Key Global InsurTech investment stats in Q3 2025:
- Global InsurTech funding plummeted by 68% YoY in Q3
- Investor caution curbed large deals with a drop of 95% in deals over $100m
- COVU, an AI-native operating system for the insurance industry, secured one of the biggest InsurTech deals of the quarter with a $16m funding round
Global InsurTech funding plummeted by 68% YoY in Q3
In Q3 2025, the global InsurTech sector saw a sharp decline in overall funding compared to the same quarter of the previous year, though deal activity remained relatively stable.
A total of 51 deals were recorded in Q3 2025, broadly in line with the 50 deals completed in Q3 2024 and up 6% from the 48 deals seen in Q2 2025.
Total funding reached $752m in Q3 2025, marking a steep 68% drop from the $2.4bn raised in Q3 2024 but remaining flat compared to the $750m recorded in Q2 2025.
The average deal size in Q3 2025 stood at $14.7m, down significantly from $47.5m in Q3 2024 but consistent with the $15.6m recorded in Q2 2025.
It is important to note that Q3 2024 included the landmark $1bn Sedgwick transaction, which heavily inflated that quarter’s total.
Excluding this deal, Q3 2024’s adjusted funding would have been around $1.4bn — meaning Q3 2025’s $752m still represents a 46% decline year-on-year.
Investor caution curbed large deals with a drop of 95% in deals over $100m
Funding from deals under $100m totalled $652m in Q3 2025, up 35% from the $483m recorded in Q3 2024 and steady compared to the $650m in Q2 2025.
Larger deals valued at $100m or more accounted for $100m in Q3 2025, down sharply by 95% from the $1.9bn recorded in Q3 2024, or 86% lower when the Sedgwick deal is excluded.
This substantial contraction in high-value transactions indicates that investors remain cautious about deploying large sums, with capital flows increasingly concentrated in smaller, early-stage or mid-market InsurTech firms.
COVU, an AI-native operating system for the insurance industry, secured one of the biggest InsurTech deals of the quarter with a $16m funding round
The round brought its total capital raised to around $50m.
Headquartered in the US, the company is redefining how insurance is delivered and managed by empowering independent agencies with a full-service, AI-driven platform that streamlines servicing, enhances profitability, and modernises customer engagement.
COVU’s offering combines automated customer support, licensed insurance professionals, and direct carrier access with compliance, staffing, and operational oversight, enabling agencies to scale efficiently or transition through structured exits.
The fresh capital will accelerate the development of its AI-native platform, expand operational infrastructure, and strengthen partnerships with carriers and agencies across the country.
As the insurance sector grapples with increasing complexity and capacity constraints, COVU is positioning itself at the forefront of InsurTech innovation—delivering a modern, technology-enabled model that simplifies operations while preserving trusted customer relationships.
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