Global: InsurTech funding surges 90% in 1Q2025
Source: Middle East Insurance Review | Jun 2025
Global InsurTech funding surged 90.2% q-o-q to $1.31bn in 1Q2025, including the highest funding to P&C InsurTechs since 3Q2022, according to Gallagher’s recent ‘Global InsurTech Report for Q1 2025’.
The report estimates that of the $60bn-plus that has been invested into InsurTechs since 2012, $10.98bn has been invested into auto/motor InsurTech companies. This covers InsurTechs that have developed software and tools for (re)insurers to use, and InsurTechs that themselves originate auto business as an MGA/carrier.
Overall P&C InsurTech funding surged 175.8% q-o-q, from $408.38m in 4Q2024 to $1.13bn in 1Q2025. Nine of the quarter’s top 10 deals by funding amount went to P&C InsurTechs. The first quarter of 2025 was just the second quarter since 4Q2022 to see three or more $100m+ mega-round deals, all of which went to P&C InsurTechs: Quantexa ($175m), Openly ($123m) and Instabase ($100m). Average InsurTech deal sizes increased with the broader funding surge, rising 42.1% q-o-q to $15.77m in 1Q2025. Even so, funding to L&H InsurTechs declined 34.6% q-o-q to $183.14m in 1Q2025.
Early-stage InsurTechs raised $170.79m in funding in 1Q2025, a nearly five-year low, added the report noting that 2Q2020 was the last quarter to see less early-stage InsurTech funding ($132m). On a q-o-q basis, funding declined 11.9% from $193.77m in 4Q2024. The average early-stage deal size dropped to $3.71m — the lowest since 1Q2017 ($3.43m). This was also partly due to an increase in deal count from 41 in 4Q2024 to 51 in 1Q2025.
The report highlighted that 61.2% of 1Q2025 InsurTech deals went to AI-centred companies ($710.86m) across 60 deals with the average deal size reaching $13.94m. It adds that auto-focussed InsurTechs raised $428.78m in funding over 1Q2025, accounting for 27 of the 97 deals within the quarter. In addition, five (re)insurance investors made three or more tech investments in the 1Q2025, said the report. M