InsurTech/M&A/Financeđź’°/Collaboration
Insurtech VC Funding Reportedly Surges 65% In Q1 2025, Driven By Underwriting, Claims Automation
The insurtech sector is experiencing a resurgence, with venture capital (VC) funding soaring 65% QoQ in Q1 2025, according to a PitchBook report.
The insurtech sector is experiencing a robust resurgence, with venture capital (VC) funding soaring 65% quarter-over-quarter (QoQ) in Q1 2025, according to a recent PitchBook report.
The PitchBook report also mentioned that this significant uptick in deal value reflects renewed investor enthusiasm for startups revolutionizing core insurance operations, particularly in underwriting and claims automation.
As the industry grapples with rising operational costs and evolving consumer expectations, investors are betting big on technologies like AI-driven risk analytics, embedded distribution, and personalized insurance plans to reshape the market.
Top insurtech funding rounds, May 2025 | Digital Insurance
Enjoy complimentary access to top ideas and insights — selected by our editors.
There were about 48 funding events in the insurtech sector between May 1 and May 31, 2025, according to a review by Digital Insurance. What follows is a selection of these, focusing on those in the insurtech and property & casualty sectors that are part of the venture-capital financing model. (Other funding events, such as private-equity infusions, are included in the overall count.)
A portion of the data was sourced from Crunchbase. Other information, including quotes from investing VCs, comes from company announcements. For our previous edition, which covered the month of April, click here.
These updates will continue monthly.
Nexar and Flywheel Team Up to Modernize Taxis with Connected Vehicle Technology
Nexar, a leader in AI-powered mobility solutions, today announced a groundbreaking collaboration with Flywheel, the nation's leading e-hail platform for the taxi industry. This alliance will deploy Nexar's cutting-edge connected dash cameras across thousands of taxis in the United States, delivering real-time insights and helping fleets improve safety, reduce insurance costs, and elevate the rider experience.
Through this integration, Flywheel-enabled taxis will be equipped with Nexar's advanced AI technology, transforming each vehicle into a data-driven, intelligent asset. Features such as automated crash detection, real-time driver behavior insights, and proactive safety alerts will empower taxi drivers and fleet operators with tools previously available only to large-scale rideshare platforms.
"This alliance is about more than just cameras in taxis," said Zach Greenberger, CEO of Nexar. "Together with Flywheel, we're equipping an iconic mode of transportation with next-generation technology. This is a leap forward in making taxis not only safer and smarter, but also contributors to a larger vision of better managed insurance costs for drivers and fleets."
Kin Deploys ZestyAI to Support California Wildfire Risk Assessment | Insurance Innovation Reporter
Kin Insurance uses ZestyAI’s Z-FIRE model to evaluate property-level wildfire exposure and expand coverage access in high-risk areas.
Kin Insurance (Chicago), a direct-to-consumer home insurance provider focused on catastrophe-exposed markets, has deployed ZestyAI’s (Oakland, California) Z-FIRE wildfire risk model to assess property-level wildfire exposure as part of its expansion into California.
The integration of Z-FIRE was completed in 10 days, enabling Kin to advance its market entry. The deployment supports Kin’s strategy to improve insurance availability in California, where coverage options have declined due to the rising frequency of natural disasters and insurer exits.
Z-FIRE applies machine learning to analyze detailed property attributes—including defensible space, building materials, topography, and vegetation—to predict wildfire susceptibility and resilience. This approach allows insurers to more accurately underwrite risk and identify insurable properties in high-risk areas.
News
Driven Brands starts pricing guidelines for calibration and scanning operations for Farmers GRP July 1 | Repairer Driven News
[Ed. Note: Wild West no more! Slowly but surely auto insurers are teaming up with diagnostics providers and MSOs to introduce/rationalize diagnostics pricing for collision repairs on top of their DRP programs. Coupled with more OEM guidelines, certification programs and recommended / mandatory digital parts procurement platforms, the near future of more standardized collision repair pricing and process is coming into focus.]
Driven Brands has outlined calibration and scanning pricing guidelines for a partnership with the Farmers Guaranteed Repair Program (GRP) to start July 1. The guidelines have brought confusion to some of the collision repair industry after a document circulated titled “Farmers ADAS Calibration & Scanning Pricing.”
It stated the price structure reflects the “final allowable cost” for estimate entry.
Driven Brands sent out an amended document last week titled, “ADAS Calibration & Scanning Pricing Guidance for Farmers GRP Partnership.” This document does not state that a price range given for 11 operations is a “final allowable cost.”
“We recently informed our network about non-mandatory pricing guidance for ADAS calibration and scanning services, effective July 1,” said Arlo Johnson, Driven Brands senior vice president, in an email to Repairer Driven News. “We apologize for any confusion caused by the initial communication, but the pricing framework is a voluntary, self-managed effort to support competitive alignment in the market and is not a mandated rate structure from Farmers.”
Telematics, Driving & Insurance
Zuno launches India’s first crash detection-enabled insurance - Car News
Zuno Smart Drive requires no special setup or device. It works directly through the Zuno app.
Zuno General Insurance has introduced India’s first real-time crash detection feature to its flagship Zuno Smart Drive car insurance. This enhancement provides instant roadside support and accelerates claims processing.
