Why insurers must act now on digital transformation & UK dominated the European InsurTech market with a third of all deals in the region in H1

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Why insurers must act now on digital transformation - The insurance industry’s digital transformation is now a necessity. According to insights from Comarch, a leading digital transformation specialist, the decision to embrace change has effectively already been made by insurers, whether they participate or not. The COVID-19 pandemic accelerated the shift to digitised sales and after-sales services, pushing companies to adopt remote and self-service options rapidly. Coupled with the economic recession squeezing profits, insurance firms must urgently seek optimisation and efficiency across all operations. Read the full story here.

Research Highlight

UK dominated the European InsurTech market with a third of all deals in the region in H1

Key European InsurTech investment stats in H1 2025: 

• European InsurTech deal activity dropped by 16% YoY 

• UK secured a third of all European InsurTech deals as they dominated the region in H1  

• Weecover, Spain’s leading InsurTech in embedded insurance, secured $4.4m in a funding round to fuel its growth and international expansion, positioning it among the top European InsurTech deals in the first half of the year 

European InsurTech deal activity dropped by 16% YoY 

In H1 2025, the European InsurTech sector saw a continued decline in both funding and deal activity.  

The region recorded 31 funding rounds, representing a 16% decrease from the 37 deals completed in H1 2024.  

Total funding dropped to $327m, marking a 5% decline from the $344m raised in the same period last year.  

This downward trend follows a short-lived recovery in H2 2024 when funding rose to $514m across 34 deals.  

The persistent contraction in investment and deal flow highlights ongoing investor caution in the European InsurTech market as it faces macroeconomic uncertainty and maturing business models. 

UK secured a third of all European InsurTech deals as they dominated the region in H1 

The UK remained the leading market for InsurTech activity in Europe, securing 11 deals in H1 2025, which accounted for a 35% share — slightly down from the 14 deals (38% share) recorded in H1 2024.  

Spain followed with five deals (16% share), up from four deals (11% share), while France entered the top three with four deals (13% share), replacing Germany, which had registered seven deals (19% share) in the previous year.  

Despite the overall slowdown, Spain and France have gained ground, pointing to a more diversified regional landscape as emerging players seek to capture a greater share of InsurTech activity across Europe. 

Weecover, Spain’s leading InsurTech in embedded insurance, secured $4.4m in a funding round to fuel its growth and international expansion, positioning it among the top European InsurTech deals in the first half of the year 

The round was led by Swanlaab Venture Factory, with participation from existing backer Nauta and strategic investors including La Roca Capital, Bankinter, Prosegur and Íope Ventures.  

Weecover’s Insurance-as-a-Service platform provides a full-stack API-driven solution that enables retailers, e-commerce firms, financial institutions and digital apps to embed insurance products seamlessly into their customer journeys.  

Its multi-product, multi-carrier model supports the full insurance lifecycle—from distribution to after-sales—allowing consumer-facing businesses to launch tailored insurance offerings in just weeks.  

With a growing footprint in Spain and markets like France, Portugal, Andorra and Mexico, Weecover transacted over 100,000 insurance contracts annually by end-2024. The company is now integrating generative AI into its operations to enhance service efficiency and cost-effectiveness.  

As embedded insurance continues to redefine how protection products are distributed, Weecover is consolidating its role as a key enabler of digital insurance infrastructure in Europe. 

Product Updates & Launches

• dacadoo unveils Gen 5 platform with Health Score upgrade – dacadoo has launched Generation 5 of its digital health engagement platform, with new features designed to give users clearer insight into their wellbeing and clients more flexibility in how the platform is delivered. Read the full story here.
• Plutus launches AI insurance tools on ServiceNow - Plutus, a newly launched company founded by former ServiceNow executives, has entered the market with a focus on developing AI-native solutions for the insurance industry. Read the full story here.
• Slice expands InsurTech tools with new commercial solution – Slice Insurance, a US-based InsurTech company known for its AI-first approach to insurance, has launched an upgraded proprietary platform designed to streamline mid-market and small business risk submissions. Read the full story here.

InsurTech Partnerships

• iBox partners with bolttech to debut TecProtec in Indonesia – bolttech has partnered with iBox, Indonesia’s largest Apple Premium Reseller and a business unit of Erajaya Digital, to launch TecProtec with AppleCare Services, a new premium protection solution now available to iPhone customers in Indonesia. Read the full story here.
• Allianz UK to underwrite home and motor insurance for Sainsbury’s - Sainsbury’s Bank and Allianz UK have entered into a new partnership aimed at offering home and motor insurance to Sainsbury’s Bank’s existing customer base. Read the full story here.
• AXA XL partners with Fenix24 to boost cyber resilience for clients – AXA XL, a leading provider of cyber insurance, has partnered with Fenix24, a global expert in ransomware response and recovery, to offer enhanced cybersecurity assessment services to its cyber policyholders across North America. Read the full story here.

Meet the world's most innovative InsurTechs - Download the latest InsurTech100 list for free.

The InsurTech100 is an annual list of 100 of the world’s most innovative InsurTech companies selected by a panel of industry experts and analysts. These are the companies every leader in the insurance industry needs to know about as they consider and develop their digital transformation strategies.

Download the report here.

Funding Updates

• Cyata secures $8.5m to bring control to AI agent identities – Cyata, a cybersecurity startup based in Tel Aviv, has emerged from stealth with a focus on securing AI agent identities within enterprise environments. Read the full story here.
• Novee AI lands £1.6m to scale underwriting platform – UK-based startup Novee AI has raised £1.6m in pre-seed funding to expand its generative AI platform for commercial and specialty insurance underwriting. Read the full story here.
• DynaRisk secures $4.7m to scale cyber insurance tools – DynaRisk, a London-based cyber risk management company, has raised $4.7m in funding to expand its international footprint and accelerate product innovation. Read the full story here.

Other InsurTech News

• Best low-code AI platforms for rapid FinTech dev – As investor scrutiny intensifies and funding windows narrow, getting a clickable MVP into stakeholders’ hands fast is becoming essential in FinTech product development. AI-powered low-code platforms claim to slash development time from weeks to mere hours, offering a competitive edge for teams under pressure. To put these claims to the test, custom software development company Symfa examined four leading contenders: Marblism, Vercel’s v0, Bolt.new, and Glide. Read the full story here.
• How people and technology shape the future of the London Market - The London Market’s enduring strength lies in its unique DNA, centred on expertise, face-to-face collaboration, and bespoke problem-solving. Novidea, a prominent technology provider within the market, highlights how this ecosystem’s future depends on combining tradition with innovation to stay competitive amid rising pressures from rival hubs like Frankfurt and Paris post-Brexit. Read the full story here.
• Mox unveils new digital insurance with QBE – Mox, a Hong Kong-based virtual bank backed by Standard Chartered, PCCW, HKT and Trip.com, has launched its first general insurance product, Personal Accident Cushion, underwritten by QBE. Read the full story here.

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