’There remains some scepticism in (re)insurance of just how impactful AI could be, but it is becoming clearer that this is a once in a generation technology,’ says head
More than £45bn ($60bn) has been raised and invested globally into insurtech firms since 2012, according to a new report released by global reinsurance broker Gallagher Re.
The Q2 2025 edition of the firm’s Insurtech quarterly report also revealed a recent surge in investment in artificial intelligence (AI) based insurtechs, with some £11bn ($15bn) of the total figure having been directed towards AI-focused propositions.
Moreover, some 57.1% of insurtech funding attained in the latest quarter was awarded to AI-centred companies.
However, according to report author and Gallagher Re’s global head of insurtech Andrew Johnson, this figure doesn’t go far enough.
He explained: “It is incumbent upon insurtechs, AI companies and our industry to utilise and showcase the best use-cases of this technology, if we are to remain relevant to the society we support and protect.
”There remains some scepticism in (re)insurance of just how impactful AI could be, but it is becoming clearer that this is a once in a generation technology that is ignored at our peril.”
UK investment
The UK saw the third highest rates of insurtech investment in Q2 2025, seeing a total of 6% of global transactions, placing behind only the US and France in terms of transaction counts. Since 2012, the UK trails only the US in terms of insurtech investment.
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Freddie Scarratt, global deputy head of insurtech at Gallagher Re, said: “In the years to come, the adoption of AI will become a significant competitive differentiator for property reinsurers. Those that effectively integrate it into their core processes – from risk assessment and pricing to claims management and capital allocation – will gain an edge in a challenging market.
“And as the reinsurance industry evolves to better manage the increasing threat from catastrophes, this will ultimately contribute to a more stable market, capable of supporting communities and economies in the face of adversity. The journey into AI’s frontier is not just about technological adoption, it’s about reshaping the future of risk transfer itself.”
He graduated in 2017 from the University of Manchester with a degree in Geology. He spent the first part of his career working in consulting and tech, spending time at Citibank as a data analyst, before working as an analytics engineer with clients in the retail, technology, manufacturing and financial services sectors.View full Profile
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