Insurtech Exits and On-Ramps
Though overall insurtech funding was down in the second quarter of 2025, venture capital’s interest in insurtech remains strong.
As money continues to flow into the insurtech sector, a couple of big initial public offerings have valued companies in the billions of dollars.
Specialty insurance marketplace Accelerant was valued at $6.4 billion in its July trading debut as its stock rose 36% from a $21 offer price. The data-driven Accelerant Risk Exchange platform connects specialty underwriters with capacity providers from institutional investors to insurance companies. Its stock remained around $30 in late August for a market capitalization of about $6.5 billion.
That marked the second big insurtech IPO in as many months. Slide’s IPO in June valued the Florida homeowners insurer at $2.6 billion on its opening day, though that had declined to $1.7 billion in late August.
While those represent successful exits, investors are putting money into earlier-stage startups as well. Funding for insurtech startups had exceeded $60 billion since 2012, according to the Gallagher Re Global InsurTech Report released in August. About $15 billion of that has gone to AI-related technologies for insurance.
As insurtechs have focused more on creating sustainable and profitable businesses in recent years, venture capital and private equity firms have increased their investments in the sector, Gallagher Re reports.
However, insurtech funding in second-quarter 2025 dropped by nearly 17% from the first quarter, to $1.09 billion from $1.3 billion (and was off 14% from $1.27 billion in the year-ago second quarter). This year’s decline followed a banner first quarter with a 90% jump in funding from the fourth quarter of 2024. In a reversal from the first quarter of 2025, however, life and health accounted for the lion’s share of second-quarter funding at $728 million, with property and casualty at $362 million. That was due to big life and health funding rounds including $144 million for health plan provider Gravie and $120 million for life insurance technology firm Bestow.
In Latin America, insurtech funding soared to $121 million in the first six months of 2025, some 370% higher than the first six months of 2024 and 32% more than full-year 2024, according to a report from Spain-based insurer MAPFRE. Brazil accounted for 74% of that funding, or $89 million. Of the 507 Latin American insurtechs, Brazil, the largest and most populous country in the region, hosts 203, with Mexico at 129 and Argentina at 95.
The portion of Latin American startups operating in more than one country continues to grow, reaching about 18% in the first half of 2025. The trend toward internationalization indicates good health for the regional ecosystem.
