Key Global InsurTech investment stats in Q1 – Q3 2025:
- Global InsurTech funding dropped by 40% YoY
- Trend analysis shows investments in 2025 are expected to drop by 29%
- Larger deals plummeted by 80% as investors grew cautious due to market uncertainties
- wefox, an InsurTech platform that combines smart insurance distribution with asset-light managing general agent (MGA) services, secured one of the biggest InsurTech deals of the first nine months with a $177.8m funding round
Global InsurTech funding dropped by 40% YoY
Across the first three quarters of 2025, the global InsurTech market recorded a decline in both funding and deal activity when compared with the same period in 2024.
Total funding fell to $2.2bn, a 40% drop from the $3.7bn raised over the first three quarters of 2024.
Deal volume also declined, with 154 transactions completed in the period, representing a 7% decrease from the 166 deals recorded a year earlier.
As a result, the average deal size contracted from $22.6m in the first three quarters of 2024 to $14.6m in the same period of 2025, signalling a marked shift towards smaller ticket rounds across the market.
Trend analysis shows investments in 2025 are expected to drop by 29%
If activity in the opening three quarters of 2025 were extended across the full year, total funding for 2025 would reach $3bn from around 205 deals.
This would represent a 29% reduction in overall funding compared with the $4.2bn raised in 2024, while deal activity would remain broadly flat relative to the 205 transactions completed last year.
Under this projection, the average deal size for 2025 would settle at roughly $14.6m, significantly below the $20.5m average recorded in 2024, reflecting a continued recalibration towards smaller and more targeted investments as market conditions tighten.
Funding dynamics by deal size show a contrasting picture.
Larger deals plummeted by 80% as investors grew cautious due to market uncertainties
In the first nine months of 2025, deals under $100m totalled $1.872bn, a slight 1% increase on the $1.855bn recorded during the same period in 2024.
In contrast, deals worth $100m or more dropped sharply to $375m in the first three quarters of 2025, an 80% fall from the $1.9bn secured a year earlier.
Projecting these trends across the full year would result in $2.5bn invested in sub-$100m deals in 2025, up 9% from the $2.3bn recorded in 2024, while large-scale deals would fall to roughly $500m, a steep 74% decline from the $1.9bn raised last year.
This shift indicates a market increasingly driven by early- and mid-stage rounds, with major late-stage financing rounds becoming far less common.
wefox, an InsurTech platform that combines smart insurance distribution with asset-light managing general agent (MGA) services, secured one of the biggest InsurTech deals of the first nine months with a $177.8m funding round
The capital raise includes from existing investors such as Searchlight Capital Partners’ credit fund.
The funding will support wefox in strengthening its core market positions across Austria, the Netherlands, and Switzerland, while accelerating the growth of its MGA and digital insurance distribution businesses internationally.
Following a comprehensive restructuring programme that streamlined operations and refocused on profitable markets, wefox is now positioned for sustainable growth.
The company operates leading retail broker and term-life insurance platforms in its key markets, leveraging advanced digital infrastructure and strategic partnerships with insurers to enhance customer experience, drive efficiency, and expand its reach across Europe’s evolving insurance landscape.
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