Now, our Book of Scouting Reports offers in-depth analysis on every single one of the 2025 Insurtech 50 winners, from homeowners insurance to value-added services.

Combining CB Insights’ proprietary data and AI, scouting reports provide insight into each company’s:

• Funding history
• Headcount
• Key takeaways
• Commercial Maturity score
• Mosaic score

Download the book to see all 50 scouting reports.

For information on reprint rights or other inquiries, please contact reprints@cbinsights.com.

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Now, our Book of Scouting Reports offers in-depth analysis on every single one of the Fintech 100 winners, from crypto payments infrastructure to embedded finance.

Combining CB Insights’ proprietary data and AI, scouting reports provide insight into each company’s:

• Funding history
• Headcount
• Key takeaways (including opportunities and threats)
• Commercial Maturity score
• Mosaic score

Download the book to see all 100 scouting reports.

The post Book of Scouting Reports: 2025’s Fintech 100 appeared first on CB Insights Research.

CB Insights has unveiled the 2025 Insurtech 50 list of the world’s most promising insurtech startups. The winners have a success probability among the global top 3% of private companies, signaled by a median CB Insights’ Mosaic score of 734 out of 1,000 (as of 9/30/2025). This benchmark is important because broader forces — such as AI agent commercialization and extreme weather events — influence the industry’s tech and underwriting considerations.

The 2025 Insurtech 50 includes 27 insurers and intermediaries and 23 tech vendors, which have collectively raised $3.6B in funding. 60% of the winners are early-stage insurtechs, a 20-percentage point increase from last year’s list. Nearly three-quarters of the winners were not in business at the start of the decade, signaling the opportunity for new entrants to shape the industry’s innovation landscape.

Utilizing CB Insights’ Strategy Terminal, the 50 winners were selected based on several factors, including CB Insights’ data and predictive signals on deal activity, industry partnerships, investor strength, hiring momentum, and outlook indicators like Commercial Maturity and Mosaic Scores. We also reviewed Analyst Briefings submitted directly to us by startups, and leveraged Scouting Reports powered by CB Insights’ Team of Agents.

Below, we map out the 50 winners, classifying them across 16 categories based on their core offering.

Please click to enlarge.

CBI customers: Get data on the winners

Key takeaways

1. Small and mid-sized businesses fuel growth opportunities for most insurers and intermediaries. 

The winners include 13 insurtechs in the commercial category and 6 in the health and benefits category, which are primarily focused on small and mid-sized businesses (SMBs).

Most commercial-focused insurtechs offer coverage for specific SMB segments, like a16z-backed District Cover, which serves small businesses based in cities. Proactive risk management is also a focus for some of these companies. For instance, CompScience uses computer vision technology to reduce the likelihood of workplace injuries that could lead to workers’ compensation claims.

Four of the insurtechs in the health and benefits category are ICHRA (individual coverage health reimbursement arrangement) platforms: Stretch Dollar, Thatch, Venteur, and Zorro. ICHRA is an alternative to traditional employer-selected health plans in the US, where employers instead allocate money for their employees to select their preferred qualified plan individually. These plans are particularly attractive to SMBs. Chris Ellis, Founder and CEO of Thatch, highlighted the benefits for both employees and employers with us:

“…with Thatch, a defined contribution, employees get to choose [what] works best for them. It’s easier for employees to manage [and] it’s easier for employers to administer.”

Broadly, the ICHRA platforms market has seen favorable market development over the past year, with Mosaic scores (success probabilities) for market leaders steadily increasing.

2. Many tech vendors build products for insurers seeking to deploy AI agents. 

AI agents are a widespread focus among tech vendors, which are loosely mapped across the insurance value chain — distribution, underwriting, operations, and claims. Examples of AI agent-focused companies include:

• Quandri, which offers AI agents to support insurance agency renewals.
• Sixfold, whose agents include an underwriting referral agent in October 2025.
• PenguinAi, a platform for payers (and providers) founded by the former Chief Data Officer of Kaiser Permanente and UnitedHealthcare.
• Elysian, a claims TPA with a focus on AI agent orchestration.

Workflow improvements to support decision-making are the primary focus for agentic AI deployment among the winners. Kasey Roh, US CEO of Upstage, shared the company’s near-term objective:

“Over the next 12 months, our focus is expanding [the] AI space from document extraction to workflow automation, transforming every step from intake and classification to data extraction, generation, and insight delivery through an agentic workflow.”

The focus on AI agents aligns with insurance companies’ broader appetite for the technology, with AIG Chairman and CEO Peter Zaffino repeatedly highlighting the company’s “agentic ecosystem” as an example on earnings calls. Broadly, revenue opportunities for AI agents are increasing for tech vendors, and the market momentum spans industries. For instance, professional services firms like Accenture, KPMG, and McKinsey are actively forming agentic AI partnerships. 

3. Personal lines P&C trails commercial among the winners.

Just 7 Insurtech 50 winners have a primary focus on P&C personal lines. 4 of the companies are focused on homeowners insurance:

• Delos, a California-based managing general agent with differentiated wildfire risk models.
• Eventual, whose “Premium Lock” product offers reimbursement for potential premium increases.
• Faura, which offers models to support underwriting for climate- and weather-related risks.
• Sola, which offers parametric insurance for wind and hail events.

Otherwise, Faye is focused on travel insurance while Quandri is focused on insurance agencies. Just one company — State Farm Ventures-backed InsureVision — focuses on auto.

Broadly, auto and homeowners insurance face the greatest affordability pressure across P&C lines of business, so startups with differentiated, strong solutions in these spaces — like the Insurtech 50 winners — face favorable market conditions. As an example, Matt Perlman, Partner at IA Capital Group, notes Delos’ market strength:

“Delos brings a true paradigm shift in using advanced data analytics to understand wildfire behavior, not based solely on historical occurrence but dynamically as conditions change on the ground. … Their performance in the highly dislocated California market speaks for itself, and they have gained the trust of capital markets, rating agencies, and regulators as an innovator on behalf of homeowners and businesses in California and beyond.”

The 2024 Insurtech 50: Where are they now?

In the 12 months since publication, the 2024 Insurtech 50 winners posted notable accomplishments, including:

• 15 equity funding rounds.
• $422M in equity funding (i.e., 9% of global insurtech funding).
• 26% median headcount growth, directly resulting in 1,600+ new jobs.
• 4 exits — Accelerant, Bowtie, EvolutionIQ, and Next Insurance.
• 21-point increase in median Mosaic scores.

Mosaic scores from the 2025 Insurtech 50 winners

For information on reprint rights or other inquiries, please contact reprints@cbinsights.com.

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Rohit Verma, President & Chief Executive Officer of Crawford & Company, shares executive insights on insurance affordability.

A few months ago, I sat down to review my monthly expenses and was stunned. My auto insurance premium had climbed over 30%, and my home insurance has almost doubled since the start of the pandemic. These aren’t discretionary expenditures — they’re essential protections. Friends and colleagues have shared similar stories, some even seeing insurance costs exceed their monthly mortgage payments, a shift unimaginable just a few years ago. One friend recently asked me, “Where is this going? Are we heading toward a future where insurance becomes unaffordable for the average household?”

