Which insurtech startups raised funds?

This blog post has been written by the person who has mapped the insurtech funding market in a clean and beautiful presentation

The insurtech sector just experienced a dramatic turnaround after navigating through 2024's funding winter.

Following a challenging 2024 with the lowest funding levels since 2018, Q1 2025 delivered a stunning 90.2% surge in global insurtech investments, signaling renewed confidence in AI-powered insurance innovation and operational efficiency solutions.

And if you need to understand this market in 30 minutes with the latest information, you can download our quick market pitch.

Which insurtech startups raised funding in 2024 and 2025 so far?

The insurtech funding landscape featured distinct leaders across both years, with AI-powered companies dominating the largest rounds.

Altana AI led 2024 with a $200 million Series C round, achieving unicorn status with a $1 billion valuation through its AI platform that analyzes supply chain data for risk assessment. Alan, the French health insurance platform, secured $193 million in Series C funding, while Akur8 raised $120 million for its transparent AI-powered insurance pricing platform.

Other notable 2024 raises included Zing Health ($140M), Devoted Health ($112M), and Hyperexponential ($73M), demonstrating strong investor appetite for health insurance technology and underwriting automation. Assured achieved remarkable success with a 31.5x valuation step-up to reach unicorn status, focusing on claims processing automation.

Q1 2025 saw Quantexa top the charts with a $175 million Series F round at a $2.6 billion valuation, led by Teachers' Venture Growth and British Patient Capital. Openly raised $123 million in Series E funding for premium homeowners insurance, while Instabase secured $100 million in Series D for document processing automation. The quarter featured three mega-rounds exceeding $100 million, marking only the second time since Q4 2022 that three or more such deals occurred in a single quarter.

Need a clear, elegant overview of a market? Browse our structured slide decks for a quick, visual deep dive.

How much total funding was raised by the insurtech sector in 2024 and in 2025 to date?

The insurtech sector experienced a tale of two periods: 2024's recalibration followed by 2025's dramatic rebound.

Global insurtech funding reached $4.25 billion across 344 deals in 2024, representing a 5.6% decline from $4.51 billion in 2023 and marking the lowest annual total since 2018. Deal volume fell more sharply with an 18.5% year-over-year decline from 422 deals in 2023. This contraction reflected broader market caution amid macroeconomic uncertainties, higher interest rates, and geopolitical tensions.

However, Q1 2025 delivered a stunning reversal with global insurtech funding surging 90.2% quarter-over-quarter to $1.31 billion, representing the highest quarterly total since Q3 2022. This "insurtech spring" was primarily driven by strong performance in property and casualty (P&C) insurtechs, which raised $1.13 billion during the quarter alone.

The sector showed signs of maturation in 2024 with seven mega-rounds exceeding $100 million, collectively raising $1.1 billion and primarily concentrated in Q3 2024. Despite the overall funding decline, the median deal size for early-stage startups increased 52% year-over-year to $3.8 million, indicating investors' focus on quality over quantity.

If you want fresh and clear data on this market, you can download our latest market pitch deck here

Which insurtech startups raised the most capital, and in what rounds?

The largest funding rounds reveal clear patterns around AI adoption and operational efficiency solutions across different company stages.

What do these funded insurtech startups actually do, and what market gaps are they addressing?

Funded insurtechs primarily focus on solving critical operational inefficiencies and emerging coverage needs that traditional insurers struggle to address effectively.

Claims processing automation represents a major focus area, with companies like Assured achieving unicorn status through solutions that streamline claims workflows and reduce processing times. These platforms use AI to automate damage assessment, document processing, and fraud detection, significantly reducing the time from claim filing to resolution.

Underwriting enhancement solutions like Federato and Gradient AI provide real-time risk assessment and portfolio optimization tools. These platforms integrate multiple data sources to improve pricing accuracy and reduce underwriting cycles from weeks to minutes. Akur8's transparent AI-powered pricing platform exemplifies this trend by making complex pricing algorithms more explainable and compliant with regulatory requirements.

Emerging coverage areas drive significant innovation, particularly in climate risk management where companies develop parametric insurance products and catastrophe modeling tools. Cyber insurance represents another growth area, with startups creating risk assessment platforms that help insurers understand and price cybersecurity risks in real-time. Embedded insurance solutions integrate coverage into digital platforms and e-commerce experiences, expanding accessibility and reducing friction in the purchasing process.

Looking for the latest market trends? We break them down in sharp, digestible presentations you can skim or share.

Who are the main investors backing these insurtech startups, and which firms are showing up repeatedly?

Corporate venture capital dominates the insurtech investment landscape, with reinsurance and insurance companies making 150 deals in 2024 compared to 107 in 2021.

