Global InsurTech funding extends decline as investment falls 50% in April
Global InsurTech investment cooled further in April, with eight deals raising approximately $119m, marking another step down from March’s already subdued $237m.
That represents a roughly 50% month-on-month decline in funding, reinforcing the sharp pullback seen since February’s $1bn-plus peak and underlining a clear contraction in both capital deployment and deal volume.
Unlike earlier in the year, April was defined entirely by smaller rounds, with no deals exceeding $100m for the first time this year.
This also sits in line with a broader structural shift in deal composition across the sector from 12 months ago. Research from FinTech Global shows that deals over $100m plummeted by 85% in H1 2025, falling to $275m from $1.9bn in H2 2024, as investors pulled back from larger, later-stage commitments.
The largest raise of the month came from US-based Counterpart, which secured $50m in a Series C round to expand its AI-driven underwriting and risk platform. The deal accounted for a substantial share of the month’s total and highlights the continued investor preference for specialist, data-led insurance models.
Beyond this, deal sizes dropped away quickly. The UK’s Zego raised $28m to expand its telematics offering into Japan through a strategic partnership with Sompo Holdings, while Malaysia’s PolicyStreet secured $21m to scale its embedded insurance platform across Asia.
Together, these three transactions made up the vast majority of capital deployed in April, pointing to a market still reliant on a small number of mid-sized rounds rather than broad-based funding momentum.
The remaining activity was concentrated in early-stage investments, particularly across artificial intelligence and operational infrastructure. Companies such as Cara and RIIG Technology raised funding to automate broker workflows and healthcare claims processing respectively, while Felix attracted backing for its AI-driven workflow platform targeting regulated industries including insurance. Elsewhere, Eleos Life and Insurteam focused on expanding digital distribution and embedded models across life and travel insurance.
This translated into a clear subsector pattern. AI and automation platforms accounted for half of all deals during the month, spanning underwriting, claims, and back-office operations. Embedded insurance and distribution models formed the next largest group, while more traditional insurance propositions — including motor and travel — were limited to a small number of transactions.
Geographically, activity remained internationally diverse but heavily weighted towards the United States, which produced five of the eight deals, including the largest round. The UK, Malaysia and Switzerland each recorded a single transaction, highlighting the continued global spread of innovation even as capital becomes more concentrated.
Here’s a list of April’s InsurTech funding rounds:
Valor backs Counterpart with $50m Series C raise
Counterpart, a specialty InsurTech firm pioneering Agentic Insurance™ for the AI era, has completed a $50m Series C funding round, bringing its cumulative total raised to $106m.
Valor Equity Partners led the investment, with Vy Capital, an existing shareholder, continuing its participation.
The company intends to deploy the capital across four areas: introducing new specialty insurance products, developing industry-specific programmes, enhancing claims and risk management services, and capitalising Counterpart Insurance Company to enable it to retain risk and more closely align incentives with its partners across the value chain.
Counterpart has spent more than five years building the underwriting expertise, proprietary data, and technology infrastructure needed to price and manage risks at a precision the traditional insurance market is unable to offer.
The InsurTech offers its Agentic Insurance, which combines deep insurance expertise with modern AI. Through this, clients can access improved management and professional liability solutions for underwriting, risk management and claims resolution.
To date, the company has processed over 250,000 applications and written more than 35,000 policies through a network of 2,800 brokers and four A-rated carriers. It reports industry-leading loss ratios, claim settlement speeds more than twice as fast as sector benchmarks, and outcomes more than 1
Zego secures $28m to expand telematics in Japan
Zego, a UK-based digital motor InsurTech, has announced a strategic partnership with Sompo Holdings, one of Japan’s largest insurance groups, as part of a $28m (approximately £20.6m) funding round.
Sompo Holdings participated in the raise alongside Zego’s existing investors, with the round reflecting confidence in Zego’s AI-first platform and the value it provides to customers.
