Almost $61bn has been raised and invested in InsurTechs since 2012: Gallagher Re

As per a new report from reinsurance broker Gallagher Re, around $60.8 billion has been raised and invested in InsurTech firms since its records began in 2012, with around 25% directed toward AI-focused companies.

Report author and Gallagher Re’s Global Head of InsurTech, Andrew Johnston, noted that while $60 billion represents substantial capital, it is dwarfed by the amount of investment being deployed into artificial intelligence (AI) more broadly.

Johnston commented, “Our industry is undoubtedly committing to AI, but it should increase its focus, if anything.

“It is incumbent upon InsurTechs, AI companies and our industry to utilise and showcase the best use-cases of this technology, if we are to remain relevant to the society we support and protect.

“There remains some scepticism in re/insurance of just how impactful AI could be, but it is becoming clearer that this is a once-in-a-generation technology that is ignored at our peril.”

As per the new report, it took around five years for the industry to raise its first $10 billion, with the second $10 billion following just two years later. That total doubled again to $40 billion by 2021, when InsurTech reached its funding peak.

While an additional $10 billion was raised in 2021–2022, it reportedly took another three and a half years to reach the $60 billion total, as the market entered a period of conservatism between 2022 and now.

Elsewhere in the report, Gallagher Re revealed that global InsurTech funding actually declined 16.7% quarter on quarter to $1.09 billion in Q2 of 2025.

Property & Casualty InsurTechs are said to have raised $362.22 million in funding during the three months, the lowest level since Q1 of 2018.

Meanwhile, Life & Health InsurTech funding nearly tripled quarter on quarter, surging to $728.47 million in Q2 of 2025.

Global Deputy Head of InsurTech, Freddie Scarratt, commented, “In the years to come, the adoption of AI will become a significant competitive differentiator for property reinsurers.

“Those that effectively integrate it into their core processes — from risk assessment and pricing to claims management and capital allocation — will gain an edge in a challenging market.

“And as the reinsurance industry evolves to better manage the increasing threat from catastrophes, this will ultimately contribute to a more stable market, capable of supporting communities and economies in the face of adversity.

“The journey into AI’s frontier is not just about technological adoption; it’s about reshaping the future of risk transfer itself.”