In a recent segment of The Connected Podcast, the discussion centered on the dynamic shifts within the insurance ecosystem as of 2025. Life Insurance Awareness Month in September highlights ongoing efforts by insurers to increase awareness and boost enrollment. Companies are leveraging gamification and AI to creatively engage and educate consumers, aligning with evolving digital expectations.
The InsurTech sector is also experiencing significant momentum. In the first half of 2025, US InsurTech funding surged by 66% compared to the previous year, reaching 873 million dollars despite a modest increase in transaction numbers. This indicates a trend toward larger deals, driven by investor confidence in InsurTech's growth potential.
New York and California remain dominant in the InsurTech landscape, although Texas and Massachusetts are emerging as new players. Notably, Bestow Inc. secured 70 million dollars in Series D funding to advance its B2B focus, positioning itself as a key partner for major insurers and driving digital transformation across the industry. Overall, 2025 promises transformative developments in both life insurance and InsurTech investment.
The episode also spotlighted COVU, an AI-native operating system for the insurance industry. COVU has successfully secured an additional $16 million in funding, raising its total to approximately $50 million. This new capital aims to accelerate platform development, improve infrastructure, and enhance agency adaptability. Located in California, COVU provides independent agencies with CRM, marketing tools, licensed support, and carrier access, setting itself apart with a technology-centric approach. The company is also expanding through acquisitions, having completed seven agency takeovers.
Ali Safavi, COVU's CEO, emphasizes that their mission goes beyond selling software, aiming to build infrastructure that supports the future of the insurance industry with enhanced intelligence, efficiency, and empathy, all while maintaining the trusted advisor relationship valued by customers.
The podcast examined the broader insurance industry's critical need to embrace technology-driven transformation to achieve efficiency, innovation, and profitable growth. Traditional models, based on outdated assumptions about products, pricing, and customer interactions, are being challenged by evolving customer expectations, competitive pressures, and technological advancements. Insurers are urged to rethink their business models and processes, leveraging cutting-edge technologies like Cloud computing, AI, IoT, and more, to drive operational effectiveness and ensure future innovation—a strategy described as smart investing for long-term success.
In this episode, the focus is on addressing the silo mentality in the insurance industry and the transformative impact of Gen-Z. The discussion begins with the common disconnect between underwriting and customer service in insurance agencies, often exacerbated by separate operating systems and timelines. This divide leads to communication gaps, duplicated efforts, and customer dissatisfaction. The segment highlights the benefits of integrated insurance platforms that promote transparency, real-time data sharing, and streamlined processes, enhancing accountability and trust within agencies.
The conversation then shifts to the emerging influence of