In recent years, insurance rates have increased considerably, largely due to severe property losses from wildfires, storms, and hurricanes. Social inflation is also straining the industry. These pressures have forced carriers to raise deductibles and prices; trends reflected in property loss ratios. Necessary to maintain industry stability, these actions have also burdened policyholders, challenging affordability and accessibility, and intensifying financial strain. Crawford adjusters witness how today’s risk environment challenges insurance’s core purpose: transferring risk from insured to insurer.

Thankfully, recent reinsurance renewals suggest relief may be on the horizon, barring major catastrophes. As these dynamics unfold, we expect pricing and deductibles to ease, leading to normalization in the next 12 to 18 months. However, current premiums aren’t sustainable, and the industry must act now to support customers through this period.

This short-term relief opens a critical window to implement more sustainable solutions, like enhanced technology adoption, resilient rebuild strategies, and stronger safeguards against legal exposure and fraud. Smarter technology use, resilient rebuilding, and proactive stances against damaging practices offer meaningful progress toward stability, though none are quick fixes.

Technology is a vital lever to alleviate cost pressures and improve the insurance experience as the market normalizes. Advanced solutions, such as agentic AI, predictive analytics, and AI-powered risk insights, are already transforming insurance. These technologies streamline workflows, enable faster, more accurate estimates, and help insurers proactively manage risks.

These innovations go beyond efficiency; they reshape the customer experience. Policyholders benefit from faster claims resolution, more transparent communication, and tailored risk management. Leveraging real-time data and automation, insurers deliver responsive, personalized service, restoring trust and confidence, even amid market pressures.

This report, developed with CB Insights and Crawford & Company, offers a data-driven roadmap for addressing affordability. By analyzing tech momentum and affordability across nine P&C lines, we pinpoint where technology most effectively reduces loss costs and benefits policyholders. Findings show targeted adoption of advanced tech, especially in cyber, homeowners, and auto, delivers the greatest impact.

I encourage all of us as industry stakeholders to use this insightful report to explore investments, partnerships, and solutions. Together, we can build a more resilient insurance ecosystem — keeping coverage accessible, affordable, and customer-centric for all.

Rohit Verma
President & Chief Executive Officer
Crawford & Company

Overview

Insurance coverage is becoming increasingly unaffordable for businesses and consumers, with loss costs rising rapidly due to factors like extreme weather, labor shortages, and supply chain disruptions.

To improve affordability, insurance companies must prioritize innovative ways to deploy technology across loss prevention efforts. While technology alone is not enough to improve affordability, it offers the most tangible opportunities to lower costs.

Below, we identify top tech-driven loss prevention opportunities to improve insurance affordability across nine P&C insurance lines of business. We rank these opportunities across two axes:

• Tech momentum assesses startup ecosystem strength and tech applicability across a line of business. We measure tech momentum using CB Insights’ datasets such as deal activity, company headcount, and our proprietary Commercial Maturity — which measures a private company’s ability to compete or partner — and Mosaic scores — which measure the overall health and growth potential of private companies.
• Affordability pressure assesses the impact of loss cost increases for policyholders across a line of business. We evaluate affordability pressure by surveying Crawford & Company’s global claims experts, coupled with CB Insights’ Public Company Financials data.

Key takeaways: Opportunities with the greatest potential impact

1. Cyber leads in startup momentum, offering insurers the richest landscape of tech innovation to improve affordability.
2. Homeowners’ insurance faces the greatest affordability pressure, making it the most urgent line for loss-prevention technologies despite limited ready-made solutions.
3. Commercial and personal auto face an innovation gap, with high affordability pressure but low startup momentum — requiring insurers to carefully vet and selectively scale emerging solutions.

1. Cyber leads in startup momentum, offering insurers the richest landscape of tech innovation to improve affordability.

Cyber insurance faces only moderate affordability pressure, primarily from data breaches and hacks, compared to other lines like auto and homeowners that are more exposed to medical costs, materials shortages, and natural catastrophes (NatCats). What makes cyber unique is that leading players such as Coalition (an insurtech unicorn with $300M+ in revenue in 2024) actively embrace technology to prevent and reduce losses at scale.

Because the line is inherently tech-centered, nearly every new entrant presents a potential opportunity to lower loss costs. Risk management practices within cyber have generally reduced claims severity, as noted by Greg Smith, President, Canada at Crawford & Company:

“A larger number of smaller cyber claims are reducing severity, as is a more disciplined focus on underwriting and loss control in this space. Loss ratios for cyber lines in Canada have improved significantly in recent years because of improved underwriting and risk management.”

Between July 2022 and June 2025, cyber-focused startups completed more than 2,500 deals of at least $100K in funding, more than any other line of business analyzed. With a median CB Insights’ Mosaic score (success probability) of 615 out of 1,000, cyber startups tie general liability for the highest score across the 9 lines of business.

This surge of new entrants reflects rising enterprise concerns around AI security, which has spiked in executive commentary since the release of ChatGPT in late 2022. For example, Knostic, founded in 2023 and recently doubling its headcount from 22 to 44, helps enterprises identify and mitigate large language model data leakage risks.

Looking ahead, as individuals and businesses increasingly adopt AI, advanced cyber risk detection and rapid response capabilities will become critical. Insurance companies should prioritize evaluating partnerships with cyber startups or building comparable in-house capabilities to pass affordability gains onto policyholders.

2. Homeowners’ insurance faces the greatest affordability pressure, making it the most urgent line for loss-prevention technologies despite limited ready-made solutions.

Homeowners’ insurance experienced the steepest estimated loss ratio increases among all business lines analyzed, coinciding with rate increases spurred by natural catastrophes (NatCats). Survey respondents also pointed to fraud, labor shortages, and materials shortages as amplifying factors.

Reducing loss costs within homeowners’ insurance will depend on consistent data availability for individual homes and surrounding communities, as noted by Tim Butler, Head of Contractor Connection & CRD, Australia at Crawford & Company:

“For quite a number of years, there has been consistent talk of preventative measures in the form of water pressure meters and standard home tech. Unfortunately, it appears adoption of this technology remains an uphill effort. There is, however, an increase in the use of data available, which appears to be creating more consistency around loss cost.”

While more than 1,900 startup deals touch the homeowners’ space, many of these products were not designed specifically for insurers, requiring carriers to actively identify and adapt external technologies for loss prevention.

For example, Atmosic is developing low-power Internet of Things (IoT) charging infrastructure that insurers could implement via homeowner-provided sensors. Homeowners could receive these sensors at the start of hurricane season, ensuring extended power to generate data on risks that could result in a costly claim.

Beyond sensors, insurance companies should also eye non-traditional data and risk engineering methods to improve affordability. For instance, Figure, a humanoid robotics company founded in 2022 and backed by Bezos Expeditions, Microsoft, NVIDIA, and OpenAI, is targeting household deployments. In the future, humanoid robots could proactively maintain homes, generate maintenance data, and provide insurers with differentiated insights to mitigate loss risks.

Looking ahead, affordability improvements in homeowners’ insurance will require a broad set of technologies that support both loss control and proactive risk management. NatCat events, in particular, will continue to stress the market, presenting increasingly pressing needs to reduce loss costs to the greatest extent possible.

