Property and casualty insurtechs raise $1.13b in Q1 2025

Since 2012, over $60b has been invested in insurtech companies.

In the first quarter (Q1 2025), global insurtech funding rose 90.2% quarter-on-quarter to $1.31b. Property and casualty insurtechs raised $1.13b— the highest since Q3 2022, reported Gallagher Re.  

However, early-stage funding hit a near five-year low. Companies centered on AI accounted for 61.2% of all insurtech deals, totaling $710.86m. 

Five (re)insurance investors each made three or more technology investments during the quarter.

Since 2012, over $60b has been invested in insurtech companies, with approximately $10.98b directed toward auto/motor-focused insurtechs.

This figure includes firms developing software and tools for (re)insurers, as well as those originating auto insurance business directly as MGAs or carriers.

The latest “Global insurtech Report for Q1 2025” report also provides an overview of insurtech market performance during the first quarter of 2025. 

There has been a notable resurgence in acquisitions and strategic partnerships. Some indicators suggest potential IPO activity later this year. 

Mergers and acquisitions activity has increased, and AI now represents a significant portion of insurtech investment. 

With 2024 marking a record year for (re)insurer investment into the sector, current conditions point to a more stable and optimistic outlook compared to two years ago.