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Beyond the buzz: turning promise into results
The AI explosion has ramped up the pressure on the world’s top insurtechs to deliver and push the boundaries even further.
The companies meeting these exacting demands are recognized by Insurance Business as the 5-Star Technology and Software Providers 2025 and were determined after the global broking network nominated and ranked their standout performers.
Their solutions drive business value, from faster claims processing to smarter underwriting, enable digital distribution models, and provide insurer-specific understanding, while introducing AI where it is most effective.
“Although AI is essentially new to insurance, boards and C-suites have high expectations to take the lead,” says Alan Demers, president of InsurTech Consulting. “Those expectations are buoyed with caution for the possibilities of what could go wrong. It’s a true mix of fear and exciting opportunities.”
Proving the point, more than 60 percent of all insurtech deals in early 2025 involved AI, reflecting its rapid rise in underwriting, claims, customer service, and risk modelling, according to the Q1 2025 Global InsurTech Report.
Other key data points reinforce the momentum:
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Global insurtech funding surged 90.2 percent quarter over quarter, reaching US$1.31 billion, the highest level since late 2022
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Three mega-rounds over US$100 million were recorded for P&C-focused firms: Quantexa (US$175 million), Openly (US$123 million), and Instabase (US$100 million)
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AI-led insurtechs raised a combined US$710.86 million across 60 deals, with an average size of nearly US$ 14 million
For many insurers, the hype has outpaced practical understanding, but that’s changing. As George Shelton, head of venturing at Alchemy Crew Ventures, explains, “AI, and especially generative AI, has raised the bar in terms of what we expect from insurance software.”
He describes the sector as deeply complex and data-dependent, having historically lagged behind other industries in innovation. That slow pace now leaves room to move.
“There is plenty of low-hanging fruit,” Shelton says. “But we’re a lot less forgiving of AI than we are of our human counterparts, especially given the wide variety of so-called solutions flooding the market.”
And he also explains that the top insurtechs don’t lose sight of the end goal. “Insurers are grappling with a perfect storm of significant challenges, many of which are increasingly complex and potentially very disruptive,” Shelton says. “The goal is to help insurers become more agile, resilient, and customer-centric.”
Separating value from marketing spin
AI has become the defining talking point of the tech space, but insurance leaders are wary of inflated promises and one-size-fits-all platforms.
“Nearly every solution provider has ‘AI’ in their URL, somewhere on their websites and marketing collateral,” says Demers. “This makes it difficult to assess and distinguish among players, never mind attributing real cost-benefit analysis.”
He warns that while generative and agentic AI are showing potential, many carriers are still experimenting and struggling to find solutions tailored to…