3. Commercial and personal auto face an innovation gap, with high affordability pressure but low startup momentum — requiring insurers to carefully vet and selectively scale emerging solutions.

Commercial and personal auto rank lowest in tech momentum across all lines of business analyzed. Many of these startups are in the electric vehicle space, a sector now facing market headwinds with reduced executive attention and a pullback in dealmaking.

Despite weak innovation supply, both auto lines remain under high affordability pressure, second only to homeowners. Survey participants cited macro-economic factors such as rising materials costs and social inflation as primary contributors to worsening claim trends, with Steve Blakemore, Managing Director, U.S. Loss Adjusting at Crawford & Company, noting:

“Cost of materials and specialized repair processes to include aluminum bodies and e-vehicles have increased significantly beyond affordable deductibles.”

Technology opportunities for loss prevention exist, but they require disciplined evaluation — and need to extend beyond established telematics capabilities. For example, AtoB is a payments platform for the trucking industry with investors including Bloomberg Beta and Mastercard. The company’s revenue is projected to reach $100M by the end of 2025.

Coupled with existing data from telematics capabilities, insurance companies could utilize AtoB’s spending data to offer policyholders predictive notifications — for instance, guidance on routes to avoid areas with a higher likelihood of collisions.

Insurance companies should also identify opportunities related to autonomous vehicles, particularly after Waymo’s $5.6B Series C funding round in October 2024. Autonomous vehicle technology offers insurance companies potentially valuable data points that can inform loss prevention strategies as autonomous driving becomes more prevalent.

Looking ahead, improvements to auto insurance affordability through technology will require access to unique data sources that provide differentiated insights into driving risks. Carefully selected tech partnerships can provide insurance companies with access to this data, enabling them to offer policyholders proactive notifications that curb risky actions and prevent costly losses.

Line of business spotlights

Prioritize

Commercial property

Overview: Insurance coverage for business buildings, facilities, warehouses, and commercial real estate against property damage and operational risks.

Insurance Affordability Outlook placement:

• Affordability pressure ranking — 4th
• Tech momentum ranking — 5th

Data highlights:

• Pool of 800+ deals analyzed
  • Median deal size — $10.8M
  • Median current Mosaic score — 563 out of 1,000
  • Most frequently listed current Commercial Maturity — Scaling (level 4 out of 5)
• Survey respondents indicated that commercial property has significant exposure to weather-related natural catastrophes.
• Survey respondents also identified materials shortages and supply chain disruptions as highly relevant factors to commercial property.

Potential startup collaboration: Doss is an AI-enabled enterprise resource planning platform serving industries like construction, manufacturing, and supply chain. The company more than doubled its headcount between July 2024 and July 2025. An insurance company could pursue a partnership with Doss to gain data access to flag supply chain shortage risks that could otherwise lead to costly repairs and restorations.

Construction

Overview: Specialized insurance coverage for construction companies, contractors, and building projects, addressing construction-specific risks including accidents, defects, and site safety.

Insurance Affordability Outlook placement:

• Affordability pressure ranking — 5th
• Tech momentum ranking — 3rd

Data highlights:

• Pool of 1,100+ deals analyzed
  • Median deal size — $4.0M
  • Median current Mosaic score — 562 out of 1,000
  • Most frequently listed current Commercial Maturity Score — “Deploying” (level 3 out of 5)
• Construction has the third-highest tech momentum, indicating ample opportunity for innovation in the space.
• Survey participants indicated the following factors as highly relevant: weather-related natural catastrophes, labor shortages, materials shortages and supply chain disruptions.

Potential startup collaboration: AUAR builds mobile, robotics-powered micro-factories for home construction. The company partnered with industrial giant ABB in 2024 to expand operations in the United States. Given that micro-factories can reduce construction costs due to the potential need for less labor, materials, and transportation, insurance companies could offer AUAR-partnered construction companies less costly premiums.

Cyber

Overview: Insurance coverage against cybersecurity threats, data breaches, and digital risks affecting business operations and customer information.

Insurance Affordability Outlook placement:

• Affordability pressure ranking — 6th
• Tech momentum ranking — 1st

Data highlights:

• Pool of 2,500+ deals analyzed
  • Median deal size — $6.0M
  • Median current Mosaic score — 615 out of 1,000
  • Most frequently listed current Commercial Maturity Score — “Deploying” (level 3 out of 5)
• Cyber has the highest tech momentum, boosted above the others as the line is inherently tech-enabled. Cyber startups have the highest weighted-average score across deals analyzed in the report, and the largest deal count analyzed across the lines of business.

Potential startup collaboration: Lakera is a security platform for genAI applications. The startup has a CB Insights’ Mosaic score among the top 2% of companies globally, and is one of the world’s most-promising AI startups as a 2025 AI 100 winner. Insurance companies could partner with Lakera to offer the company’s tech to support policyholders’ AI agents, identifying and protecting against potential data breach attempts from malicious prompts.

Homeowners

Overview: Personal insurance coverage protects residential properties and personal belongings against property damage, natural disasters, and household risks.

Insurance Affordability Outlook placement:

• Affordability pressure ranking — 1st
• Tech momentum ranking — 7th

Data highlights:

• Pool of 1,900+ deals analyzed
  • Median deal size — $4.2M
  • Median current Mosaic score — 562 out of 1,000
  • Most frequently listed current Commercial Maturity Score — “Deploying” (level 3 out of 5)
• Homeowners’ insurance leads in affordability pressure, with analysis zeroing in on claims severity and loss ratio change (the greatest across lines analyzed) as key pain points.
• Survey respondents indicated that homeowners’ insurance has significant exposure to weather-related natural catastrophes.

Potential startup collaboration: Honey Homes is an on-demand maintenance service currently serving homeowners in California, Illinois, and Texas. Insurance companies could evaluate partnerships with Honey Homes to gain access to trending service requests in localized areas, like upticks in window replacements across older homes. Insurance companies could then derive data-driven signals from those requests to inform preventive action for potentially costly events, such as sending plywood and sandbags to homeowners in a projected hurricane path.

Vet

Commercial auto

Overview: Insurance coverage for vehicles used in business operations, including fleet management, trucking operations, and commercial transportation risks.

Insurance Affordability Outlook placement:

• Affordability pressure ranking — 3rd
• Tech momentum ranking — 9th

Data highlights:

• Pool of 500+ deals analyzed
  • Median deal size — $7.0M
  • Median current Mosaic score — 613 out of 1,000
  • Most frequently listed current Commercial Maturity Score — “Deploying” (level 3 out of 5)
• Commercial auto had the lowest tech momentum ranking due to below-average company scores and deal count.
• Materials shortages, medical costs, and social inflation are key factors in commercial auto claims.

Potential startup collaboration: Outpost offers a network of managed freight terminals, featuring a gate management platform that reviews truck data like license plates and registration numbers using computer vision technology. The company doubled its financial capacity in September 2025 to $1B. Insurance companies could pursue a partnership conversation with Outpost to gain access to gate data for risk modeling purposes.

General liability

Overview: Broad business insurance covering third-party claims for bodily injury, property damage, and operational risks arising from normal business activities.

