--- title: "Sector Snapshot: Insurtech Funding Is Way Down, But AI Is Still Driving Some Big Deals" description: "\"Discover the latest trend in the insurtech industry as funding declines in 2025. Find out how AI remains a bright spot and who is affected by this change. Read more here.\"" image: https://insnerds.com/hubfs/News%20Feed%20Featured%20Image.jpg --- 1 min read # Sector Snapshot: Insurtech Funding Is Way Down, But AI Is Still Driving Some Big Deals [![Picture of Insurance Nerds Editorial Team](https://insnerds.com/hubfs/insurance_nerds_logo.png) Insurance Nerds Editorial Team ](https://insnerds.com/news/author/insurance-nerds-editorial-team) : Dec 11, 2025 7:25:48 AM ![Sector Snapshot: Insurtech Funding Is Way Down, But AI Is Still Driving Some Big Deals](https://insnerds.com/hubfs/News%20Feed%20Featured%20Image.jpg) ### Insurtech Funding Declines in 2025 As of 2025, funding for insurtech startups has seen a significant drop, amounting to approximately $3.9 billion in financing from seed to growth stages. This figure represents nearly one-fourth of the peak funding levels reached in 2021, according to Crunchbase data. ### Fewer Deals at Bigger Sizes Alongside the decreased funding volume, the number of deals has also declined. This trend suggests a possible reduction in investor interest in the insurtech sector. Interestingly, while fewer deals are being made, the average size of these rounds appears to be increasing. This juxtaposition could indicate that investors are opting to place larger bets on fewer startups in a tightening market. ### The Role of AI Despite the overall downturn in funding, artificial intelligence remains a bright spot within the insurtech landscape. Companies leveraging AI technology are still managing to secure notable investments, underscoring a persistent interest in innovative solutions that enhance operational efficiency or improve customer experiences. ### Who Is Affected? This funding decline impacts a variety of stakeholders, including insurtech startups, investors, and the broader insurance industry. Startups may face challenges in scaling their operations or bringing new products to market without the robust funding they enjoyed in prior years. Investors might be reassessing their strategies in light of current market conditions, while traditional insurers could find themselves competing with a more selective and potentially more powerful wave of tech-driven startups. Overall, while the current state of insurtech funding is less vibrant than in previous years, the continued emphasis on AI solutions suggests that there are still opportunities for innovation and growth within the industry. **Original Source:** [https://news.crunchbase.com/venture/sector-snapshot-insurtech-funding-down-ai-deals/](https://news.crunchbase.com/venture/sector-snapshot-insurtech-funding-down-ai-deals/) - [Tweet](https://twitter.com/share) [![Oscar Health Tumbles: Can This Insurtech Disruptor Bounce Back?](https://insnerds.com/hubfs/News%20Feed%20Featured%20Image.jpg) ](https://insnerds.com/news/oscar-health-tumbles-can-this-insurtech-disruptor-bounce-back) #### [Oscar Health Tumbles: Can This Insurtech Disruptor Bounce Back?](https://insnerds.com/news/oscar-health-tumbles-can-this-insurtech-disruptor-bounce-back) ![Picture of Insurance Nerds Editorial Team](https://insnerds.com/hs-fs/hubfs/insurance_nerds_logo.png?width=30&name=insurance_nerds_logo.png) [Insurance Nerds Editorial Team](https://insnerds.com/news/author/insurance-nerds-editorial-team) : Feb 25, 2026 12:31:42 PM Understanding the Recent Decline in Oscar Health's Stock Oscar Health, a notable player in the insurtech space, has seen a significant drop in its... [Read More](https://insnerds.com/news/oscar-health-tumbles-can-this-insurtech-disruptor-bounce-back) [![Brokerslink uploads Swedish insurtech to network, drives tech focus](https://insnerds.com/hubfs/News%20Feed%20Featured%20Image.jpg) ](https://insnerds.com/news/brokerslink-uploads-swedish-insurtech-to-network-drives-tech-focus) #### [Brokerslink uploads Swedish insurtech to network, drives tech focus](https://insnerds.com/news/brokerslink-uploads-swedish-insurtech-to-network-drives-tech-focus) ![Picture of Insurance Nerds Editorial Team](https://insnerds.com/hs-fs/hubfs/insurance_nerds_logo.png?width=30&name=insurance_nerds_logo.png) [Insurance Nerds Editorial Team](https://insnerds.com/news/author/insurance-nerds-editorial-team) : Jan 21, 2026 11:03:45 AM Brokerslink Expands Its Network with New Swedish Insurtech Brokerslink, a global network of insurance brokers, has recently added a new member from... [Read More](https://insnerds.com/news/brokerslink-uploads-swedish-insurtech-to-network-drives-tech-focus) [![Zurich Insurance Acquires Canadian Cyber Insurtech BOXX - Fintech Schweiz Digital Finance News](https://insnerds.com/hubfs/News%20Feed%20Featured%20Image.jpg) ](https://insnerds.com/news/-zurich-insurance-acquires-canadian-cyber-insurtech-boxx-fintech-schweiz-digital-finance-news) #### [Zurich Insurance Acquires Canadian Cyber Insurtech BOXX - Fintech Schweiz Digital Finance News](https://insnerds.com/news/-zurich-insurance-acquires-canadian-cyber-insurtech-boxx-fintech-schweiz-digital-finance-news) ![Picture of Insurance Nerds Editorial Team](https://insnerds.com/hs-fs/hubfs/insurance_nerds_logo.png?width=30&name=insurance_nerds_logo.png) [Insurance Nerds Editorial Team](https://insnerds.com/news/author/insurance-nerds-editorial-team) : Jul 4, 2025 7:29:01 AM Zurich Insurance Expands Cyber Offerings with BOXX Acquisition Zurich Insurance has made a strategic move by acquiring BOXX Insurance, a Canadian... [Read More](https://insnerds.com/news/-zurich-insurance-acquires-canadian-cyber-insurtech-boxx-fintech-schweiz-digital-finance-news) ![](https://px.ads.linkedin.com/collect/?pid=7110236&fmt=gif) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Insurance Nerds Editorial Team", "url" : "https://insnerds.com/news/author/insurance-nerds-editorial-team" }, "datePublished" : "2025-12-11T12:25:48.000Z", "headline" : "Sector Snapshot: Insurtech Funding Is Way Down, But AI Is Still Driving Some Big Deals", "image" : [ "https://insnerds.com/hubfs/News%20Feed%20Featured%20Image.jpg" ], "mainEntityOfPage" : { "@id" : "https://insnerds.com/news/sector-snapshot-insurtech-funding-is-way-down-but-ai-is-still-driving-some-big-deals", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://insnerds.com/hubfs/InsNerds%20Large%20print%20quality.png" }, "name" : "Insurance Nerds" } } ```