Insurtech funding rebounds with M&A surge
Global insurtech investment is up 19.5% to $5.08B in 2025, the first annual gain since 2021 reported. Private equity activity is at a six-year high with a resurgence of megadeals.
AI is dominating the insurtech conversation, with two-thirds of 2025's funding going to AI-centered firms. These companies raked in $3.35 billion across 227 deals, signaling the industry's heavy investment in the technology. Reinsurers are increasingly comfortable investing in insurtech, viewing them as a strategic path forward. Property and casualty insurtech saw the most pronounced rebound, with funding climbing 34.9% to $3.49 billion. Investors are favoring operationally scalable tech providers over tech-enabled brokers, shifting the focus from disruption to infrastructure and analytics. Nearly 60% of P&C deals went to business-to-business insurtechs, a 12% increase from 2021. Vertafore is integrating AI to automate tasks, enhance document intelligence, and improve data quality. Their Surefyre platform uses AI to convert PDF submission forms into web applications, saving MGAs hours. Vertafore is also planning to introduce AI-powered ingestion of unstructured submission data. Competitors to Vertafore include Applied Systems, Ebix, and Zywave. Applied Systems ranks higher in product quality, customer service, and pricing scores. Alternatives to Vertafore's agency platform include Applied Epic and EZLynx Agency Management.