Insurance Affordability Outlook placement:

• Affordability pressure ranking — 7th
• Tech momentum ranking — 6th

Data highlights:

• Pool of 200+ deals analyzed
  • Median deal size — $6.6M
  • Median current Mosaic score — 615 out of 1,000
  • Most frequently listed current Commercial Maturity Score — “Deploying” (level 3 out of 5)
• Survey responses indicated that general liability is experiencing increased claims severity. Social inflation and increased medical costs are key factors relevant to general liability claims.

Potential startup collaboration: Relay provides communication and location-tracking devices for frontline workers across industries, like entertainment, healthcare, and hospitality. The startup’s headcount has grown rapidly in recent years, with a projected revenue of $100M by 2027. Insurance companies could evaluate offering Relay’s product to business customers, like concert venues and restaurant operators. The tech deployment would support employee responses to potential claims-triggering risks, such as wet floors that could lead to slip and fall incidents.

Inland and ocean marine

Overview: Specialized coverage for goods in transit, commercial equipment, and property that moves between locations or operates in maritime environments.

Insurance Affordability Outlook placement:

• Affordability pressure ranking — 9th
• Tech momentum ranking — 2nd

Data highlights:

• Pool of 900+ deals analyzed
  • Median deal size — $5.3M
  • Median current Mosaic score — 607 out of 1,000
  • Most frequently listed current Commercial Maturity Score — “Deploying” (level 3 out of 5)
• Inland and ocean marine has the second-highest tech momentum, indicating strong opportunities to improve insurance affordability — despite the lowest pressure to improve affordability across all lines of business assessed.
• Survey respondents indicated the following factors as relevant: fraud, labor shortages, materials shortages and supply chain disruptions, and weather-related natural catastrophes.

Potential startup collaboration: Altana AI is a supply chain intelligence platform backed by Google Ventures and Salesforce Ventures, and — as a CB Insights 2024 Insurtech 50 winner — one of the world’s most-promising insurtech startups. The company offers products for business interruption risk and supply chain network planning. Insurance companies could explore Altana AI’s platform to gain visibility into potential supply chain risks and reroute shipments that otherwise face heightened risk for damage or loss.

Personal auto

Overview: Individual insurance coverage for personal vehicles, protecting against accidents, vehicle damage, and liability arising from personal driving.

Insurance Affordability Outlook placement:

• Affordability pressure ranking — 2nd
• Tech momentum ranking — 8th

Data highlights:

• Pool of 900+ deals analyzed
  • Median deal size — $7.3M
  • Median current Mosaic score — 606 out of 1,000
  • Most frequently listed current Commercial Maturity Score — “Deploying” (level 3 out of 5)
• Personal auto has the second-highest affordability pressure among lines of business analyzed, primarily due to loss ratio change estimates.
• Startups relevant to personal auto ranked the lowest in momentum due to a low weighted average score.
• Survey respondents indicated challenges around claims severity.

Potential startup collaboration: NoTraffic is a traffic management company that offers IoT devices to collect data at intersections and an AI platform to support traffic optimization decisions. NoTraffic is a NVIDIA partner and previously participated in the NVIDIA Inception Program. Insurance companies could evaluate partnerships with NoTraffic to support deployments that could reduce traffic accidents and lower claims costs.

Workers’ compensation

Overview: Mandatory insurance providing medical benefits and wage replacement for employees injured on the job, covering workplace accidents and occupational hazards.

Insurance Affordability Outlook placement:

• Affordability pressure ranking — 8th
• Tech momentum ranking — 4th

Data highlights:

• Pool of 100+ deals analyzed
  • Median deal size — $5.0M
  • Median current Mosaic score — 581 out of 1,000
  • Most frequently listed current Commercial Maturity Score — “Deploying” (level 3 out of 5)
• Survey participants generally viewed medical cost increases and social inflation as relevant to workers’ compensation insurance.

Potential startup collaboration: Protex AI offers a computer vision product that gives customers visibility into workplace risks (like speeding forklifts in warehouse environments) to prompt intervention by environment, health, and safety teams. DHL and Marks & Spencer are among Protex AI’s customers. Insurance companies could seek a partnership with Protex AI to offer the platform to policyholders facing elevated risks for workers’ compensation claims, like manufacturers and warehouse operators, due to workplace injuries.

Monitor

No lines of business fall within this category.

Methodology

The insurance affordability outlook provides an informational visual framework for insurance leaders to identify opportunities to improve insurance affordability for policyholders.

The opportunities encompass potential tech deployments for loss prevention and response across 9 lines of business: commercial auto, commercial property, construction, cyber, general liability, homeowners, inland and ocean marine, personal auto, and workers’ compensation.

The resulting visual plots the lines of business relative to one another across 3 categories:

1. Monitor — Lines of business with lower signals to warrant investment in tech to support insurance affordability. Insurance leaders should track developments in this space for future consideration.
2. Vet — Lines of business with moderate signals to warrant investment in tech to support insurance affordability. Insurance leaders should evaluate potential partnerships and tech deployment, pursuing the most-promising opportunities as innovation activities.
3. Prioritize — Lines of business with strong signals to warrant investment in tech to support insurance affordability. Insurance leaders should prioritize partnerships and tech deployments to operationalize.

Calculations across 2 axes — tech momentum and affordability pressure — guide plotting for each line of business.

Tech momentum

Tech momentum assesses startup ecosystem strength and tech applicability across the 9 lines of business.

This report leverages CB Insights’ AI-enabled deal search to identify 8,900+ venture-backed equity deals of at least $100K across the lines of business between July 1, 2022, and June 30, 2025. Deals were identified based on keywords specific to the lines of business, and some deals were excluded from the analysis. Deals analyzed in this report are not mutually exclusive, although the aggregate total constitutes approximately 9% of venture dealmaking between Q3’22 and Q2’25.

We generate a score for each deal that reflects the company’s momentum within the marketplace. The score uses CB Insights’ data, such as deal activity, company headcount, and proprietary Commercial Maturity and Mosaic scores. We include startups from across the venture landscape, although we assign greater weight to insurtechs given their direct relevance to the insurance market. Weighted average calculation guides the final ranking of the scores and the total number of deals analyzed across each line of business.

Affordability pressure

Affordability pressure evaluates the approximate impact of loss costs on insurance affordability for policyholders across the 9 lines of business.

We leverage 2 different data sources to measure affordability pressure for each opportunity:

• Survey of claims experts — 64 Crawford & Company employees provided directional insights across 160 line of business-specific responses on global loss trends.
• Loss ratio changes among publicly-traded insurers — Loss ratio changes between 2022 and 2024 across a sample of 15 companies: AIG, Allstate, American Financial Group, Arch Capital Group, AXIS Capital, Chubb, Everest Group, GEICO, Mercury General Corporation, Old Republic Insurance Group, Progressive, Selective Insurance, The Cincinnati Insurance Companies, Travelers, and W.R. Berkley. The data points are approximate based on the business mix of each of the 15 companies, and mindful of loss ratio dynamics in recent years due to the potential (or actual) impact of rate and price increases.

The final ranking is guided by the survey outputs and loss ratio change outputs, supported by ChatCBI reasoning leveraging data from across CB Insights’ Business Graph.

