Specifically, we will be assessing the several ways in which InsurTechs are pitching to revolutionize this major line of (re) insurance business with AI, the extent to which they have been successful and the expectations for the future.
Of the USD60B-plus that has been invested into InsurTechs since 2012, we estimate that USD10.98B has been invested into auto/motor InsurTech companies. This covers InsurTechs that have developed software and tools for (re)insurers to use, and also InsurTechs that themselves originate auto business as an MGA/carrier.
The report also examines and provides insights, on the performance of the InsurTech market during Q1 of this year. So far 2025 has brought a revived focus on acquisitions and strategic partnerships, with a suggestion that we might observe some IPO activity at some point in the year. It's also worth noting M&A activity is up, plus AI funding is now a significant part of overall InsurTech funding, and with 2024 marking a record high for (re)insurer investing — it looks like the future for InsurTech is certainly brighter than it was 24 months ago.
The points below show a summary of InsurTech funding activity for this most recent quarter.
Key Findings for Q1
- Global InsurTech funding surged 90.2% quarter on quarter to $1.31B
- P&C InsurTechs raised $1.13B in funding over Q1'25, the highest level since Q3'22
- Early-stage InsurTech funding reached a nearly 5-year low in Q1'25
- 61.2% of Q1'25 InsurTech deals went to AI-centered companies ($710.86M)
- 5 (re)insurance investors made 3 or more tech investments in Q1'25