For obvious reasons, insurance-related technology isn't exactly one of the sexiest investment areas for VCs, which might explain why funding and deal count are both down this year, per a review of Crunchbase data. But insurance impacts everyone in one way or another, and the sector is also one of the areas that shows great promise for artificial intelligence. Indeed, many of the venture deals that have gone into the sector this year have been around AI and automation. Funded insurtech startups are using AI for functions such as streamlining underwriting, automating claims processing, improving risk assessment, and reducing manual work. The broad trend: Even before the pandemic-fueled funding peaks, insurtech startups received more than double the amount of venture funding in 2019 than they have in more recent years. While investors haven't given up on insurtech, funding to startups in the space is down in 2025 and deal count is at a multiyear record low. The numbers: So far in 2025,...
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