Gallagher Re Report Examines AI's Impact on LAH

Gallagher Re's Global InsurTech Report: Q4—Life, Accident and Health Insurance analyzes how artificial intelligence (AI) is reshaping the life, accident, and health (LAH) segment while tracking InsurTech investment trends through the end of 2025. The February 2026 report concludes the firm's 2025 series examining the four largest insurance business lines and marks its first dedicated focus on LAH, a class that represents a significant share of global gross written premium.

The report outlines how AI is being deployed across underwriting, claims, distribution, and in-force management within LAH, per the report. Gallagher Re examines both InsurTech firms collaborating with incumbent insurers to enhance product development and risk assessment, as well as standalone technology providers building independent solutions for the LAH market.

Gallagher Re identifies biometrics derived from wearable devices, electronic health records, and molecular mapping and genomics as three areas where AI-enabled InsurTech is gaining traction in LAH, according to the report. Data from wearables and smartphones, electronic health record platforms, and genomic analysis are being incorporated into underwriting and risk classification models, enabling more granular risk assessment and pricing.

The report also details funding activity across the global InsurTech market, noting that total investment rose 19.5 percent year over year to $5.08 billion in 2025, the first annual increase since 2021, according to Gallagher Re. Fourth-quarter funding reached $1.68 billion, up 66.8 percent from $1.01 billion in the third quarter of 2025.

Property and casualty InsurTech funding increased 34.9 percent year over year to $3.49 billion in 2025, while life and health funding declined 4.6 percent to $1.59 billion, per the report. Even so, LAH-focused InsurTechs have raised a cumulative $25.15 billion since 2012, representing approximately 39 percent of the more than $63 billion invested in InsurTech overall.

AI-centered companies accounted for 77.9 percent of fourth-quarter 2025 InsurTech funding, raising $1.31 billion across 66 deals, according to Gallagher Re. For the full year, AI-focused InsurTechs secured $3.35 billion across 227 deals, representing 66 percent of funding and 62 percent of total deals.

The report notes that 2025 saw 162 venture investments in technology by (re)insurance companies, a record high, per Gallagher Re. At the same time, more than 100 InsurTechs raised funding in the fourth quarter alone, with deal count rising 34.2 percent quarter over quarter to 102 and average deal size increasing 20.0 percent to $18.84 million.

Geographically, the United States expanded its dominance in InsurTech deal share, rising to 55.74 percent in 2025, up 5.16 percentage points from 2024, according to the report. Gallagher Re estimates there are approximately 671 active LAH InsurTech companies globally that have raised capital, with the US accounting for roughly 338 of them.

Across LAH operations, automation, data entry and classification, and chatbot technologies are cited as the AI tools with the most immediate impact, particularly in claims processing and fraud detection, per Gallagher Re. The report concludes that while AI investment has surged, insurers must assess how efficiency gains translate into long-term productivity and strategic outcomes.