The CB Insights State of Insurtech report indicated that the sector staged a clear rebound last year — not through a flood of speculative early bets, but through a decisive shift toward companies that have proved they can deliver scale, traction, and durable business models.
After years of subdued activity, insurtech IPOs and M&A exits jumped a combined 67% year-over-year, outpacing the broader venture ecosystem by a striking 60 percentage points.
Investors in the space have become markedly more cautious than their counterparts elsewhere in venture capital.
Just 24% of 2025 insurtech deals involving companies with a CB Insights Commercial Maturity score targeted “Emerging” or “Validating” startups — compared with 46% across all venture deals.
At the top end, every one of the 11 mega-rounds ($100M+) went exclusively to companies that had already reached at least the “Scaling” stage.
By contrast, the wider market poured $13.7 billion into 40 nascent companies, including a single $2 billion Seed round for AI startup Thinking Machines Lab that alone equaled 38% of total insurtech funding for the year.
This selectivity reflects a broader maturation.
Insurers and MGAs are no longer chasing pilots; they are forming revenue-generating partnerships with the most proven players.
In 2025, eight large carriers and MGAs (each with at least $1 billion in revenue) each struck three or more disclosed deals with insurtechs.
These partners boasted an average Mosaic Score of 662/1000 — placing them in roughly the top 7% of private companies by momentum.
Cyber risk analytics firm CyberCube stood out as the most frequent collaborator, teaming up with Aviva, DUAL, and Mapfre Re, while high hiring momentum at firms like ICEYE (97th percentile) and Hyperexponential (89th percentile) further signaled strength.
Real-world examples illustrate the trend.
QBE partnered with Assureful to deliver general liability cover to e-commerce merchants and with bolttech to embed health insurance in Singapore.
These collaborations focus squarely on distribution and underwriting wins rather than experimental proofs of concept.
Liquidity also improved markedly.
Insurtech IPOs rose from zero in 2023 to six in 2025, while M&A exits hit a three-year high of 74.
Health insurer Alan and cyber specialist Coalition now post the highest two-year IPO probabilities in the sector at 58.3% each — well above the industry norm.
Another seven high-momentum insurtechs (Mosaic 800+, Scaling maturity) carry double-digit IPO odds for the near term, mostly insurers or intermediaries.
Looking ahead to 2026, the report forecasts continued emphasis on operating durability. With fewer active investors (only 15 made four or more bets in 2025, the lowest since 2016), late-stage companies will lean harder on public markets or strategic acquirers.
Incumbents, meanwhile, will rely on proprietary momentum signals — Mosaic scores, hiring trends, and Commercial Maturity ratings — to identify the partners best positioned to move the needle on growth and profitability.
In summary, 2025 marked insurtech’s transition from experimentation to execution. The winners are those that have moved beyond hype to demonstrate measurable commercial results — and the data shows the market is rewarding them.