Additional notes

CB Insights has provided the information contained in this report for informational purposes only and does not constitute an endorsement or recommendation by CB Insights. Reasonable efforts have been made to ensure the accuracy of the information, and CB Insights makes no representation or warranty, express or implied, as to its completeness or accuracy.

Crawford & Company has not vetted, nor does it endorse, any of the companies or technologies mentioned in this report. These references are illustrative in nature and should be viewed solely as examples rather than recommendations.

The insurance affordability outlook is not an investment analysis, and should not be used to guide financial- or investment-focused decisions, including those pertaining to any insurance company operating across the analyzed lines of business. In addition, the report leverages a non-actuarial analysis and should not be used to discern financial performance (including loss ratio performance) across any lines of business analyzed.

This report is global in scope, although the analysis largely centers on the United States. Regulations and market dynamics differ across geographies, and the report does not account for every nuance across the industry.

We selected the 15 companies for the loss ratio change analysis due to comparable data reporting practices of loss ratio performance on annual reports using CB Insights’ Public Company Financials data. The report uses loss ratios as underlying loss costs are often not reported in a standardized format on annual reports. Loss ratios include loss adjustment expenses and typically spans lines of business. The changes in loss ratios were used to derive signals for lines of business subject to more affordability pressure.

The insurance affordability outlook is not absolute. The insurance industry and broader tech landscapes are subject to constant change, so future developments have the potential to impact the findings presented in this report.

About

Crawford & Company

Crawford & Company® is a leading global provider of quality claims management and outsourcing solutions with an expansive network of experts serving clients in more than 70 countries. Our unique ability to combine innovation and expertise advances our purpose to restore lives, businesses and communities across the globe. For over 80 years, clients have trusted Crawford to care for their customers as a seamless extension of their brand, keeping the focus where it belongs—on people. More information is available at www.crawco.com.

Contact: info@us.crawco.com

CB Insights

Headquartered in New York City, CB Insights is the leading provider of AI for market intelligence. The company aggregates, validates, and analyzes hard-to-find private and public company data. Its powerful AI tells users what it all means to them personally. The world’s smartest companies rely on CB Insights to focus on the right markets, stay ahead of competitors, and identify the right targets for sales, partnership, or acquisition. Visit www.cbinsights.com for more information.

Contact: researchanalyst@cbinsights.com

The post The insurance affordability outlook: Opportunities to alleviate insurance’s affordability problem with technology appeared first on CB Insights Research.

We’ve used generative AI, combined with our proprietary data on these companies and their markets, to create the following scouting reports — in just one click on CB Insights.

CB Insights customers can download the book using the sidebar and track all companies using the Expert Collection.

At the conference, be sure to:

• Visit the ITC Discovery Desk powered by CB Insights to speak with a strategist and receive full SWOT analyses to help determine who to meet and why.
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We recently presented CB Insights’ data on how AI is elevating customer engagement across insurance at an InsurTech NY-hosted executive roundtable.

Here are the key takeaways:

1. It’s early days for AI-enabled customer engagement, so insurance companies have a rare opportunity to define what good looks like.
2. AI-enabled customer engagement will soon be table stakes, accelerating as partner ecosystems emerge and mature.
3. Agentic commerce offers insurance companies opportunities to capture new sales channels.

Download the 40+ slides to reveal insights like:

• Agentic commerce offers a clear opportunity to shape the future of embedded insurance, signaled by the emergence of partnerships with companies like eBay and Priceline.
• A new tech stack now powers agentic operations across industries, and insurance is no exception. AI agent oversight offers an opportunity to support compliance activities.
• AIG’s actions to develop its “agentic ecosystem” signal an imperative for business growth.

CB Insights customers can download the full presentation using the sidebar.

The post How AI is elevating customer engagement in insurance appeared first on CB Insights Research.

Equity funding to drone developers has reached a record $5.5B already this year. More broadly, the drone market is projected to grow from $73.1B in 2024 to $163.6B by 2030, driven by defense spending, more permissive regulations, and AI advances that enable autonomous navigation, real-time object detection, and mission planning without human intervention.

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Individual coverage health reimbursement arrangement (ICHRA)-focused deals nudged L&H deal count upward, in part driving the highest deal share among US-based insurtechs since Q3’17.

Below, we break down the key takeaways from this quarter’s report, including:

• Quarterly insurtech deal count dips below 100 again
• Funding to P&C insurtechs plummets from Q2’21 peak
• $100M+ mega-round deals lead to a surge in L&H insurtech funding
• ICHRA startups capture nearly 20% of insurtech funding
• US-based startups raise 3 in 5 global insurtech deals

Download the full report to access comprehensive data and charts on the evolving state of insurtech.

Quarterly insurtech deal count dips below 100 again

Insurtech deal count fell 9% quarter-over-quarter (QoQ), from 100 deals in Q1’25 to 91 in Q2’25. This decrease mirrors the broader venture environment, which also saw QoQ deal count decline by the same percentage.

Insurtech funding fell 21% QoQ, from $1.4B in Q1’25 to $1.1B in Q2’25 — also in line with the broader venture environment (-24% QoQ). However, unlike the rest of venture, insurtech has not experienced an AI-driven funding boom in recent quarters. The median venture deal size reached a new high of $3.5M in 2025 YTD, largely due to AI, while the median insurtech deal size has fallen by 19% to $4.2M over the same period.

Explore the top 20 AI agent startups by revenue

Future implication: Given investors’ appetite for billion-dollar deals, insurance incumbents should prepare for potential disruption if an AI-focused insurtech secures major funding.

Funding to P&C insurtech falls 89% from Q2’21 peak 

P&C insurtech funding plummeted from $1.2B in Q1’25 to $0.4B in Q2’25, falling well below the quarterly average of $0.8B over the past 2 years. As a result, P&C insurtech funding reached an 8-year low for the quarter (Q3’17 was the last quarter with less P&C insurtech funding).

The decline in P&C insurtech funding comes as no P&C insurtechs raised a Series D+ deal in Q2’25. Comparatively, 3 P&C insurtechs raised $100M+ mega-rounds across Series D+ deals in Q1’25.

P&C insurtech deal count also declined, falling from 72 in Q1’25 to 57 in Q2’25. Just 5 startups raised over half of the quarter’s P&C insurtech funding:

• Ledgebrook, a professional liability MGA ($65M Series C)
• Marshmallow, an auto insurer ($45M Series B)
• Steadily, a landlord insurer ($30M Series C)
• Orus, a small business insurance broker ($29M Series B)
• Reserv, a third-party administrator ($25M Series B)

Even so, the P&C insurtech space did see its first IPO since Q2’24: Florida-based home insurer Slide Insurance completed its IPO at a $2.1B valuation.

Check out Ledgebrook, Reserv, and more 2024 Insurtech 50 winners

Future implication: Despite the broader P&C funding decline, 3 of the top 5 P&C insurtech deals by funding amount in Q2’25 went to startups focused on small and midsize businesses (SMBs) — signaling that targeted growth opportunities within this segment remain attractive to investors.

$100M+ mega-round deals lead to a surge in L&H insurtech funding

L&H insurtech funding surged from $0.2B in Q1’25 to $0.7B in Q2’25, well above the quarterly average of $0.4B over the past 2 years.