With this new addition, the advanced mobile telematics system embedded in the Zuno app detects crashes automatically and alerts the Zuno support team triggering real-time roadside assistance, initiating a claims process and aid without requiring customer initiation. This saves critical time during emergencies—ensuring help arrives when it is needed most.
AI in Insurance
MAPFRE USA Builds Strategic Edge Through Data and AI
MAPFRE USA (Webster, Mass.), part of the MAPFRE Group (Madrid), is undertaking a far-reaching transformation led by José Luis Bernal Zúñiga, Chief Data, Digital, and Innovation Officer and other senior executives. As a member of the company’s management committee, Bernal plays a pivotal role in aligning technological change with corporate strategy.
Bernal began his tenure focused on digital business development—specifically direct and digitally sourced distribution—but his role quickly expanded.
“It is not a digital transformation program,” he says. “It is a digital business development effort.” As the insurer recognized the foundational role of data, he launched a transversal data initiative designed to move the company beyond data silos and toward enterprise-wide data-driven thinking. “We don’t want to set up a data team,” he explains. “We want to raise the IQ of the organization.”
Sure launches insurance industry's first Model Context Protocol (MCP) capability, enabling AI agents to quote, bind, and service policies
Sure, the insurance technology leader that unlocks the potential of digital insurance, today announced the launch of the insurance industry's first Model Context Protocol (MCP) capability that enables AI agents to autonomously quote, bind, and service insurance policies.
The first of its kind infrastructure is a seismic shift in how insurance operates globally, with Sure providing the technology rails for artificial intelligence to seamlessly interact with insurance systems end-to-end.
Sure, the insurance technology leader that unlocks the potential of digital insurance, today announced the launch of the insurance industry's first Model Context Protocol (MCP) capability that enables AI agents to autonomously quote, bind, and service insurance policies. The first of its kind infrastructure is a seismic shift in how insurance operates globally, with Sure providing the technology rails for artificial intelligence to seamlessly interact with insurance systems end-to-end.
"We're ushering in a new era in insurance technology," said Wayne Slavin, CEO of Sure. "By integrating MCP capabilities into insurance infrastructure, we're not just improving existing processes – we're fundamentally reimagining how insurance can be delivered. AI agents can now handle the entire insurance lifecycle autonomously, from initial quote through binding and ongoing service, creating unprecedented efficiency and accessibility for both consumers and insurance providers globally."
Sure's MCP implementation represents the first time AI agents have been granted direct access to core insurance operations through standardized protocols. The technology enables AI assistants, chatbots, and autonomous agents to seamlessly integrate with Sure's insurance infrastructure, empowering them to generate accurate quotes, execute binding decisions, process policy changes, handle claims initiation, and manage customer service interactions—all without human intervention.
Data Privacy
Class Action: Drivers Sour on Lemonade for Exposing License Numbers
A new class action lawsuit alleges that digital insurer Lemonade has violated the privacy of as many as 190,000 drivers by exposing license numbers to cybercriminals through its online auto insurance quote platform.
The complaint filed in federal court in Manhattan accuses Lemonade of negligence in handling of individuals’ data and of violating the federal Driver’s Privacy Protection Act, New York business law, and Federal Trade Commission (FTC) data security guidelines.
By Andrew G. Simpson
Data from more than 300,000 crash reports compromised in Texas DOT system | Repairer Driven News
The Texas Department of Transportation (TxDOT) says a compromised online account downloaded personal data from 300,000 crash reports.
TxDOT identified unusual activity in its Crash Records Information System (CRIS) on May 12, according to a recent news release. It discovered a compromised account was used to improperly access and download the crash reports.
Access from the compromised account was immediately disabled, the release says.
Personal information included in the crash reports includes first and last name, mailing and physical address, driver’s license number, license plate number, and car insurance policy number and information.
According to TxDOT, notification is not required by law in this specific case. However, TxDOT has taken steps to inform the public by sending letters to notify the impacted individuals whose information was included in the crash reports.
Awards
iA Financial Group Named Canada’s Best Auto Insurance Company for 2025 by Forbes
iA Financial Group has been named by Forbes magazine as Canada’s best auto insurance provider in its “World’s Best Auto Insurance Companies” list. This prestigious award is presented in collaboration with Statista, the world-leading market research firm.
The “World’s Best Insurance Companies” 2025 ranking is based on an independent survey of over 45,000 consumers in 15 different countries. The survey considered customers’ overall recommendation, their general satisfaction, their loyalty, and five subdimensions: advice, customer service, price performance, transparency and claims service.
“We are honoured to be recognized by Forbes as Canada’s Best Auto Insurer,” said President and COO of iA Auto and Home, Hugo Fortin. “This award reflects the trust our clients place in us every day, as well as the hard work and dedication of our iA Auto and Home team. We are committed to continuously raising the bar for service excellence and delivering real value to our clients.”
This recognition underscores the importance of innovation and client-centricity in the competitive insurance industry. iA Financial Group continuously adapts to the evolving needs of its clients by leveraging cutting-edge technology and fostering a culture of excellence throughout its operations.
Recommended Events
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