CB Insights is out with its State of Insurtech Q3’25 report. The highest takeaway? With the whole variety of offers down and merger and acquisition exercise at document highs, the insurtech business seems to be reorganizing to maximise the alternatives of scale, digital modernization, and market attain.
Offers Down
In line with CB Insights’ analysis, the variety of insurtech offers dropped to its lowest stage for the reason that second quarter of 2016. Q3’25 featured 76 insurtech offers, 65% lower than the business’s peak of 219 offers within the first quarter of 2021.
Along with the variety of offers being down, the median insurtech deal dimension has additionally decreased on a year-to-date foundation from $3.8 million in 2024 to $2.9 million in 2025. The report signifies {that a} diminished early-stage pipeline is guilty. Yr-to-date, 60% of all offers have gone to early-stage startups, the bottom deal-share share since 2011.
Lastly, the variety of energetic traders in insurtech in Q3’25 shrank to the fewest for the reason that first quarter of 2017. Particularly notable was the quarter-over-quarter decline in traders making a number of investments, from 13 in Q2’25 to 4 in Q3’25.
Mergers and Acquisitions Up
On the similar time, M&A exercise in insurtech was on a tear, reaching its highest ranges in three years. There have been 21 insurtech M&A offers in Q3’25—probably the most since Q3’22 when there have been 23 offers. This compares favorably to 16 offers in Q2’25. The report notes that the features within the third quarter of this yr helped reverse a pattern of reducing M&A exercise between 2022 and 2024.
Among the many largest offers of the quarter have been Arthur J. Gallagher’s $2.9 billion acquisition of AssuredPartners and Introduction Worldwide’s $2.5 billion acquisition of Sapiens. Different main offers of the quarter embody Hong Kong-based Solar Life’s further funding in Bowtie and Zurich Insurance coverage Group’s acquisition of cyber insurance coverage and threat administration insurtech BOXX.
The explanations for the uptick in M&A exercise are different and attention-grabbing. Some analysts have instructed that enterprise leaders have gotten more and more assured in coping with uncertainty and have embraced a “transfer by uncertainty” mentality, within the phrases of WTW analyst Jana Mercereau. Different components embody excessive inventory market valuations, which may facilitate acquisitions; comparatively secure rates of interest; and the comparatively weak M&A interval from 2022 to 2024. The drive for digital modernization additionally performs a task. For its half, CB Insights provides an intriguing concept that the relative lack of consideration from traders gave established insurance coverage firms the chance to “interact extra intently with rising insurtechs.”
Insurtech in This autumn and Past
Heading into the ultimate quarter of the yr, there are a variety of questions for insurtechs and lots of of them mirror considerations and points in fintech extra broadly. Which firms are literally placing AI to work in attention-grabbing use circumstances, and that are nonetheless in a pilot section purgatory? How nicely are traders and institution insurance coverage firms recognizing the place the worth lies? How will evolving regulatory necessities incentivize regtechs to develop revolutionary compliance options for insurers? These are a few of the questions that come to thoughts when studying CB Insights newest insurtech report. It is going to be attention-grabbing to see how the occasions of the fourth quarter and past assist us reply them.
Learn the total report—CB Insights: State of Insurtech Q3’25
Photograph by Scott Webb
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