CB Insights is out with its State of Insurtech Q3’25 report. The highest takeaway? With the full variety of offers down and merger and acquisition exercise at report highs, the insurtech trade seems to be reorganizing to maximise the alternatives of scale, digital modernization, and market attain.
Offers Down
Based on 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 trade’s peak of 219 offers within the first quarter of 2021.
Along with the variety of offers being down, the median insurtech deal measurement 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 responsible. 12 months-to-date, 60% of all offers have gone to early-stage startups, the bottom deal-share proportion since 2011.
Lastly, the variety of lively 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—essentially 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 12 months helped reverse a pattern of lowering M&A exercise between 2022 and 2024.
Among the many greatest offers of the quarter had been Arthur J. Gallagher’s $2.9 billion acquisition of AssuredPartners and Creation Worldwide’s $2.5 billion acquisition of Sapiens. Different main offers of the quarter embrace Hong Kong-based Solar Life’s extra funding in Bowtie and Zurich Insurance coverage Group’s acquisition of cyber insurance coverage and danger administration insurtech BOXX.
The explanations for the uptick in M&A exercise are different and attention-grabbing. Some analysts have prompt that enterprise leaders have gotten more and more assured in coping with uncertainty and have embraced a “transfer by way of uncertainty” mentality, within the phrases of WTW analyst Jana Mercereau. Different elements embrace excessive inventory market valuations, which may facilitate acquisitions; comparatively steady 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 gives 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 12 months, there are a selection of questions for insurtechs and plenty of of them mirror considerations and points in fintech extra broadly. Which firms are literally placing AI to work in attention-grabbing use instances, and that are nonetheless in a pilot part purgatory? How properly are traders and institution insurance coverage firms recognizing the place the worth lies? How will evolving regulatory necessities incentivize regtechs to develop progressive compliance options for insurers? These are a few of the questions that come to thoughts when studying CB Insights newest insurtech report. Will probably be attention-grabbing to see how the occasions of the fourth quarter and past assist us reply them.
Learn the complete report—CB Insights: State of Insurtech Q3’25
Photograph by Scott Webb
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