Insurtech funding dips slightly to $1b in third quarter 2025

Investor participation in insurtech continued to decline with only 186 active investors.

Global insurance technology (insurtech) funding reached $1b in the third quarter of 2025, down by $0.1b from the previous quarter, according to CB Insights. 

Property and casualty (P&C) insurtech funding rebounded slightly to $0.7b, whilst life and health (L&H) insurtechs raised $0.3b during the period.

The median early-stage deal size fell 24% year-to-date, from $3.8m in 2024 to $2.9m in 2025. 

Early-stage startups accounted for about 60% of all deals, marking the lowest deal-share since 2011.

Insurtech deal activity also slowed, with just 76 deals recorded in Q3 2025 — the lowest since the second quarter of 2016. 

This was down from 90 deals in Q2 and 65% below the peak of 219 deals in early 2021. P&C deals dropped to 56, whilst L&H deals fell to 34, the lowest level since late 2014.

Investor participation in insurtech continued to decline. Only 186 active investors were involved in Q3 2025, down 72% from the peak in Q2 2021 and slightly below the 184 investors seen in early 2017. 

Thirteen investors made two or more investments, including American Family Ventures, ManchesterStory Group, Munich Re Ventures, and OperaTech Ventures.

Despite the slowdown in funding and investor activity, insurtech mergers and acquisitions increased. 

There were 21 mergers and acquisitions deals in Q3 2025, up from 16 in the previous quarter and the highest since Q3 2022, when there were 23.