Key European InsurTech investment stats in 2025:
- European InsurTech funding plummeted by 40% YoY
- Larger deals (over $100m) dropped by 44% as investors grew cautious
- Insify, a Netherlands-based InsurTech platform focused on providing tailored digital insurance solutions for freelancers and small to medium-sized enterprises (SMEs), secured one of the biggest European InsurTech deals of the year with a $17.6m Series B funding round
European InsurTech funding plummeted by 40% YoY
In 2025, the European InsurTech market recorded a further contraction in both deal activity and funding compared with 2024.
Total deal volume fell to 43 transactions, down 27% from the 59 deals completed in 2024.
Funding declined more sharply, dropping to $520m, a 40% decrease from the $861m raised the previous year.
This softer funding environment was also reflected in average deal sizes, which eased to $12.1m in 2025 from $14.6m in 2024, indicating continued pressure on ticket sizes as investor caution persisted across the sector.
Placing these figures in a longer-term context highlights the scale of the market reset.
In 2021, European InsurTech attracted $7.1bn across 212 deals, meaning that by 2025 funding is down 93% and deal volumes have fallen 80%.
Larger deals (over $100m) dropped by 44% as investors grew cautious
The pullback has been evident across deal sizes: funding from deals under $100m declined 37% year on year to $345m in 2025, from $547m in 2024, while deals of $100m and over fell 44% to $175m, down from $314m.
Compared with 2021, when large deals accounted for $5.5bn of total funding, the sharp reduction in both segments underscores how far European InsurTech investment has retrenched from peak levels.
Insify, a Netherlands-based InsurTech platform focused on providing tailored digital insurance solutions for freelancers and small to medium-sized enterprises (SMEs), secured one of the biggest European InsurTech deals of the year with a $17.6m Series B funding round
It was led by Evli Growth Partners, alongside continued support from Accel, Opera Tech Ventures, Munich Re Ventures, Visionaries Club, and Frontline Ventures.
Founded to simplify and modernise business insurance, Insify leverages AI-driven technology to streamline onboarding, automate underwriting, and offer flexible, transparent coverage designed specifically for self-employed professionals.
The funding will be used to accelerate Insify’s European expansion, enhance its suite of AI-powered insurance products, and strengthen its digital platform across key markets including the Netherlands, France, and Germany.
Serving thousands of professionals across sectors such as consulting, design, and skilled trades, the company has seen its gross written premiums more than triple since its Series A extension, underscoring its growing role in reshaping the SME insurance landscape across Europe.
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