Global InsurTech Report for Q2 2025
The 2025 series of Global InsurTech reports examine the role of Artificial Intelligence (AI) in our industry, exploring its application and use cases in the largest classes of business written (in premium terms). This second report in the 2025 series will focus on property (and its associated weather and climate perils).
Specifically, we will look at how InsurTechs are working with incumbent carriers both to improve the development of property insurance products, and to better understand, predict and even mitigate the perils (chiefly weather events) which drive losses.
According to GlobalData, the property insurance market is projected to grow at a CAGR of over 8% from 2024 to 2028. This predicted growth comes despite a steadily rising loss trend in recent years.
The report also examines and provides insights into the performance of the InsurTech market during Q2 of this year. It's worth noting that we passed a major InsurTech funding milestone in the second quarter of 2025, with a total USD60 billion having been raised since our records began in 2012. This is a remarkable achievement, and underlines both the transformative impact that InsurTech has had on our industry, and the success of so many individual tech firms in attracting capital to support their ambitions.
Of the USD60 billion of InsurTech funding, around USD15 billion (25%) has gone into AI-related technologies. While this is a significant proportion, the requirement for AI investment is unlikely to diminish from here, with the broader venture-capital environment now heavily focused on AI.
The points below show a summary of InsurTech funding activity for this most recent quarter.
Key findings for Q2
- Global InsurTech funding declined 16.7% quarter on quarter to USD1.09B in Q2'25, which also featured the lowest level of funding for P&C InsurTechs since Q1'18
- The average deal size across InsurTech fell 18.7% QoQ to USD12.83M. Deal count decreased by a smaller magnitude than funding, dipping just 6.2% quarter on quarter to 91 in Q2'25
- Early-stage InsurTechs raised USD259.7M in Q2'25, rebounding from the prior quarter's nearly five-year funding low
- US InsurTech deal share increased 11.7% quarter on quarter to reach a nine-year high
- 1% of InsurTech deals went to AI-centered companies in Q2'25
- For the theme of this report, property-focused InsurTechs raised USD191.12M in funding during Q2'25