The funds will support the two firms’ joint efforts to explore and build telematics-based insurance products for the Japanese market.
The collaboration brings together Sompo Group’s domestic insurance expertise and market knowledge with Zego’s technology platform and AI capabilities, with both parties aiming to advance tech-enabled telematics insurance and AI-driven solutions. Central to the initiative is a shared view that data-led, usage-based insurance can deliver better outcomes for customers by rewarding safer driving behaviour, improving road safety, and enabling fairer, more personalised pricing.
Founded in 2016, Zego is a pioneering InsurTech offering flexible, data-driven commercial motor insurance.
Malaysian InsurTech PolicyStreet bags $21m
PolicyStreet has secured $21m in the first close of its Series C round as the Malaysian InsurTech scales its embedded insurance platform across Asia.
The funding round was led by Cool Japan Fund and included participation from existing investors Altara Ventures and Gobi Partners, alongside additional investors, according to FinTech News Malaysia.
The deal brings PolicyStreet’s total backing to more than $100m and adds a second sovereign wealth fund to its investor base.
Malaysia’s sovereign wealth fund Khazanah had previously backed the company in a RM67m ($15.3m) Series B round in 2023.
PolicyStreet plans to use the new capital to accelerate regional expansion, invest further in its technology platform and deepen partnerships across sectors including mobility, travel, logistics, telecommunications and gig economy platforms.
The InsurTech said it recently reported more than $1m in profit for FY2025, positioning the company among a small group of profitable InsurTech firms operating at scale in the region.
Cara raises $8m to scale AI infrastructure for brokers
AI platform Cara has raised $8m in seed funding to help insurance brokerages automate sales and servicing workflows.
The round was led by Kearny Jackson, with participation from Claire Hughes Johnson, former Chief Operating Officer of Stripe; Kevin Mahaffey, founder of SNR; Sam Hodges, CEO of Vouch Insurance; and Colin Evans from OpenAI’s startups and partnerships team.
Cara provides brokerages, agencies and wholesalers with AI infrastructure designed to automate operational processes and allow teams to focus on sales and client relationships. The platform integrates directly with agency management systems and customer relationship management tools.
The company said its technology can automate tasks such as coverage comparisons, proposal generation, certificates of insurance (COI), ACORD and supplemental form completion, errors and omissions reviews and customer service requests via voice and email AI.
According to Cara, processes that traditionally take around 90 minutes manually can be completed in roughly two minutes using its AI-driven workflows.
The company was founded by Vic Yeh, Nikhil Kansal and Jonathan Patel, former operators from Blend Labs, Stripe and Strategy&, who previously built and sold a digital insurance brokerage before turning their internal technology into a commercial platform.
RIIG Technology closes $6m Series A funding round
RIIG Technology, the AI automation company operating under the HOOTL™ (Humans Out of the Loop™) brand, has closed a Series A financing round exceeding $6m.
The raise was backed by a mix of family offices, a publicly listed entity, and high net worth individuals.
Proceeds will primarily be directed towards scaling HOOTL™’s AI-powered healthcare insurance platform, which is built to streamline verification, validation, and claims adjudication processes for healthcare providers.
The company’s dental solution is already live, with integrations spanning leading practice management systems including OpenDental and Dentrix Cloud, alongside further integrations in development.
Alongside its healthcare push, RIIG™ is readying a new suite of field service management tools aimed at the roofing sector, drawing on its existing automation and analytics infrastructure to drive better operational efficiency and decision-making for field-based businesses.
The funding will also support the establishment of an AI Centre of Excellence, anchored by the acquisition of an NVIDIA DGX B300 system. This infrastructure is intended to underpin the development of in-house models and analytics spanning healthcare data processing, computer vision for existing exchange-listed clients, and drone-enabled services.
Eleos Life raises $3m from Mercurius Media Capital
InsurTech Eleos Life has secured $3m in capital from Mercurius Media Capital (MMC), a US-based media-for-equity venture fund, to accelerate brand awareness and customer acquisition across the United States.
