Key Global InsurTech investment stats in Q1 2025:
- Global InsurTech funding increased by 59% YoY
- US reinforced its global InsurTech market dominance securing half of the top 10 deals for the quarter
- Naked, South Africa’s AI-driven digital insurance platform, secured one of the biggest InsurTech deals of the quarter with a $38m Series B2 funding round, making it the only African company to feature in the global top 10 deals
Global InsurTech funding increased by 59% YoY
In Q1 2025, the global InsurTech sector recorded $1.1bn in total funding across 58 deals, marking a strong rebound from the $718m raised through 65 deals in Q1 2024.
This reflects a substantial 59% increase in funding year-on-year, despite a slight decline in the number of deals.
The rise in capital deployed, even with fewer transactions, indicates a shift toward larger deal sizes and perhaps a growing investor preference for more mature or promising InsurTech firms.
While overall activity in terms of deal count has softened, the funding surge suggests renewed confidence in the sector, potentially buoyed by a focus on digital transformation and embedded insurance models.
US reinforced its global InsurTech market dominance securing half of the top 10 deals for the quarter
The United States continued to dominate the global InsurTech landscape, securing five of the top 10 deals in both Q1 2024 and Q1 2025.
The United Kingdom also maintained its presence but increased its share from one top deal in Q1 2024 to two in Q1 2025, reinforcing its role as Europe’s leading InsurTech hub.
However, several countries that featured in Q1 2024, including Germany, Indonesia, the Netherlands and Cyprus, did not make the top 10 in Q1 2025.
In their place, South Africa, Brazil, and Puerto Rico emerged, highlighting a diversification of high-value activity into new and developing InsurTech markets.
This evolving geographic distribution suggests a broader global appetite for innovation in insurance, with investment expanding beyond the traditional strongholds.
Naked, South Africa’s AI-driven digital insurance platform, secured one of the biggest InsurTech deals of the quarter with a $38m Series B2 funding round, making it the only African company to feature in the global top 10 deals
The round attracted participation from global impact investor BlueOrchard and saw continued backing from Hollard, Yellowwoods, IFC, and DEG.
Launched in 2018, Naked has redefined the insurance model by building a fully digital, automation-led platform that enables users to purchase and manage car, home, and single-item policies online—without human intervention.
The company’s proprietary AI technology enhances user convenience, optimises risk selection, and ensures strong unit economics.
Its unique business model, which allocates a fixed portion of premiums to operations and donates excess funds to user-nominated causes, fosters trust and transparency in claims handling.
With this fresh injection of capital, Naked is set to deepen its AI capabilities, expand its product suite and markets, and scale its customer acquisition efforts as it continues to modernise the insurance experience across the region.
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