P&C drives insurtech funding rebound in Q1: Gallagher Re

By Nanveeta Nandan, Scott Vincent

May 6 - (The Insurer) - Global insurtech funding rose by 90.2% quarter on quarter to $1.31 billion during the first three months of 2025 boosted by a surge in P&C investments, Gallagher Re said in its latest report on the sector on Wednesday.

P&C insurtechs attracted $1.13 billion of funding during the quarter, the highest quarterly P&C total since the third quarter of 2022.

In contrast, funding for early-stage Insurtechs fell to a five-year low, while life and health funding declined 34.6% quarter on quarter to $183.14 million.

The report tracked 97 insurtech transactions during the quarter, with nine of the 10 largest deals involving P&C companies.

P&C insurtech funding rose 175.8% quarter on quarter, up from $408.4 million in the fourth quarter of 2024.

Three $100 million plus megarounds took place involving P&C insurtechs during the first quarter of 2025, with Quantexa the largest raise at $175 million, followed by Openly ($123 million) and Instabase ($100 million).

Average deal size was up 42.1% quarter on quarter to $15.8 million, driven by the increase in business-to-business P&C insurtech transactions from 26 to 43.

Auto-focused companies accounted for 27 of the 97 deals during the quarter. These include Wefox’s $83 million and Nirvana’s $80 million fundraises, which are both within the five largest of Q1.

Gallagher Re said auto-focused insurtechs have now raised $13.13 billion across 633 deals since 2012.

More than three-fifths of deals (61.2%) went to AI-centred companies, which had an average deal size of $13.9 million.

Among the 60 AI-centered deals, 33 went to early-stage companies, including seed-stage startups.

(Re)insurers made 45 insurtech investments during the quarter, of which 31% were in early-stage companies and 60% were for U.S.-based companies.