IA Capital’s Lerner: AI firms can raise at lofty valuations; ‘most’ insurtechs no longer can

Title: IA Capital's Lerner on Insurtech Funding Challenges Amid AI Optimism

In a recent discussion with The Insurer TV at the Insurtech Insights USA event, Andy Lerner, a principal at IA Capital, shed light on the current state of funding for insurtech companies. He noted a significant disparity between funding availability for AI-focused companies and traditional insurtechs.

Funding Landscape for AI Firms vs. Insurtechs

Lerner pointed out that while companies leveraging artificial intelligence are still able to secure funding at high valuations, most insurtech startups are struggling in this area. This trend highlights a shift in investor priorities, indicating that simply being an insurtech is no longer enough to attract substantial investment.

AI as a Basic Requirement

According to Lerner, the integration of AI into business models has become what he describes as "table stakes." In other words, today’s startups must effectively utilize AI technologies to remain competitive. This marks a significant turning point, suggesting that differentiation will require more than just adopting the latest tech trends—it'll require robust, practical applications of AI within their operations.

Implications for the Insurtech Industry

This analysis presents a clear picture for entrepreneurs and investors alike. Startups in the insurtech space may need to refine their value propositions and incorporate AI more deeply into their offerings to stand out in a crowded market. Those lacking a solid AI strategy could find it increasingly difficult to attract investment.

Lerner's comments reflect the ongoing evolution of the insurtech sector and serve as a reminder of the critical importance of innovation in funding dynamics.

Original Source: https://www.tradingview.com/news/reuters.com,2025:newsml_L6N3SK04Z:0-ia-capital-s-lerner-ai-firms-can-raise-at-lofty-valuations-most-insurtechs-no-longer-can/