Eight of the quarter’s top 11 deals went to L&H insurtechs, including both of the quarter’s $100M+ mega-round deals:

• Gravie, a late-stage benefits platform ($144M Series G, and later amended to $150M in a filing on July 9)
• Bestow, a former insurer that has since pivoted to become a software provider ($120M Series D)

L&H insurtechs raised 32 deals in Q2’25, an increase from 28 in the quarter prior. Unlike P&C insurtech, the median L&H insurtech deal size ($6.0M) is up in 2025 YTD.

69% of L&H insurtech deals went to US-based companies, the highest amount since Q3’15, underscored by a focus on health benefits across the US market.

In addition, L&H insurtech saw its first unicorn since Q2’22 and its first IPO since Q3’22:

• Chapter, a Medicare navigation platform, became the quarter’s only new insurtech unicorn after raising its $75M Series D round at a $1.5B valuation.
• Xiaoyusan Insurance, a broker focused on diversified life and health products, went public.

CBI customers: Use our agents to uncover insights for Chapter

Future implication: As nearly half of the quarter’s top deals by funding amount went to health and benefits-focused startups, insurers should prioritize expanding employer-focused sales channels for the upcoming open-enrollment season.

ICHRA startups capture nearly 20% of insurtech funding

The US federal government established ICHRA plans in 2019, spurring commercial traction in recent years. Notably, an ICHRA platforms market has since emerged, with 5 startups raising $234M in equity funding across 5 deals in Q2’25:

• Gravie ($144M, with participation from Atlantic Vantage Point)
• Thatch ($40M, with participation from ADP Ventures and SemperVirens Venture Capital)
• Venteur ($20M, led by American Family Ventures)
• Zorro ($20M)
• zizzl health ($10M)

An ICHRA is an alternative to traditional employer-selected health plans in the US, where employers instead allocate money for their employees to select their preferred qualified plan individually. ICHRA startups facilitate these payments, providing a central platform for benefits managers to administer their company’s ICHRA program.

The ICHRA platforms market is seeing favorable traction, evidenced by widespread increases in Mosaic score — measuring the overall health and growth potential of private companies — among companies assessed.

Most of these companies — Thatch, Gravie, Venteur, Remodel Health, Take Command Health, Zorro, StretchDollar, and BenefitBay — have Mosaic scores in the top 5% of all private companies tracked by CB Insights.

CBI Customers: Check out leaders in our ICHRA platforms market

Future implication: Health insurers have the potential to increase enrollment by enhancing distribution channels to engage individuals employed by SMBs using ICHRAs.

US-based startups raise 3 in 5 global insurtech deals

60% of Q2’25 insurtech deals went to US-based startups — an 8-year high. Q3’17 was the last quarter to see a larger deal share among US-based startups (61%).

The increase was attributable to slight deal share increases across both L&H and P&C insurtech (from 68% to 69% and from 53% to 56%, respectively).

Within the US, Silicon Valley and the New York City metro areas led in Q2’25 insurtech deals — 11 and 9, respectively.

Europe-based startups raised 21% of Q2’25 insurtech deals: 6 of those deals went to France-based startups, and 5 went to UK-based startups.

Check out the top 50 venture investors in France

Future implication: US insurtech deal share has increased each quarter since Q3’24, so companies should evaluate growth opportunities in global markets with less insurtech presence (i.e., less competition).

MORE INSURTECH RESEARCH FROM CB INSIGHTS

• 100 real-world applications of genAI across financial services and insurance
• Insurance’s new frontier: 3 innovation imperatives for 2025 and beyond
• Our 6 predictions for the insurance space in 2025

The post State of Insurtech Q2’25 Report appeared first on CB Insights Research.

Many of the world’s most influential financial services firms — like Allianz, J.P. Morgan, and Mastercard — have taken concrete action to adopt genAI technology.

The genAI adoption efforts have shaped 2 years’ worth of corporate strategy, unveiling key priorities — from the rise of agentic commerce to customer service copilots — across the competitive landscape.

Using CB Insights data, we identified and analyzed 100 real-world applications of genAI from 69 companies across banking, insurance, and payments.

Download the book to explore all 100 applications, and read on for 5 key takeaways and a breakdown of our methodology.

Key takeaways

1. Cross-functional platforms are now table stakes.

24% of applications center on deploying general-use genAI platforms to employees.

Prominent firms like BBVA have established enterprise-wide genAI capabilities across their organizations (typically via enterprise-wide deployments of platforms like Microsoft Copilot or ChatGPT). Early adopters — like Klarna, which shared in May 2024 that 87% of its employees are using OpenAI technology — now have over a year of genAI operational experience at scale, which can guide the development of more complex applications in the future.

Looking forward, financial services firms without a plan to provide genAI access to employees risk competitive disadvantage. Over the past 2 years, simply providing genAI capabilities to employees has shifted from cutting-edge innovation to standard operations.

2. Microsoft and OpenAI permeate the adoption landscape.

33% of applications analyzed disclose involvement from either Microsoft or OpenAI.

Microsoft and OpenAI (in which Microsoft has significantly invested) overwhelmingly permeate the landscape of genAI applications analyzed. Many of these applications anchor on foundational capabilities, from which organizations can build more complex applications and agents. Anthropic, Amazon Web Services, and Google Cloud follow a similar deployment pattern across multiple companies in the sector.

Looking forward, financial services firms should prepare for increasingly blurred “build, buy, or partner” decisions. The prevalence of genAI model developers (like OpenAI and Anthropic) and big tech partners (like Microsoft and Google) provide financial services executives with more flexibility to customize their tech solutions than what has traditionally been the case with many point-solution providers.

3. Emerging genAI vendors face a fierce competitive landscape.

Median Mosaic Scores among genAI startups analyzed are in the top 3% globally.

The 100 analyzed genAI applications include engagement from 25 startups as tech vendors, ranging from pre-seed companies like Twin — which offers an agent for invoice collection — to late-stage giants like Anthropic. These startups have a median CB Insights Mosaic Score — which measures the overall health and growth potential of private companies — of 732 out of 1,000, as of July 30, 2025.

Looking forward, financial services firms should prepare for increasingly capable tech vendors seeking to sell their genAI products. These vendors must exhibit a clear advantage over the alternative of building in-house solutions.

4. Customer-facing genAI will become increasingly prevalent.

16% of applications center on customer engagement & self-service capabilities.

Firms like ING, Wells Fargo, and Truist show that customer-facing genAI assistants are capable of powering millions of customer interactions. Customer-facing genAI deployment will accelerate as companies like Mastercard, Visa, and PayPal deploy applications centered on “agentic commerce,” where customers can autonomously shop and complete transactions with AI payments agents.

Looking forward, financial services firms need to develop a gameplan for how they will engage customers with agentic AI. The market opportunities for enterprise agents and copilots are growing, so customer-facing applications will quickly emerge.

5. Impact is now tangible, but success definitions remain elusive.

Only 30% of applications disclose quantitative tangible impact from deployment.

Most of the application sources analyzed lack disclosure of tangible impact (i.e., numbers, percentages, or figures to quantify effectiveness). Among the impact metrics that are available, the top-cited focus on operational considerations like call-handle times.

Looking forward, any financial services firm has the opportunity to define “what good genAI adoption looks like” across the sector. The lack of clear success definitions creates an opportunity for financial services firms to stand out among peers.

