Global investment in insurtech saw a major rebound in the first quarter of 2025, rising 90.2% from the previous quarter to reach $1.31 billion, according to Gallagher Re’s latest report.
Property and casualty (P&C) insurtech companies attracted the majority of this funding, raising $1.13 billion—their highest total since the third quarter of 2022.
Despite the overall surge, early-stage investments fell to their lowest level in nearly five years, suggesting a more cautious approach among investors toward startups.
Artificial intelligence played a central role in deal activity. AI-focused companies made up 61.2% of all insurtech deals in Q1, with total investments in this area reaching $710.86 million.
Five reinsurance and insurance investors each made three or more tech-related investments during the quarter, signaling continued interest from established industry players.
Since 2012, total investment in insurtech has exceeded $60 billion. About $10.98 billion of that has gone into auto and motor-focused companies. These include firms that build tools for insurers, as well as those that underwrite auto policies directly as managing general agents (MGAs) or full carriers.
Gallagher Re’s Global Insurtech Report for Q1 2025 also highlighted a rebound in mergers, acquisitions, and strategic partnerships within the sector. There are signs that some insurtech firms may prepare for initial public offerings (IPOs) later in the year.
After a record-setting 2024 for reinsurance and insurance investments, the outlook for insurtech in 2025 appears more stable and positive than in previous years.
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