoming so integrated into insurtech over time that the two may well become effectively synonymous,” he added.

Mega-Rounds Fuel P/C Rebound

Property/casualty (P/C) insurtech funding rebounded from 2024’s low, increasing by 34.9% to US$3.49 billion in 2025. This rebound was largely fueled by mega-rounds, with funding rising from US$320 million in 2024 to US$1.06 billion, and deal count increasing by 20% to 264.

In P/C insurtech funding, there was a remarkable 90.5% quarter-on-quarter increase to US$1.31 billion, driven by mega-round deals. Five companies—CyberCube, ICEYE, Creditas, Federato, and Nirvana—collectively secured US$662.81 million in mega-rounds during the fourth quarter.

In contrast, life and health (L&H) insurtech funding and deal count both saw declines last year, with funding dipping by 4.6% year-on-year to US$1.59 billion, and deal count falling by 17.7% to 102.

Additional notable findings from the report include:

• Tech vendors achieved record-high deal shares across P/C and L&H insurtech, with nearly 60% (58%) of P/C deals going to business-to-business insurtechs, a 12 percentage point increase from 2021’s funding boom.
• Deal shares for insurtechs in the lead generator/broker/MGA category fell from 42% in 2024 to 35% in 2025, marking the lowest on record.
• The global deal share of U.S.-based insurtechs rose by 5.16 percentage points between 2024 and 2025, the largest gain among all countries, increasing from 50.58% to 55.74%.
• Other than the U.S., only Bermuda saw its deal share increase by more than one percentage point year-on-year.
• Re/insurers are leveraging AI for machine learning, data entry and classification, advanced and predictive analytics, large language models, and automation.

Topics
Mergers & Acquisitions
Trends
InsurTech
Tech
Reinsurance
A.J. Gallagher