P&C slump drove insurtech funding down 17% in Q2: Gallagher Re

Insurtech Funding Takes a Dip in Q2 2025

According to Gallagher Re's latest global insurtech report, funding for the insurtech sector has seen a significant decline. In the second quarter of 2025, global insurtech funding dropped by 16.7% from the previous quarter, totaling $1.09 billion. This decrease marks the lowest level of investment activity for property and casualty (P&C) insurance since early 2018.

Key Findings

The report highlights that the downturn in insurtech funding is primarily influenced by a slump in P&C investments. Gallagher Re indicates that this is a notable change in the investment landscape, reflecting broader economic challenges and a cautious approach by investors.

Who’s Affected?

This decline can impact various stakeholders within the insurtech ecosystem, including startups looking to secure funding for innovative projects, traditional insurance companies considering partnerships with insurtech firms, and investors who prioritize returns in a fluctuating market. While the funding landscape is shifting, it underscores the need for insurtech companies to adapt and demonstrate sustainable business models as they navigate this period.

A Closer Look

The report serves as a reminder that while the insurtech sector has experienced notable growth in recent years, external factors such as market conditions and investor sentiment can significantly alter the trajectory of funding. Companies may need to recalibrate their strategies to address the current challenges and align with evolving industry demands.

This analysis reflects a moment of introspection for the insurtech community, as stakeholders consider how to move forward amid tightening capital availability.

Original Source: https://www.theinsurer.com/ti/news/pc-slump-drove-insurtech-funding-down-17-in-q2-gallagher-re-2025-08-07/