InsurTech Investment Hits $60B Milestone But Pales AI Figures

AI’s Growing Influence in Insurance

Artificial intelligence (AI) is making waves in the insurance sector, and Gallagher Re’s global head of InsurTech, Andrew Johnston, is urging industry professionals to take notice. In the company’s latest Global InsurTech Report, Johnston highlighted the importance of understanding how this technology is transforming the landscape of reinsurance.

Current Investment Trends

According to the report, InsurTech investment has reached a significant milestone, hitting the $60 billion mark. Despite this impressive figure, Johnston pointed out that the level of investment in AI-related initiatives appears to fall short when compared to overall InsurTech spending. This suggests that while companies are investing in technology, they may still be hesitant about fully embracing AI.

Addressing Industry Skepticism

Johnston acknowledged a prevalent skepticism within reinsurance circles regarding the potential impact of AI. Many industry insiders have yet to realize its transformative capabilities. However, as AI technology becomes more entrenched in everyday business practices, its benefits are becoming increasingly evident.

Who Will Be Affected?

The implications of AI in insurance are broad, potentially affecting everything from underwriting and claims processing to customer service and risk assessment. As companies begin to integrate AI tools, those who adjust and adapt could gain a competitive edge in the market.

Conclusion

The message from Gallagher Re is clear: while there’s still some hesitation about AI’s role in reinsurance, ignoring this trend could leave companies behind. It’s an evolving landscape that demands attention and adaptation.

Original Source: https://www.carriermanagement.com/news/2025/08/07/278223.htm