Methodology

We used CB Insights’ Business Graph — including data points like Dealmaking, Business Relationships, Earnings Transcripts, and Media Mentions — and third-party company releases to identify 100 real-world genAI applications across banking, insurance, and payments. These applications were disclosed between July 2023 and April 2025.

Then, using CB Insights’ Team of Agents, we analyzed these applications across 10 categories. Applications are detailed based on disclosure date, and are not exhaustive of a given company’s genAI initiatives. Applications and categorizations are not mutually exclusive or exhaustive of activity within their respective industries.

For information on reprint rights or other inquiries, please contact reprints@cbinsights.com.

The post 100 real-world applications of genAI across financial services and insurance appeared first on CB Insights Research.

Insurtech does not exist in a vacuum, and the broader venture environment is centered on AI funding. In Q1’25, OpenAI raised nearly 31 times the total funding of all insurtechs combined, underscoring where capital is flowing.

AI capabilities are poised to reshape the future of insurance — whether through 100-day-old startups or 100-year-old incumbents adapting to a new competitive reality.

Download the full report to access comprehensive data and charts on the evolving state of insurtech.

Key takeaways from the report include:

• Insurtech dealmaking increases for the first time in a year. Global insurtech deal count increased 17% quarter-over-quarter (QoQ), from 83 in Q4’24 to 97 in Q1’25. Property & casualty insurtech drove the increase, from just 51 deals — a near 8-year low — in Q4’24 to 70 in Q1’25.
• Median insurtech deal size tumbles 35% in 2025 YTD (year to date) to $4.0M. The median insurtech deal size has not been lower since 2019 ($3.4M). The decline stands out because median deal sizes across the broader venture environment rose 17% YTD to $3.5M, while insurtech’s fell.
• Early-stage insurtech funding reaches a nearly 8-year low — $179M. Early-stage insurtech funding fell 35% year-over-year (YoY) from $277M in Q1’24.
• Late-stage insurtech dealmaking paints a cautious growth picture. The 7 insurtechs that raised Series D+ deals in Q1’25 saw median headcount growth of just 3% over the past 12 months — far lower than insurtechs raising at earlier stages.
• Silicon Valley sees 1 in 5 global insurtech deals. Silicon Valley’s share of global insurtech equity deals has nearly doubled YoY, from 10.9% in Q1’24 to 21.9% in Q1’25. Funding to Silicon Valley-based insurtech increased to $0.3B — the highest level since Q4’23 ($0.4B).

Insurtech dealmaking increases for the first time in a year

Insurtech deal count increased 17% QoQ, from 83 deals in Q4’24 to 97 in Q1’25 — a reversal of the broader venture trend, where deal count declined 7% over the same period.

The rebound was driven by property & casualty insurtech, which jumped from just 51 deals — a near 8-year low — in Q4’24 to 70 in Q1’25. Meanwhile, life & health insurtech saw deal count dip to 27 in Q1’25.

This increase in activity followed an abnormally weak Q4, when funding had fallen to $0.8B. In Q1’25, insurtech funding surged 63% to $1.3B — slightly above the 10-quarter average of $1.2B. Notably, insurtech was the only fintech vertical to post a funding gain this quarter.

Nearly $400M toward three $100M+ mega-round deals contributed to the broader funding rebound:

• Quantexa, a data management and financial crime prevention platform, raised a $175M Series F deal.
• Openly, a homeowners-focused general agency and program administrator, raised a $123M Series E deal.
• Instabase, an AI platform for unstructured data, raised a $100M Series D deal.

Explore Quantexa’s $2.6B AI-driven rise with the full scouting report

Future implication: These mega-rounds signal investors’ readiness to write large checks for select insurtechs — even in a cautious funding environment. For incumbents, this underscores the importance of tracking well-capitalized startups that could pose competitive threats through 2025.

Median insurtech deal size tumbles in Q1’25

Half of the quarter’s top 10 insurtech deals went to AI-centered startups: Quantexa, Instabase, Nirvana, Taktile, and Naked. But unlike the broader venture market, insurtech lacked the depth of large-dollar AI deals needed to lift the median.

While the average insurtech deal size ticked up 6% to $15.8M in 2025 YTD, the median insurtech deal size tumbled from $5.4M in 2024 to $4.0M — its lowest point since 2019 ($3.4M). This trend diverged from the broader venture environment, where a spike in $100M+ mega-rounds pushed medians higher.

Early-stage insurtech saw a similar dynamic, with median deal sizes declining to $3.0M in 2025 YTD — even as the broader venture landscape saw an increase, from $2.0M in 2024 to $2.8M. Fertility-focused platform Gaia raised the largest early-stage insurtech deal in Q1’25 ($15M Series A).

Track 2.5K+ insurtech companies

Future implication: Smaller check sizes could give incumbent insurers an opening to partner with capital-constrained insurtechs — potentially securing more favorable terms and early access to emerging tech that would be harder to land in a hotter market.

Early-stage insurtech funding reaches a nearly 8-year low

Early-stage insurtech startups raised just $178.5M across 56 deals in Q1’25 — the lowest total since Q4’16 ($162.8M). Funding has dropped sharply over the past year, falling 35% from Q1’24.

Early-stage insurtech deal share has also tumbled over the past few years. In 2022, 71% of deals went to early-stage insurtechs, while in 2025 YTD, it was just 58%.

Still, the quarter delivered one notable early-stage highlight: AI claims platform Assured became just the second new insurtech unicorn since Q4’23. The startup raised an undisclosed Series A round at a $1B valuation, backed by ICONIQ Capital and Kleiner Perkins. 

Assured also ranks in the global top 4% of companies for hiring momentum and is actively prioritizing genAI-focused hires:

CBI customers: Explore all of Assured’s Hiring Insights

Future implication: The sustained drop in early-stage insurtech funding risks shrinking the industry’s future innovation pipeline. To stay ahead, insurance execs should prioritize identifying and building relationships with promising startups now — before competition for a smaller pool of standouts intensifies.

Late-stage insurtech dealmaking paints a cautious growth picture

The 7 insurtechs that raised Series D+ rounds in Q1’25 posted median 12-month headcount growth of just 3% — significantly lower than their earlier-stage peers. Only one of them — insurance customer communication platform Ushur — saw double-digit growth over the same period.

Ushur is also the only insurtech among the 7 with an above-average M&A probability within the next 2 years. This signals a potential standstill in the late-stage insurtech market, especially as the IPO pipeline remains frozen — just 2 insurtechs have gone public since 2023.

CBI customers: Ask ChatCBI a question about Ushur’s Scouting Report

Future implication: With just 3% median headcount growth, late-stage insurtechs are showing signs of stagnation. In a market where public investors expect clear growth momentum, more of these companies may be pushed toward M&A exits — often at compressed valuations.

Silicon Valley sees 1 in 5 global insurtech deals

Silicon Valley has now seen 2 consecutive quarters of elevated insurtech dealmaking. The share of global insurtech deals to Silicon Valley-based startups nearly doubled YoY, rising from 10.9% in Q1’24 to 21.9% in Q1’25. Comparatively, 9% of deals across the broader venture environment went to Silicon Valley-based companies in Q1’25.

