According to a report from Gallagher Re, global funding for InsurTech reached $1.01 billion in the third quarter of 2025. This reflects a slight decline of 7.3% compared to the $1.09 billion raised in the previous quarter.
The report highlights a trend where AI-focused InsurTechs are leading the funding landscape. This indicates a growing confidence in technology-driven solutions within the insurance sector, despite the overall drop in funding.
While the decrease might seem concerning at first glance, it’s essential to view it within the larger context of investment trends in the insurance industry. Funding amounts often fluctuate based on market conditions and investor sentiment.
This news is significant for various stakeholders in the insurance sector, including InsurTech startups, traditional insurers looking to innovate, and investors seeking opportunities in emerging technologies. Those focusing on AI solutions are likely to see continued interest, reflecting broader trends in digital transformation.
As the industry evolves, it will be interesting to monitor how funding trends continue to shift. The growth of AI-centred InsurTechs suggests that innovation will maintain a critical role in attracting investment, even amid broader economic uncertainties.
In summary, while the quarter showed a slight decline in overall funding, the focus on technology-driven insurance solutions continues to pave the way for future investments.
Original Source: https://www.reinsurancene.ws/ai-centred-insurtechs-dominate-as-global-funding-hits-1-01bn-in-q3-gallagher-re/