Key Global InsurTech investment stats in Q1 2025:
- Global InsurTech deal activity dropped by 15% YoY as investors grew cautious
- Trend analysis showed a projected 28% drop in investments for 2025
- High Definition Vehicle Insurance (HDVI), a technology-first commercial auto InsurTech, secured one the largest global InsurTech deals of the quarter with a $40m growth capital raise
Global InsurTech deal activity dropped by 15% YoY as investors grew cautious
In Q1 2025, the Global InsurTech market experienced a significant contraction in deal activity despite a slight increase in overall funding.
The quarter closed with just 55 deals, representing a 15% drop from the 65 deals completed in Q1 2024.
Funding, however, edged up 4% YoY to reach $746m, compared to $718m in Q1 2024.
The average deal size in Q1 2025 was $13.6m, a 19% increase from the $11.4m average seen in Q1 2024, signalling a pivot toward slightly larger transactions.
Trend analysis showed a projected 28% drop in investments for 2025
If Q1 2025 trends were to continue for the rest of the year, 2025 would close with 220 deals and $3bn in total funding.
This would mark a 72% drop in deal volume from the 773 deals recorded in 2024 and a 28% decrease in total funding from $4.2bn.
These projections highlight a more concentrated investment environment, with capital being deployed across a limited number of high-value opportunities, as investors adopt a more cautious and selective approach amid broader market uncertainties.
In Q1 2025, deals under $100m totalled $571m, marking a 21% drop from $718m in Q1 2024.
Meanwhile, deals worth $100m or more came in at $175m for the quarter — a relatively small figure compared to the full-year 2024 total of $1.9bn.
The reduction in both deal count and distribution of funding across deal sizes reinforces the shift in investor preference towards a handful of later-stage or strategic bets, with less appetite for smaller-scale InsurTech investments.
High Definition Vehicle Insurance (HDVI), a technology-first commercial auto InsurTech, secured one the largest global InsurTech deals of the quarter with a $40m growth capital raise
The round was co-led by existing investors 8VC, Autotech Ventures, Munich Re Ventures, and Weatherford Capital, and will accelerate the expansion of HDVI’s telematics-based product suite, nationwide coverage, and digital tools for agents.
HDVI’s platform leverages over 7.5bn miles of telematics data to transform underwriting and claims processing, enabling dynamic pricing, real-time risk assessment, and tangible safety improvements for fleet operators.
Since launching HDVI Shift™ in 2021, the company has achieved a 107% compound annual growth rate while maintaining a loss ratio well below industry averages.
With enhanced reinsurance capacity from A+ rated global reinsurers and a leadership transition geared for scaling, HDVI is doubling down on its data-driven approach to redefine commercial auto insurance by aligning safety performance with pricing incentives and operational efficiency.
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