Gallagher Re’s latest Global Insurtech Report for the second quarter of 2025 outlines current developments in property-focused technologies and the evolving role of artificial intelligence (AI) in the insurance sector.
The report notes that the property insurance market is projected to grow at a compound annual growth rate of more than 8% between 2024 and 2028, according to data from GlobalData. This expected growth comes as the industry continues to face a long-term trend of rising losses.
Q2 2025 marked a significant funding milestone for the Insurtech sector, with a cumulative total of $60 billion raised globally since 2012. Gallagher Re global head of insurtech Dr. Andrew Johnston (pictured above) said that this total reached US$60.8 billion.
“This is a remarkable achievement, and underlines both the transformative impact that insurtech has had on our industry, and the success of so many individual tech firms in attracting capital to support their ambitions,” Johnston said.
Of the $60 billion in total Insurtech investment, approximately $15 billion, or 25%, has been directed toward AI-related technologies. The report states that demand for AI investment remains strong, as venture capital continues to prioritize the sector across both insurance and other industries.
In the previous quarter, global insurtech funding declined 16.7% from the previous quarter to $1.09 billion. This marked the lowest quarterly funding level for property and casualty insurtechs since the first quarter of 2018. The average deal size fell 18.7% to US$12.83 million, while the number of deals dropped 6.2% to 91.
Companies with AI-centered offerings made up 61.2% of total deal value in Q1, pointing to sustained investor focus heading into the second quarter.
Despite the overall funding decline, early-stage insurtechs raised US$259.7 million in Q2, recovering from what had been a nearly five-year low in the prior quarter. The US accounted for an increased share of activity, with its Insurtech deal participation rising 11.7% quarter over quarter to a nine-year high.
AI-centered firms accounted for 57.1% of all insurtech deals during the second quarter. Property-focused insurtechs secured US$191.12 million in funding, tying directly into the report’s broader analysis of how AI is being applied to weather and climate-related insurance solutions.
The report reiterates that AI continues to dominate insurtech deal activity. Across the second quarter, AI-related firms accounted for a majority share of both funding and transaction volume.
This is in line with a broader pattern observed throughout the past several quarters, where investors have consistently backed technologies geared toward automation, data-driven underwriting, and predictive modeling.
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