A new report by ICMIF Supporting Member Gallagher Re found that 74.8% of insurance technology (insurtechs) funding went to AI-centred companies in the third quarter of 2025 (Q3 2025).
The report, which forms part of Gallagher Re’s 2025 series of Global InsurTech series, examines the role of Artificial Intelligence (AI) in the industry, exploring its application and use cases in the largest classes of business written (in premium terms). AI-centred insurtechs raised USD 751.72m in funding across 49 deals in Q3 2025, with the average deal size among AI-centred companies at USD 16.70m.
The report also found that AI tools are helping to accelerate underwriting and claims processes, offering personalised coverage, detecting fraud, and helping to precent or mitigate losses.
Key findings from the Q3 report are:
• Global InsurTech funding was USD 1.01 billion in Q3 2025
• InsurTech saw just 76 deals in Q3 2025, the lowest count since Q2 2020
• Early-stage InsurTech funding ticked up 6.8% quarter on quarter
• 74.8% of Q3 2025 InsurTech funding went to AI-centered companies
• Commercial-focused InsurTechs raised USD 470.67 million in funding over Q3’25
• (Re)insurance companies backed 51 tech investments in Q3’25 — a record high
Read the full report here.
