Global InsurTech funding picked up in 2025 after three weak years. Total investment rose 19.5% year on year to $5.1 bn, the first annual gain since 2021. Q4 drove part of the shift, according to Gallagher Re.
Global InsurTech funding jumped 66.8%, rising from $1.01 bn in Q3 2025 to $1.68 bn in Q4 2025.
P&C posted the sharper recovery. Funding in that segment rose 34.9% from 2024’s trough to $3.49 bn in 2025. L&H moved the other way, with funding slipping modestly over the year.
Across both segments, investors kept backing standalone technology firms over businesses selling themselves as tech-enabled brokers and MGAs. The tilt wasn’t subtle.
The United States widened its lead in insurance technology. Its share of global InsurTech deals increased by 5.16 percentage points between 2024 and 2025, the largest gain recorded by any country.
AI also pulled in a huge slice of capital. Roughly two-thirds of annual InsurTech funding went to AI-focused companies, with more than $3.3 bn raised across almost 230 deals, according to Beinsure analysts.
Global InsurTech funding rose from $4.25 bn in 2024 to $5.08 bn in 2025. The market’s annual increase leaned heavily on a sharp rise in $100 mn-plus mega-rounds.
Those deals increased from six to 11 over the year, lifting mega-round funding 53.2% from $930 mn to $1.43 bn. Deal count also edged higher, up 6.4% from 344 in 2024 to 366 in 2025.
That gain looks modest on paper, still it broke the steady slide seen since the 2021 peak. Average deal size rose 14% to $15.79 mn.
Early-stage InsurTech moved against the broader market. Funding fell 9.1% year on year from $1.22 bn in 2024 to $1.11 bn in 2025. Deal count also dipped, from 193 to 185.
Even so, the average early-stage round rose 12.1% to $6.6 mn in 2025, which points to steady demand for younger firms that did secure backing. The number of active InsurTech investors also increased for the first time since 2021, climbing from 788 in 2024 to 852 in 2025.
Q4 2025 delivered the strongest quarter since Q3 2022, when funding reached $2.35 bn. P&C led the quarter’s surge, with funding up 90.5% quarter on quarter to $1.31 bn.
L&H also advanced, rising 14.9% to $361.52 mn. More than 100 InsurTechs raised capital in a quarter for the first time since Q1 2024. Total deal count increased 34.2% quarter on quarter to 102, and average deal size climbed 20.0% to $18.84 mn.
Five companies accounted for $662.81 mn in Q4 mega-rounds. CyberCube raised $180 mn in growth equity. ICEYE secured $174.81 mn in a Series E round.
Creditas brought in $108 mn in Series G funding. Federato raised $100 mn in Series D funding, and Nirvana matched that with its own $100 mn Series D. Big tickets, no doubt, shaped the quarter.
Early-stage activity also strengthened late in the year. Funding reached an 11-quarter high, rising from $277.65 mn in Q3 2025 to $403.09 mn in Q4 2025. Both P&C and L&H contributed to that increase.
P&C funding recovered from its 2024 low and finished 2025 at $3.49 bn. Mega-rounds did much of the lifting. Funding from those deals rose from $320 mn in 2024 to $1.06 bn in 2025, while deal count increased 20% to 264. L&H told a different story. Funding fell 4.6% year on year to $1.59 bn, and deal count dropped 17.7% to 102.
Tech vendors took a larger share of activity across both P&C and L&H. In P&C, 58% of deals went to B2B InsurTechs in 2025, up 12 percentage points from the 2021 funding boom.
Over the same period, the share going to lead generation, broker, and MGA firms fell from 42% in 2024 to 35% in 2025, the lowest level on record. In L&H, B2B InsurTechs accounted for 64% of 2025 deals, up one percentage point from 2024.
According to our data, investors kept chasing software-first businesses, and they weren’t shy about it.
