This Week's Top Insurtech Stories

Federato Secures US$100m to Drive AI-Native Insurance Tech

AI-native insurance platform Federato has raised US$100m in Series D funding led by Growth Equity at Goldman Sachs Alternatives.

The round included participation from returning investors Emergence Capital, Caffeinated Capital, StepStone Group and Pear VC.

The funding marks a significant validation of insurers' growing appetite for AI-native solutions over traditional legacy systems retrofitted with AI capabilities.

The investment reflects growing investor confidence in purpose-built AI platforms for the insurance sector.

"Our diligence in P&C insurance revealed that Federato's AI-native platform delivers a step change in ROI and efficiency compared to prior generations of core systems," says Jade Mandel, Managing Director at Growth Equity at Goldman Sachs Alternatives.

"Federato has built the full policy lifecycle solution the market has been waiting for and we're excited to invest in a company whose domain and AI expertise are already delivering measurable results for insurers."

Are AI-Powered Cyber Threats Reshaping Insurance Risks?

Today’s cyber threat landscape is defined by speed, deception and AI-driven precision – a combination with serious implications for the insurance sector.

For insurers and insurtechs, identity has become a critical battleground. From digital distribution and embedded insurance to real-time claims automation, every interaction relies on trusted identities and secure access to highly sensitive policyholder and partner data.

As adversaries such as SCATTERED SPIDER adapt and refine their tactics to exploit both human and systemic vulnerabilities, the attack surface for digital insurance platforms continues to expand.

Criminals can now weaponise AI to scale social engineering, compromise identities and move laterally across cloud-native environments that underpin modern insurance offerings.

To keep pace, organisations must rethink how they detect, respond to and outpace these attacks, says Zeki Turedi, Field CTO for Europe at CrowdStrike.

For insurance and insurtech leaders, this means embracing AI-native defence, investing in end-to-end visibility across the AI and data lifecycle and treating identity as the new security perimeter.

In this Q&A with InsurTech Digital, Zeki explores the rise of agentic defence, the development of AI Detection and Response (AIDR) and how cross-sector collaboration is transforming the fight against modern cybercrime. He also touches on what this means for the future of digital insurance.

Aviva Leads Insurance Sector's Climate Resilience Push

The insurance sector has become a critical force in climate adaptation strategies, with major players leveraging their unique position to lead resilience efforts across vulnerable communities and heritage sites.

According to Aviva's Building Future Communities report, eight million properties in the UK could face flooding risk by 2050, while 1.4 million could be vulnerable to subsidence.

This data highlights the scale of the challenge insurers are confronting as they work to protect assets and communities from climate impacts.

The report reveals that iconic British landmarks, including Giant's Causeway, Hampton Court Palace and Edinburgh Castle, are exposed to climate change effects, highlighting the urgent need for the insurance industry to take a leadership role in climate preparedness and protection strategies.

KPMG Insights: The Insurance Implications of COP30

 COP30 in Belém was described as the “implementation COP,” marking a shift from broad commitments to tangible progress on climate goals. Simon Weaver, Global Head of ESG Advisory at KPMG, shares his insights on what this means for business and finance—from the growing emphasis on adaptation and nature, to the expanding remit of the Chief Sustainability Officer, and the increasing influence of insurance, climate risk, and carbon markets on corporate valuations.

Simon also highlights why measuring the cost of inaction, unlocking private capital, and leveraging AI will be essential as global leaders move toward Davos and face deepening adaptation and nature challenges.

What did COP30 focus on? How did it compare to COP29?

COP 30 was termed the “implementation COP” – with the presidency recognising the need to move from discussion to action. It is one thing to have NDCs – but we now need actionable plans that will deliver on this, with clarity on the innovations, policies and investments needed to achieve the commitments set out in the NDCs. Without this, it is very hard for the various stakeholders (companies, citizens, etc.) to know how they fit in, noting that companies and citizens clearly can influence policy too 

Compared to COP 29 in Baku, there was significantly more discussion in Belem around both Adaptation and Nature – two issues that are inherently linked. The evidence is clear that climate adaptation investment yields significant returns. The World Resources Institute has just published its own research that reveals that every US$1 spent on adaptation and resilience returns around US$10. Despite the clear business case, spend in these two areas remains woefully low. 

Why Marsh UK Appoints James Addington-Smith as New CEO

Marsh, the world's leading insurance broker and risk advisor and a business of Marsh McLennan, has revealed that James Addington-Smith will become the next CEO of Marsh UK.

The appointment could signal a renewed focus on client-centred innovation as the insurance sector increasingly grapples with technological transformation and economic uncertainty.

According to the company, James will assume the position from 1 January 2026, subject to regulatory approval. He will succeed Chris Lay, who is retiring in the first quarter of 2026 after more than 40 years with the business.

The transition comes at a critical moment for the UK insurance market, as organisations face mounting pressure to integrate emerging technologies whilst navigating complex commercial challenges.

Discussing the appointment, Martin South, president and CEO of Marsh, says in a statement: "James is an exceptional leader with a proven track record of client-focused innovation, working with both specialty and retail clients.

"It is very appropriate that someone with such a strong international career will lead our strategically important UK business, a global centre for insurance broking and innovation."