A new report from Gallagher Re on the global state of investment in insurance technology companies says that insurers and reinsurers themselves are increasingly invested in the companies which continue to shape the industry’s future. This, they say, is a clear trend.
“Both in relative and absolute terms, 2024 marked a high point for (re)insurer investment activity, with 150 deals completed. For context, even when total funding was four times higher in 2021, (re)insurers participated in only 107 deals. This trend highlights a growing commitment from those who stand to benefit most from the technology itself,” researchers write in the Gallagher Re Global InsurTech Report.
An era of pragmatism
Since deal funding for insurtech companies first put insurance technology on the map in 2015, a time which included “a lot of undisciplined future-gazing, with some fairly wild predictions of how technology would fundamentally alter our industry,” they say that today is more an era of pragmatism. The COVID-19 pandemic in particular was an unexpected disruption which “intensified demand for tangible business results, profitability and sustainable growth.”
Today, they also say there is a clear trend in play, that is a growing understanding, particularly among incumbent companies, that there is value in supporting the technology providers.
In Canada, the report says there were six insurtech deals made during the first quarter of 2025.
Plug and Play Alberta is one of 11 investors in Ushur, which focuses on customer experience automation. “The company offers a platform designed to automate customer journeys and provide engagement and issue resolution,” they write. The company, founded in 2014, is based in Santa Clara, California.
Closer to home, in Toronto, Ontario, Parasol Platforms has also raised funding to provide artificial intelligence (AI) agents to support insurance brokerages. The company was founded in 2024. The firm’s funding comes from the Techstars London Accelerator.
Healthcare sector solutions
Also in Toronto, technology company League provides healthcare sector solutions, including member portals, clinical care guidance and wellness programs. Founded in 2014, the deal involved a large number of investors, raising more than $311-million (figures in U.S. dollars).
Calgary, Alberta-based OneVest also raised funding in the first quarter of 2025. The company specializes in wealth management software. In total, Allianz Life Ventures invested $36.7-million in the venture.
Intact Financial, meanwhile, invested $30.2-million in Venn Software, a financial technology company providing banking platform services including multi-currency accounts, global money transfers, corporate expense management, and accounting automation. Founded in 2021, the company is based in Toronto.
Finally, Optalitix, involved in underwriting for the cannabis, CBD and hemp industries, has struck a strategic partnership with CannGen Insurance Services to enhance those processes for the company. The company’s modelling and quote platforms are reportedly currently in use across the U.S., Canada and Europe.