The investment will give Eleos access to national advertising inventory across television, digital and cinema channels, allowing the company to expand its presence without using traditional venture funding to finance marketing campaigns.
MMC operates a media-for-equity model, providing advertising inventory through partners including Sinclair Broadcast Group, TelevisaUnivision and Atmosphere TV in exchange for equity stakes in portfolio companies.
Eleos launched its US business in 2025 and is focused on simplifying life insurance through fully digital applications for term life and disability cover that take minutes to complete and do not require a medical exam.
The InsurTech already operates in the UK, where it embeds insurance into digital journeys offered by banking and FinTech partners. Through more than 10 platform integrations, Eleos currently reaches close to five million consumers.
Felix lands $1.7m to scale legal and finance automation
Felix (felix.so), an AI workflow platform built for legal, finance, and insurance professionals, has raised $1.7m in pre-seed funding to expand its product capabilities and scale its growth.
The round was led by XYZ Venture Capital, with participation from angel investors including current and former leaders and founders at Amazon, Apple, Palantir, FlexPort, Yelp, and Midjourney.
Felix allows professionals in highly regulated industries to convert institutional knowledge into automated workflows that need only be built once.
Users describe their desired process in plain language, and the platform automatically deploys code to execute the workflow continuously, complete with built-in checkpoints, audit trails, and deterministic outputs. Unlike foundation models such as GPT or Claude, which produce probabilistic outputs that vary with each prompt, Felix converts multi-step workflows requiring judgement into scalable automations that produce the same output from the same input every time — a key requirement for industries where decisions carry legal, financial, or regulatory consequences.
The platform also limits where AI is used within each workflow, reducing cost and increasing reliability for high-volume operations by applying AI reasoning only at steps that require interpretation, with the remainder executed as structured code.
Travel InsurTech Insurteam bags $1.3m to scale
Swiss InsurTech startup Insurteam, which automates sales and claims management for the travel insurance sector, has completed a $1.3m funding round aimed at driving its expansion across Europe, according to VentureLab.
The fresh capital is earmarked for scaling the company’s MGA operations throughout the continent. The raise will enable Insurteam, a former Venture Leaders Fintech participant, to bring insurance products to market that are fully underpinned by its own proprietary technology.
At the core of Insurteam’s offering is a platform that harnesses artificial intelligence, data analytics, and multichannel communication to handle both sales and claims processing automatically. The technology can reduce claim management costs for insurers by up to 80% and shrink processing times from several weeks to just minutes.
Working through a B2B2C model, the company partners with online travel agencies, tour operators, and wholesalers, supporting them in managing insurance products while driving improvements in both efficiency and customer satisfaction. Its platform has already served more than 100,000 customers, with operations live in Italy, the Netherlands, and the DACH region.
Established in 2024, Insurteam has grown its headcount from two to ten and has set up MGA operations in Dublin, Ireland. The business more than doubled its revenues in 2025 and expects to maintain a similar pace of growth into 2026, supported by a pipeline of contracts already in place.
Openly boosts expansion plans with funding and Allianz Re deal
Openly, a tech-enabled homeowners insurance provider, has secured a growth investment round led by existing investors Eden Global Partners, Advance Venture Partners and Gradient, with strategic participation from Allianz X.
The company has also expanded its long-term reinsurance partnership with Allianz Re as it looks to accelerate its growth across the US homeowners insurance market.
The combined investment and reinsurance support are intended to strengthen Openly’s balance sheet and enable further expansion, as independent agents increasingly seek technology-driven carriers with strong underwriting capabilities.
Founded in 2017, Openly focuses exclusively on the independent agent channel, offering a platform designed to deliver fast quoting and tailored homeowners insurance coverage.
The company said the funding will support expansion into additional states, deepen agent partnerships and broaden its product offering.
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