Key US InsurTech investment stats in 2025:
- US InsurTech deal activity increased by 6% YoY
- Californian companies retained their top spot in the US InsurTech market with a 31% share of all US Deals in 2025
- Bestow Inc., a leading InsurTech company transforming the life and annuities sector through its enterprise-focused technology platform, secured one of the biggest US InsurTech deals of the year with a $70m Series D equity round
US InsurTech deal activity increased by 6% YoY
In 2025, the US InsurTech market remained under significant pressure, with funding levels and deal activity continuing to trail historic highs despite a modest shift in transaction volumes.
The sector completed 145 deals, representing a 6% increase from the 137 deals recorded in 2024, although activity was still down 68% compared with the 460 deals completed in 2021.
Total funding fell to $2.1bn, a 23% decrease from the $2.8bn raised in 2024 and an 83% decline relative to the $12.6bn secured in 2021.
This sustained contraction highlights the ongoing caution among investors, with capital deployment remaining subdued even as deal volumes showed tentative signs of stabilisation.
Californian companies retained their top spot in the US InsurTech market with a 31% share of all US Deals in 2025
At a state level, California continued to lead US InsurTech activity in 2025, completing 45 deals (31% share), up 25% from 36 deals (26% share) in 2024.
New York followed with 38 deals (26% share), marking a 58% increase from the 24 deals (18% share) recorded a year earlier.
Florida ranked as the third most active state with 10 deals (7% share), replacing Texas, which had completed nine deals (7% share) in 2024.
Despite the broader weakness in the market, California and New York both strengthened their share of total US InsurTech deal activity, indicating a continued concentration of investment within these established hubs even as overall funding levels declined.
Bestow Inc., a leading InsurTech company transforming the life and annuities sector through its enterprise-focused technology platform, secured one of the biggest US InsurTech deals of the year with a $70m Series D equity round
The round, co-led by Growth Equity at Goldman Sachs Alternatives and Smith Point Capital, will fuel Bestow’s continued expansion and accelerate the development of new products tailored to the needs of life insurance and annuity providers.
Having recently shifted focus exclusively to B2B after divesting its consumer-facing life insurance business, Bestow is now positioned as a mission-critical partner for major insurers, offering an end-to-end platform that spans product design, underwriting, and policy administration.
With a 3.5x YoY increase in transaction volume and partnerships with institutions like Nationwide, Transamerica, and USAA, the company is redefining operational efficiency and digital transformation across the insurance value chain.
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