Insurtech funding rebounds, driven by re/insurance

Re/insurers led the charge, deploying $2.7 billion across 71 deals, marking a substantial increase from $770 million over 55 deals in 2024. This surge indicates a strategic pivot by established re/insurance entities towards insurtech investments, potentially to modernize operations or expand into new markets. Deals involving property & casualty (P&C) focused insurtechs saw the most activity, accounting for 48% of all deals. This focus suggests that investors are keen on applying technology to address inefficiencies and risks within the P&C sector. The median deal size for re/insurers investing in insurtech was $24.4 million, compared to the overall insurtech median of $6 million. Larger investments from re/insurers could mean they're targeting more mature insurtechs with proven business models.