Insurtech: A perfect hub for innovation
Bermuda’s innovation ecosystem is expanding as global insurtech investment rebounds, with AI capturing a growing share of funding and deal activity.
Technology continues to reshape every part of the insurance value chain, from underwriting and claims to capital management and customer engagement. Insurtech companies, in particular, develop solutions that can streamline underwriting, claims handling, risk assessment, customer engagement and data analytics, helping insurers operate more efficiently while creating new products and services. Many work in partnership with established insurers and reinsurers, combining technological innovation with traditional insurance expertise.
Bermuda has sought to support this evolution through dedicated innovation frameworks, regulatory sandboxes and licensing regimes designed to encourage new insurance business models while maintaining regulatory oversight.
The following data explores Bermuda’s insurance innovation ecosystem alongside broader global insurtech investment trends.
Bermuda continues to develop its insurance innovation ecosystem through a combination of regulatory frameworks, dedicated licensing regimes and innovation programmes designed to support emerging insurance business models. The number of active entities within the insurance innovation registry has continued to grow, rising from four in 2021 to 16 in 2025, illustrating the gradual expansion of the jurisdiction’s regulated innovation environment.
The wider innovation ecosystem also continues to evolve. At the end of 2024, Bermuda’s combined digital asset business and insurance innovation registries comprised 50 licensed companies, including 36 digital asset business licence holders and 14 businesses operating under the insurance innovation framework, as reported by the Bermuda government. By 2025, three organisations also held both insurance innovation and digital asset licences, highlighting the increasing convergence between insurance and digital asset technologies.
Bermuda’s insurtech sandbox has also continued to expand. Annual intake more than doubled between 2021 and 2025, while the number of companies graduating from the programme increased from two to six over the same period. The figures reflect continued participation in Bermuda’s regulatory pathway for innovative insurance businesses.
Globally, insurtech investment has begun to recover following the sharp decline experienced after the record funding levels of 2021. Total funding increased to just over $5 bn in 2025, up from approximately $4.3 bn in 2024, although it remained well below the levels recorded earlier in the decade.
The sharp fall in funding from the 2021 peak reflected a broader reset across global venture capital markets. As interest rates rose and financing conditions tightened, investors became more selective, placing greater emphasis on sustainable growth and clear paths to profitability.
As a result, deal activity followed a similar pattern. A total of 366 global insurtech transactions were completed during 2025, representing an increase on 2024 but remaining below the volumes seen between 2021 and 2023. Property and casualty businesses continued to account for the majority of transactions, reflecting the continued pace of innovation across commercial and personal lines insurance.
One of the most notable developments is the growing concentration of investment in AI. According to Gallagher Re, AI-focused companies attracted 95.2% of global insurtech funding during the first quarter of 2026, while the average insurtech transaction reached $23.23 million. The figures point to a market increasingly focused on technologies that enhance underwriting, claims, analytics and operational efficiency.
The data illustrates two complementary trends: Bermuda continues to strengthen its regulated innovation ecosystem through licensing and sandbox initiatives, while globally, insurtech investment is increasingly being directed towards AI-enabled businesses. Together, these developments underline the growing role of technology in shaping the future of insurance.
*Figures displayed are the latest available at the time of press.
For more news on Bermuda Risk Review 2026, click here.
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