2 of the quarter’s top 5 insurtech deals went to Silicon Valley-based insurtechs: Instabase and Nirvana ($80M Series C). As a result, Silicon Valley’s insurtech funding in Q1’25 increased to $0.3B — the highest level since Q4’22 ($0.4B). By comparison, Europe’s insurtech market saw $0.4B in funding across 26 deals in Q1’25, slightly edging out Silicon Valley’s total.

Silicon Valley also saw a major insurtech exit in Q1’25: Munich Re announced its acquisition of Palo Alto-based Next Insurance — one of insurtech’s most-promising startups — at a $2.6B valuation.

Future implication: As the world’s premier tech ecosystem, Silicon Valley remains a leading indicator for insurtech innovation. Insurance executives should track tech talent migration into insurtech as a signal of where future competitive threats may emerge.

MORE INSURTECH RESEARCH FROM CB INSIGHTS

• Our 6 predictions for the insurance space in 2025
• How genAI is reshaping the insurance value chain
• Insurtech 50: The most promising insurtech startups of 2024

The post State of Insurtech Q1’25 Report appeared first on CB Insights Research.

Just 113 investors made at least 2 equity insurtech investments during the year — a 72% drop from the high of 406 investors in 2021. As a result, insurtech dealmaking dropped to 362 deals, the lowest annual total since 2016.

Download the full report to access comprehensive data and charts on the evolving state of insurtech.

Key takeaways from the report include:

• Insurtech dealmaking and funding continue to decline. Deal count fell 28% year-over-year (YoY) to 362 deals in 2024, while funding dropped 4% to $4.5B. Insurtech deals and funding are both at recent lows.
• Quarterly funding to P&C insurtechs is in the gutter. P&C funding dropped 43% quarter-over-quarter (QoQ) to $0.4B in Q4’24 — a 7-year low — with annual funding also declining to $2.6B. The year’s 2 largest deals in P&C went to AI-focused startups Altana AI and Akur8, highlighting investors’ appetite for specialized AI opportunities.
• Silicon Valley is dethroned as insurtech’s funding capital. Silicon Valley’s share of global insurtech funding dropped dramatically from 20% in 2023 to 10% in 2024, surpassed by New York at 15%. This was the first time since 2018 that Silicon Valley wasn’t No. 1.
• Early-stage insurtechs raise record-high deal sizes. The median early-stage insurtech deal size surged 52% YoY to $3.8M in 2024 — outpacing the broader venture landscape — as investors concentrate on a more selective group of innovators.
• Recently funded insurtechs show stronger business fundamentals and more efficient growth trajectories. Insurtechs that raised funding in 2024 have grown employee headcounts by a median of 20% over the last 12 months, far surpassing the 3% growth among those that raised during the funding boom of 2021.

Insurtech dealmaking and funding continue to decline

Insurtech deal count fell 28% YoY, from 500 deals in 2023 to 362 in 2024. The decline outpaced the broader venture environment, which saw deal count fall 19% YoY. 2024 was the worst year for insurtech dealmaking since 2016 (328 deals).

Deal volume among leading investors has also decreased. The number of investors that made 5 or more equity insurtech investments has fallen from 57 in 2021 to just 7 in 2024. Those that remain active now operate in a more favorable environment due to reduced competition across the marketplace.

Insurtech funding declined in 2024 as well, though by only 4% YoY. 

CBI customers: Track 2.5K+ insurtech companies

Quarterly funding to P&C insurtechs is in the gutter

Q4’24 marked a 7-year low for P&C insurtech funding, which fell 43% QoQ to $0.4B. The decline caused broader insurtech funding to halve QoQ, from $1.4B in Q3’24 to $0.7B in Q4’24.

P&C deal count also fell 10% QoQ to 45 in Q4’24, the lowest level since Q2’16.

Annual P&C insurtech funding declined to $2.6B in 2024, a 7-year low, underscored by just 2 P&C insurtech startups raising $100M+ mega-round deals: Altana AI, which offers an AI-powered supply chain risk platform, and Akur8, an AI-powered pricing platform. Those deals signal appetite for specialized AI products for the insurance industry, coinciding with a global surge in AI funding to over $100B last year.

Comparatively, life & health insurtech saw an increase in annual funding and dealmaking. Funding increased 64% YoY to $1.8B in 2024, while deals ticked up from 126 in 2023 to 128 in 2024.

Silicon Valley is dethroned as insurtech’s funding capital

The share of global insurtech funding to Silicon Valley-based startups halved YoY, falling from 20% in 2023 to 10% in 2024. Comparatively, New York led the way with 15% of global insurtech funding share in 2024, more than doubling from 7% the year prior.

Silicon Valley is the world’s leading tech ecosystem, and venture-wide funding to the region’s startups soared last year amid a boom in AI investment. Given the ecosystem’s prominence, diminished insurtech activity in Silicon Valley could lead to missed opportunities for insurance-focused AI advancements.

See how Silicon Valley fared in the broader venture market

Early-stage insurtechs raise record-high deal sizes

The median insurtech deal size increased from $4.1M in 2023 to $5.2M in 2024.

The increase was fueled by early-stage insurtechs, which saw median deal size surge 52% YoY, from $2.5M in 2023 to $3.8M in 2024. The size and growth rate both beat out the broader venture environment, where early-stage deal size increased 17% YoY to $2.1M.

Combined with the broader decline in dealmaking, larger check sizes indicate that investors are concentrating their investments on fewer bets. For the insurance industry, this dynamic points to a slimmer insurtech landscape with fewer high-growth participants moving forward.

On the other hand, late-stage insurtech deal sizes declined 19% YoY from $40M in 2023 to $32.5M in 2024.

The decline coincides with a restricted exit environment: Insurtech M&A exits fell from 57 in 2023 to 35 in 2024. 

Nevertheless, notable exits include CCC Intelligent Solutions’s acquisition of EvolutionIQ in December at a valuation of $730M, as well as Applied’s purchase of Planck in July. Both acquisitions targeted genAI-enabled startups, signaling a broader appetite for genAI insurance offerings.

Recently funded insurtechs show stronger business fundamentals

Insurtechs that raised funding in 2024 are growing headcounts faster than other insurtechs, by a median of 20% over the last 12 months and 40% over the last 24 months.

Comparatively, median headcount growth among insurtechs that raised a funding round at the height of the funding boom in 2021 is marginal — just 3% over the last 12 months.

The higher growth rates of recently funded insurtechs suggest a new breed of companies with stronger fundamentals — they’re not only able to raise capital in a selective market but are also demonstrating more efficient growth than their 2021-funded counterparts.

By the same logic, investors and partners (like established brokers and carriers) should monitor the landscape for outliers that represent organic growth opportunities — such as insurtechs that haven’t raised funding in several years but continue to grow headcount at a steady clip.

See the fastest-growing insurtechs by headcount growth

MORE INSURTECH RESEARCH FROM CB INSIGHTS

• How genAI is reshaping the insurance value chain
• Insurtech 50: The most promising insurtech startups of 2024
• ITC Vegas 2024: Insurance is facing an AI inflection point
• Tech Transforming the World: The Game Changers Roundtable

For information on reprint rights or other inquiries, please contact reprints@cbinsights.com.

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