Munich Re Ventures leads corporate investor activity with significant investments in AI and climate risk solutions, consistently appearing in major funding rounds. MS&AD Ventures and American Family Ventures maintain highly active strategic investment programs, focusing on technologies that complement their core insurance operations.

Among traditional venture capital firms, Anthemis Group and Markd tied for the most active positions with 10 investments each in 2024, demonstrating sustained commitment to the sector. Portage Ventures led in new investments, particularly focusing on the Canadian market where regulatory frameworks favor innovation. Teachers' Venture Growth emerged as a significant player with their lead investment in Quantexa's $175 million Series F round.

The shift toward corporate venture capital reflects strategic investors' desire to access cutting-edge technologies while startups benefit from industry expertise and potential partnership opportunities. This trend indicates the sector's maturation as corporations increasingly view insurtech investments as essential for competitive positioning rather than experimental ventures.

Are any major insurance companies, tech giants, or financial institutions participating in these investments?

Major incumbents across insurance, technology, and financial services actively participate through direct investments, strategic partnerships, and acquisitions.

Munich Re's $2.6 billion acquisition of Next Insurance represents the largest strategic move, demonstrating how traditional reinsurers acquire mature insurtech companies to accelerate digital transformation. Guidewire's acquisition of Quantee showcases how established software providers enhance AI capabilities through strategic acquisitions.

Tech giants participate primarily through partnerships and minority investments rather than direct acquisitions, focusing on companies that can integrate with their cloud platforms and data analytics services. Financial institutions like British Patient Capital co-led Quantexa's funding round, indicating growing interest from government-backed investment vehicles in supporting insurtech innovation.

Traditional insurance companies increasingly establish dedicated venture arms to systematically invest in emerging technologies. These strategic investments often include board seats and technology integration agreements, creating pathways for eventual acquisitions or deep partnerships. The trend reflects recognition that internal innovation alone cannot match the pace of technological advancement achieved by focused startups.

If you want to build or invest on this market, you can download our latest market pitch deck here

What specific technologies, platforms, or R&D breakthroughs are being financed with these funds?

Artificial intelligence dominates technology investments, with AI-centered companies capturing 61.2% of Q1 2025 funding totaling $710.86 million across 60 deals.

Machine learning and predictive analytics receive the largest share of R&D funding, focusing on advanced algorithms for risk modeling, pricing optimization, and customer segmentation. These platforms process vast datasets from IoT devices, satellite imagery, and social media to create more accurate risk profiles than traditional actuarial methods.

Computer vision technology attracts significant investment for automated damage assessment, property inspection, and claims processing. These systems analyze photos and videos to estimate repair costs, detect fraud, and streamline field inspections, reducing claims processing time from weeks to hours.

Natural language processing development focuses on enhanced customer service, document processing, and regulatory compliance. Generative AI adoption accelerated significantly, with 76% of US insurers integrating these solutions into operations by 2024. API-first architecture development enables seamless integration with existing insurance infrastructure, while cloud-native solutions support rapid scaling and global deployment.

Planning your next move in this new space? Start with a clean visual breakdown of market size, models, and momentum.

Which countries or regions are most active in insurtech funding right now?

North America maintains clear dominance with approximately 35% of global insurtech funding, led by the United States which increased its share to 58.8% of global deals in Q1 2025.

The United States strengthened its position significantly, achieving the highest deal share since Q3 2017 at 58.8% in Q1 2025. This dominance reflects robust venture capital ecosystems, favorable regulatory environments for innovation, and strong partnerships between incumbents and startups. Major funding hubs include Silicon Valley, New York, and emerging centers like Austin and Miami.

Europe captures roughly 25% of global funding, with strong performance from the UK, France, and Germany. French insurtech funding surged 3x in 2024 as investors prioritized higher-value deals, while the UK benefits from regulatory sandboxes and established financial services expertise. Germany shows particular strength in B2B insurance technology and industrial IoT applications.

Asia Pacific faces significant challenges with Southeast Asia's insurtech funding plunging 61% to $193 million in 2024 from $495 million in 2023. However, India emerged as Asia's leading insurtech hub, securing over one-third of Asian deals in 2024. Singapore remained the leading funding recipient in Asia with $135 million, followed by Jakarta with $50.5 million, while China led specific segments like life insurance recovery.

What were the terms or conditions of the major funding rounds—valuation, equity, convertible notes, etc.?

Early-stage funding reached a nearly five-year low in Q1 2025, with average deal sizes falling to $3.71 million, while late-stage companies continued attracting significant capital with robust valuations.

