By Lewis Nibbelin, Analysis Author, Triple-I
International insurtech funding hit $1.01 billion within the third quarter of 2025, marking three consecutive years of common quarterly funding close to $1.1 billion, in accordance with a current Gallagher Re report. Elevating $751.72 million, A.I.-based insurtechs accounted for nearly 75 p.c of all funding throughout 49 offers, elevating $751.72 million, largely attributed to the industrial insurance coverage trade’s evolving threat profile.
Fewer, larger offers
Although down 7.3 p.c from the earlier quarter, third-quarter outcomes mirrored much less quarterly volatility in comparison with the previous three-year interval, which fluctuated with higher uncertainty round the next common of $2.7 billion. Deal rely additionally dropped to 76 – the bottom complete rely because the second quarter of 2020 – as common deal measurement rose from $12.83 million within the second quarter of 2025 to $15.70 million.
Property/casualty insurers financed eight of the quarter’s 10 largest offers, propelling the trade’s complete third-quarter funding to $690.28 million – a 90.5 p.c improve from its seven-year low within the prior quarter.
Reinsurers led one other dramatic market shift by backing a document sector excessive of 51 tech investments, suggesting “the urge for food for pure enterprise threat is alive and properly” whilst buyers place fewer “huge, high-risk bets” in favor of “a extra balanced method,” stated Andrew Johnston, world head of InsurTech at Gallagher Re.
A.I. takes heart stage
With over 25 p.c of economic traces now bought by means of digital channels, the report outlines how insurers can meet the calls for of adjusting buyer expectations and enterprise practices – notably the digital assortment and storage of buyer information – by leveraging A.I.
By bettering information extraction, sample identification, and fraud detection, A.I. instruments streamline routine decision-making whereas releasing up underwriters’ capability to construct shopper relationships and assess sophisticated, high-value dangers, the examine discovered. On a concrete degree, such effectivity features embrace high-resolution aerial imagery to shortly confirm property damages, dashcams to watch real-time driving behaviors, and wearable IoT options to forestall office accidents, demonstrating the utility of A.I.-powered insurtechs throughout industrial traces.
Efficient integration, nonetheless, transcends easy adoption. Freddie Scarratt, Gallagher Re’s world deputy head of InsurTech, emphasised the enduring challenges of making use of A.I. to legacy administration methods and of an rising expertise hole to bridge information and A.I. literacy experience with conventional underwriting.
Enterprise leaders expressed related issues in a Gallagher Re survey launched earlier this yr, highlighting a abilities scarcity and pervasive moral implications as limitations to A.I. adoption.
Underscoring the trade’s objective to “supercharge” underwriting judgement moderately than substitute it, Scarratt concluded that “essentially the most profitable (re)insurers of the long run will probably be those who mix their experience in relationship administration, advanced deal structuring, and cycle administration with the pace, scale, and analytical energy of A.I.”
Be taught Extra:
JIF 2025: Litigation Developments, Synthetic Intelligence Take Middle Stage
Tech — Particularly A.I. — Is High of Thoughts for International Insurance coverage Executives
