What's happening
New data from Gallagher Re shows AI-focused insurtechs are now capturing 99% of funding dollars, even as overall deal activity hit a four-year high. Consolidation kept moving too: Gallagher picked up a Canadian digital broker and Mapfre took a near-40% stake in Spanish insurtech Tuio, while AI tools spread deeper into daily operations through Cytora and Octave's new MGA partnership, Gradient AI's rebrand, and Allstate's rollout of its own large language model. A cluster of property and catastrophe stories also landed, from data-center-driven reinsurance demand to diverging residual-market trends in high-risk states.
Why it matters
When almost all new capital chases one category, non-AI insurtechs face a much tougher fundraising path even as headline funding totals look healthy - InRisk Labs' 27 million dollar raise was one of the rare exceptions this cycle. Watch whether incumbents like Mapfre and Gallagher are now buying AI capability outright rather than building it, and whether cat-exposed insurers keep leaning harder on reinsurance and alternative capacity as regional risk keeps diverging.