Key European InsurTech investment stats in 2025:
- European InsurTech deal activity fell by 12% YoY in 2025
- UK firms dominated the European InsurTech marketplace completing over a third of all deals from the region
- Napo, a UK-based digital-first pet insurance provider, secured one of the biggest European InsurTech deals of the year with a $15.2m Series B funding round
European InsurTech deal activity fell by 12% YoY in 2025
In 2025, the European InsurTech market remained under pressure, with both deal activity and funding continuing to decline from already weak levels in 2024.
The region recorded 64 deals, a 12% decrease from the 73 deals completed in 2024 and a sharp 78% fall compared with the 295 deals recorded in 2021.
Total funding dropped to $520m, down 40% from $860.8m in 2024 and representing a steep 93% decline from the $7.1bn raised in 2021.
This prolonged contraction highlights the sustained challenges facing the European InsurTech sector, with investor caution persisting and capital deployment remaining subdued.
UK firms dominated the European InsurTech marketplace completing over a third of all deals from the region
At a country level, the UK continued to lead European InsurTech activity in 2025, completing 23 deals (36% share), marginally lower than the 24 deals (33% share) recorded in 2024.
Germany followed with nine deals (14% share), slightly down from 10 deals (14% share) a year earlier, while France secured seven deals (11% share), a notable decline from 16 deals (22% share) in 2024.
Despite the overall reduction in deal volumes, the UK strengthened its relative position within the European InsurTech landscape, while France experienced a clear drop in both deal count and market share amid the broader slowdown.
Napo, a UK-based digital-first pet insurance provider, secured one of the biggest European InsurTech deals of the year with a $15.2m Series B funding round
The funding round was led by Mercia Ventures, alongside participation from existing investors including DN Capital, Companion Fund, and Helvetia Venture Fund.
Specialising in lifetime coverage that includes dental care, behavioural consultations, 24/7 vet access, and multi-pet discounts, Napo is redefining pet insurance by integrating AI-driven claims handling and automation into a seamless digital platform.
Its end-to-end model reduces administrative costs while maintaining high customer satisfaction, as evidenced by a standout NPS and Trustpilot reviews.
The fresh capital will fuel Napo’s geographical expansion, enhance its AI capabilities, and support talent acquisition as it continues to scale a sustainable and customer-focused approach to pet insurance across Europe.
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