Happy hump day, !

This week, we delve into five key 2025 trends in Insurtech, from AI & ML to blockchain and advanced data analytics.

There is a power shift in insurtech, with Silicon Valley’s share dropping from 20% to 10% and New York gaining a lot of traction.

In emerging markets, there is a concerning insurance protection gap with countries in the Middle East, Africa and Asia dealing with the most significant shortfalls.

— Insurance 150 Team

Table of Contents

• Data Dive

• Trend of the Week

• Market Movers

• Insurtech Corner

• Deal of the Week

• Macroeconomics

• Interesting Articles

• Tweet of the Week

Insurtech’s Power Grab

The insurance industry’s tech overhaul isn’t on the horizon—it’s already steamrolling legacy systems. In 2025, five key trends will define who thrives and who fades into obsolescence:

• AI & Machine Learning: Predicting claims before they happen, flagging fraud in real-time, and underwriting at lightning speed. The AI insurance market is set to explode from $8B in 2024 to $141B by 2034.

• Blockchain: Say goodbye to fraudulent claims and paperwork purgatory. Smart contracts will auto-trigger payments, cutting costs and disputes—pushing blockchain insurance from $3.5B to $48B by 2030.

• IoT: Connected devices are redefining risk assessment. Telematics in cars, wearables for health tracking, and smart homes mean insurers know more about you than your best friend.

• Embedded Insurance: No more stand-alone policy hunting—coverage will be seamlessly baked into checkout screens, ride-share apps, and subscriptions.

• Advanced Data Analytics: Social media, IoT, and online behavior will fuel hyper-personalized policies. Predictive analytics will sharpen pricing, detect fraud, and improve segmentation.

The future of insurance is being rewritten in real-time—adapt or be left behind​.

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Trend of the Week: The Growing Protection Gap in Emerging Markets

Natural catastrophes cost the global economy $357 billion in 2023, yet a staggering 65% of those losses—$234 billion—were uninsured. This widening protection gap is most severe in emerging markets, where insurance penetration remains low despite rising climate and disaster risks. The Middle East (97%), Africa (96%), and Asia (92%) are facing the most significant shortfalls, leaving businesses and governments exposed to economic shocks.

In contrast, developed markets like Europe (75%) and Oceania (47%) show relatively better coverage, while the U.S. leads with a 32% protection gap, thanks to higher private and public sector participation. However, even in mature markets, there’s growing pressure to bridge gaps, particularly as climate-driven disasters become more frequent and severe. The data underscores an urgent need for expanded insurance solutions, reinsurance capacity, and innovative risk-sharing mechanisms.

For insurers and investors, this protection gap presents both a challenge and an opportunity. On one hand, underinsurance in emerging markets signals vulnerability, but on the other, it highlights a massive growth market for specialty insurers, parametric solutions, and alternative risk transfer mechanisms. As global economic volatility increases, expect insurers to ramp up product innovation, regulatory collaboration, and strategic partnerships to close these gaps—before the next billion-dollar disaster strikes

Insurtech’s Power Shift: Goodbye Silicon Valley?

Silicon Valley’s share of global insurtech funding just got cut in half, dropping from 20% to 10% YoY. New York, on the other hand, is thriving—its funding share more than doubled to 15%, making it the new insurtech capital.

The bigger question: With AI driving record investment in the Valley, why is insurtech getting left behind? If the trend continues, insurance-focused AI breakthroughs may come from elsewhere. Silicon Valley might want to rethink its bets.

Deal of the Week: Gallagher Expands Retirement Consulting with Agilis Acquisition

Arthur J. Gallagher & Co. continues its M&A streak, acquiring Agilis Partners LLC, a retirement plan and investment consulting firm with offices in Boston, New York, and Denver. While terms weren’t disclosed, the deal bolsters Gallagher’s financial and retirement services division, adding customized risk management expertise to its growing portfolio.

Agilis, known for its client-first approach and strong growth trajectory, will operate under Gallagher’s Global Financial & Retirement Services leadership. CEO J. Patrick Gallagher, Jr., highlighted Agilis’s consultative expertise as a key value add, strengthening Gallagher’s ability to provide tailored solutions for institutional clients navigating complex investment strategies.

This acquisition is part of Gallagher’s broader expansion strategy, enhancing its risk management and financial consulting capabilities in a rapidly evolving market. With 130+ countries in its operational footprint, Gallagher continues to scale its advisory services, reinforcing its position as a leading force in the insurance, brokerage, and financial consulting sectors.

The Monetary Base: A Post-2008 Rollercoaster

For decades, the U.S. monetary base moved at a steady crawl—Vietnam? Nixon Shock? Barely a bump. Then came 2008, and the Federal Reserve hit the money printer like it was a broken arcade game.

The financial crisis triggered an unprecedented liquidity injection, ballooning the monetary base from ~$850 billion to nearly $2.1 trillion in just a few years. That was just the beginning. The response to COVID-19? Another vertical spike, pushing the total past $6 trillion.

What’s striking isn’t just the massive expansions but the instability since 2008. Gone are the days of smooth growth—now, the monetary base jerks up and down like a stock chart of a meme coin. The post-2008 era has cemented a new normal: when markets wobble, the Fed steps in with the firehose. The real question? What happens when it stops.

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