Q2 global insurtech funding declines 14.4%

Second-quarter global insurtech funding totaled $1.09 billion, off 14.4% from second-quarter 2024, according to a report Thursday from Gallagher Re, the reinsurance business of Arthur J. Gallagher & Co.

Insurtech funding for the second quarter was also down 16.7% from first-quarter 2025 levels.

Funding for property/casualty insurtechs of $362.2 million was down 68% from the first quarter as just two of the 10 largest second-quarter deals went to property/casualty insurtechs, compared with nine of 10 in the first quarter.

Life/health funding, meanwhile, nearly tripled from first quarter to $728.5 million, the highest total since second-quarter 2022.

Second quarter continued the trend of artificial intelligence drawing funding, with 57.1% of second-quarter insurtech deals going to AI-centered companies.

Since the inception of such record keeping in 2012, AI-centered companies have netted some 25% of all insuretech funding, or approximately $15 billion.

“We have seen that on average, companies that identify as AI companies raise about 25% more than non-AI companies,” said Andrew Johnston, global head of insurtech for Gallagher Re.

The Gallagher report said that since records began in 2012, a total of $60.8 billion has been raised by insurtech companies.