Key global InsurTech investment stats in 2025:
- Global InsurTech investments declined by 20% YoY in 2025
- Deals over $100m halved as investors shifted toward smaller deals sizes
- wefox, a Zurich-based InsurTech platform that combines smart insurance distribution with asset-light managing general agent (MGA) services, secured one of the biggest InsurTech deals of the year with a $177.8m funding round
Global InsurTech investments declined by 20% YoY in 2025
In 2025, the global InsurTech market continued to contract compared with prior peak years, with both funding and deal activity remaining significantly below 2021 levels.
Total funding reached $3.3bn across 201 deals in 2025, representing a 20% drop from the $4.2bn raised across 205 transactions in 2024.
Compared with 2021, when the market recorded $22.4bn across 773 deals, this equates to an 85% decline in funding and a 74% drop in deal volume.
Average deal size has also reduced over this period, falling from $29m in 2021 to $20.5m in 2024 and further to $16.7m in 2025, indicating a shift towards smaller transactions as overall capital deployment declined.
Deals over $100m halved as investors shifted toward smaller deal sizes
Funding composition shifted notably across deal sizes.
Deals under $100m totalled $2.4bn in 2025, showing a 5% increase from $2.3bn in 2024 but remaining 66% lower than the $7.2bn recorded in 2021.
In contrast, deals valued at $100m or more reached $929m in 2025, representing a 51% drop from $1.9bn in 2024 and a 94% decline from the $15.2bn deployed into large deals in 2021.
This indicates that while smaller deal activity has shown modest resilience year on year, large ticket transactions have fallen sharply from peak cycle levels.
wefox, a Zurich-based InsurTech platform that combines smart insurance distribution with asset-light managing general agent (MGA) services, secured one of the biggest InsurTech deals of the year with a $177.8m funding round
The capital raise includes from existing investors such as Searchlight Capital Partners’ credit fund.
The funding will support wefox in strengthening its core market positions across Austria, the Netherlands, and Switzerland, while accelerating the growth of its MGA and digital insurance distribution businesses internationally.
Following a comprehensive restructuring programme that streamlined operations and refocused on profitable markets, wefox is now positioned for sustainable growth.
The company operates leading retail broker and term-life insurance platforms in its key markets, leveraging advanced digital infrastructure and strategic partnerships with insurers to enhance customer experience, drive efficiency, and expand its reach across Europe’s evolving insurance landscape.
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