Full Capacity: Insurtech’s new frontier

August 9 2025 by

Welcome to Full Capacity, a weekly briefing on all the most important developments of the past week with a personal take on the news from our editor-in-chief, Mithun Varkey, delivered to your inbox every Saturday.  

Growing footprint. Howden Re just secured a full reinsurance broking license from the Dubai Financial Services Authority, a strategic move that formalises its growing presence in the region. The firm plans to leverage this license to expand its treaty, facultative, and MGA reinsurance offerings across the Middle East, Africa, and South Asia. 

M&A update. While rivals scramble for India’s booming market, UIB just cashed out – selling its decade-old JV stake to the private equity-backed Edme. Smart exit or missed opportunity? Hard to say, but it’s a bold move when everyone else is doubling down.  

Meanwhile, Gallagher’s still hungry in Australia. This week, the acquisitive US broker has snapped up agri-specialist Mack Insurance in New South Wales.  

Nat cat brief. Torrential rains have left insurers sweating across Asia. Hong Kong’s fourth black rainstorm this year flooded roads, triggered landslides, and disrupted flights. Meanwhile, with Shenzhen smashed by record rainfall and Guangdong’s airport cancelling hundreds of flights, the bill is mounting. 

Meanwhile, officials in northern China, including Beijing, evacuated 82,000 over flood fears after a week of record rainfalls battered the region, while a Himalayan village in India faced a deadly mudslide, that may likely have been caused by a glacial lake outburst.  

Losses from the extreme rain and flooding in Beijing last month are expected to be substantial, with increased investment in flood resilience and infrastructure anticipated. 

The events past week lend credence to Swiss Re’s warning that this could be yet another year of US$150 billion in losses. The Atlantic hurricane season has not yet started, and natural catastrophe losses are typically higher in the second half of the year.  

Earning the stripes. Australian MGA Blue Zebra is pivoting to more complex commercial lines, including liability, marine, PI, and management liability. The insurtech has secured fresh capacity from QBE, Chubb, AIG, and HDI Global Specialty in Australia, following its recent split with Youi after a five-year partnership.

But its ambitions don’t stop there. The company is also preparing to roll out its proprietary underwriting platform, Blue Leopard, to international markets.

Insuretech’s new frontier

Gallagher Re’s latest report on insurtech funding that was published this week reads like a compelling narrative of evolution within (re)insurance tech.  

The once-thriving days of insurtech exuberance seem to be fading, and the market is now demanding more than just a shiny label from these tech-savvy contenders. 

The numbers are telling: global insurtech funding plummeted by 16.7% quarter-on-quarter, landing at US$1.09 billion in Q2 2025.  

Property and casualty insurtechs raised a mere US$362.22 million – an alarming low not seen since Q1 2018, marking a staggering 68% decline from the previous quarter.  

Meanwhile, life insurtechs surprisingly tripled their funding, soaring to US$728.47 million. It’s clear the landscape is shifting. 

But amidst this funding gloom, there is a number that sticks out: a remarkable 57.1% of Q2 2025 insurtech deals were funnelled into AI-focused companies.  

Clearly AI is the flavour of the season and not without good reason. AI may just be revolutionising how the industry tackles property perils and provides new tools to mitigate losses, be it wildfires, hurricanes or earthquakes 

Take wildfires, for instance. AI doesn’t merely predict risk; it drills down to the property level, analysing factors such as roof materials and bush density.  

When disaster strikes, AI startups harness satellites and drones to deliver real-time data, allowing insurers to navigate the chaos and expedite claims like never before. 

Then there are hurricanes. AI’s cracking the code on rapid intensification, turning erratic storm behaviour into actionable forecasts. It’s even reshaping parametric insurance, making triggers smarter and payouts swifter. 

As for earthquakes. Forget broad-stroke models. AI digs into soil composition and building integrity to provide unprecedented precision.  

In fact, AI-enhanced risk modelling could streamline cat bond deals, as noted by the World Bank, enabling quicker market access and expanded capacity. 

Of course, we must temper our enthusiasm: AI isn’t a panacea. It requires significant investment, diligent oversight, and collaborative effort. 

Yet for reinsurers willing to embrace this technology, the rewards could be immense – sharper pricing, smarter capital allocation, and a more resilient market amidst the climate chaos. 

It’s clear that while the insurtech funding landscape may be shifting, the future is ripe with opportunity for those ready to bet on AI.  

The promise of insurtechs reshaping (re)insurance isn’t dead; it’s merely evolving. 

People moves

In notable moves this week, Everest has promoted James McPartland to its head of property for Asia. 

Aon announced three key moves in the region this week. In Singapore, the broker tapped Miller’s Mandy Phan as head of production for Asia, while in India, Aon brought on board Tata AIG veteran Sushan Sarin in a senior strategy role. It also hired veteran broker Sean Green in New Zealand. 

Willis has chosen Euler Hermes and Marsh alumni Seckin Atilgan to drive the growth of its trade credit insurance business in Asia Pacific. 

To keep up with the latest appointments across the region, don’t miss our weekly people move roundup.  

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