Altana AI's $200 million Series C round achieved unicorn status with a $1 billion valuation, representing strong investor confidence in AI-powered supply chain risk assessment. Quantexa's $175 million Series F round at a $2.6 billion valuation demonstrates how mature companies command premium valuations when showing clear paths to profitability.

Series B and C companies drove funding stabilization, approaching pre-pandemic levels and indicating market confidence in breakout-stage startups. The median deal size for early-stage startups increased 52% year-over-year to $3.8 million, reflecting investors' focus on quality over quantity and higher capital requirements for AI development.

Despite funding constraints, valuations across all stages surged in 2024, signaling strong investor confidence in the sector's long-term potential. Companies demonstrating clear unit economics and operational efficiency commanded premium valuations, while those without proven business models faced significant down-rounds or struggled to raise capital entirely.

If you need to-the-point data on this market, you can download our latest market pitch deck here

Are there any noticeable trends in investor profiles, such as VCs vs. strategic corporate investors?

Corporate venture capital increasingly dominates the insurtech investment landscape, fundamentally shifting the investor composition toward strategic rather than purely financial motivations.

Strategic investors made 150 deals in 2024 compared to 107 in 2021, representing a 40% increase in corporate participation. This shift reflects incumbents' recognition that partnerships and acquisitions often provide better technology integration than internal development efforts.

Traditional venture capital firms maintain significant presence but increasingly syndicate deals with corporate investors to provide startups with both capital and industry expertise. Anthemis Group and Markd's 10 investments each in 2024 demonstrate how specialized VC firms maintain deal flow through deep sector knowledge and extensive networks.

Government-backed investment vehicles like British Patient Capital participate in larger rounds, providing patient capital that complements private investor urgency for returns. This trend indicates growing recognition of insurtech's strategic importance for national economic competitiveness and financial system stability.

Wondering who's shaping this fast-moving industry? Our slides map out the top players and challengers in seconds.

What can be expected in terms of insurtech investment trends and momentum for 2026?

The insurtech sector appears to be entering a phase of sustainable growth after the volatility of 2022-2024, with several key trends shaping the investment landscape.

Continued AI dominance will focus increasingly on explainable AI and regulatory compliance as governments implement stricter oversight of algorithmic decision-making in insurance. Investors will prioritize companies that can demonstrate not just AI effectiveness but also transparency and fairness in their automated systems.

Consolidation trends will accelerate as mature startups pursue acquisitions or prepare for IPO activity. Strategic acquisitions are expected to increase as incumbents seek to acquire proven technologies and customer bases rather than compete with well-funded disruptors. This will create significant exit opportunities for early investors while providing startups with the scale needed for global expansion.

Geographic expansion into underserved markets will gain momentum, particularly mobile-first solutions in emerging markets where traditional insurance penetration remains low. Agentic AI platforms represent the next evolution beyond current AI tools, enabling autonomous systems to work alongside human teams for complex underwriting and claims decisions.

Which insurtech companies should be watched closely for either acquisition, IPO, or rapid growth next?

Several categories of companies present compelling opportunities based on their funding trajectories, market positioning, and technological advantages.

AI-native companies like Altana AI, Akur8, and Gradient AI demonstrate clear revenue traction and technological moats that make them attractive for both strategic acquisitions and potential IPO preparations. These firms benefit from first-mover advantages in AI application and established customer relationships with major insurers.

B2B platform leaders including Quantexa, Hyperexponential, and Instabase show strong enterprise adoption and expansion potential. Their software-as-a-service models provide recurring revenue streams and high switching costs that appeal to growth-focused investors. Slide specifically targets a $2.12 billion valuation in its upcoming US IPO, representing a significant test of public market appetite for insurtech companies.

Regional champions like Zopper in India and Bolttech in Southeast Asia dominate local markets with expansion ambitions. These companies benefit from deep local market knowledge while building platforms that can potentially expand into adjacent geographic regions. Companies with proven technology but facing funding constraints may become attractive acquisition targets for legacy insurers seeking digital transformation capabilities, technology giants expanding into financial services, or private equity firms pursuing insurtech consolidation strategies.

Conclusion

Sources

1. Free Writings Law
2. Insurance Business Magazine
3. Reinsurance News
4. Genasys Tech
5. CB Insights
6. Crowdfund Insider
7. Gallagher Re
8. CB Insights Top Insurtech
9. MAPFRE Insights
10. Fintech Global
11. Risk & Insurance
12. Insurance Business P&C
13. Digital Insurance
14. Gallagher Re Q4
15. Be Insure
16. Qubit Capital
17. Roots Analysis
18. Insurtech Digital
19. Fintech Global France
20. TechNode Global
21. Asian Business Review
22. Fintech Global India
23. Be Insure Investors