African insurtech startups raised $200,000 in the second quarter of 2025, primarily attributed to a single deal. This was disclosed in the State of Insurtech Report released by the global startup analytics company, CB Insights.
The total raised on the continent in Q2 represents a paltry 0.018 per cent of the total $1.1 billion raised by insurtech companies worldwide in Q2 2025. It also makes Africa the least funded region in terms of insurtech.
Africa is followed by the Latin American region, where insurtech startups raised $2 million across 2 deals. Next is Canada, where startups raised $13 million across 2 deals. In the Asian region, companies raised $22 million across 10 deals, while Europe witnessed more than $200 million spread across 19 insurtech deals.
The United States of America remain the most funded region and country in the world as startups in the country were able to raise more than $800 million across 55 deals.
Overall, global insurtech funding for the quarter stood at $1.1 billion, representing a 21 per cent quarterly decline from the $1.4 billion raised in Q1 2025. The total number of deals also fell from 100 in Q1 to 91 in the quarter under review. The decline in the sector was attributed in part to the lack of AI investment witnessed across other tech sectors.
“The median insurtech deal size fell by 19% to $4.2M in 2025 YTD. Unlike the broader venture environment, insurtech has not experienced an AI-driven funding boom in recent quarters,” the report noted.
Global insurtech funding in the first half of 2025 stands at $2.4 billion, a total which puts it well on course to at least equal last year’s total of $4.6 billion.
It must, however, be stated that insurance technology funding has continued to decline since 2021, when startups around the world raised $16.8 billion across 817 deals. In 2022, the total declined by almost half to $8.7 billion. The story was the same in 2023, as global insurance tech funding dropped to $4.9 billion.
The rate of decline subsided in 2024. Startups around the world raised $4.6 billion. With this year’s numbers mirroring last year’s, it is safe to conclude that the space has settled into its actual value.
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The story of Insurtech funding in Africa
The funding reflects the positioning of that sector in the African tech scene, as it could be considered the often-overlooked sector of the African tech ecosystem, way behind the more vibrant sectors like Fintech, e-logistics, Edtech, Agritech, cleantech and others.
Indeed, the lucrativeness of these sectors reflects their vibrancy beyond tech. Africans worry more about their finances than anything else. They also worry about food, transportation, education and many others.
However, insurance is not considered as much of a necessity across the continent. In Nigeria, for instance, only 10 per cent of citizens have health insurance, which is the most common form of insurance according to a report by one of the leading insurance companies in the country, Leadway Insurance.
In Kenya, only 25 per cent of people have health insurance. In South Africa, the story is far more impressive, with at least 60 per cent of South Africans having some form of insurance, although this is mostly funeral insurance. With the exclusion of funeral insurance, only 19 per cent of citizens have other forms of insurance.
Compare this to 64 per cent of Nigerians having access to financial services as of 2023, 85 per cent of Kenyans as of 2024, and between 84 and 98 per cent in South Africa, then you begin to understand why financial technology would always get the highest share of investments.
Yet, the argument can be made that financial technology companies were responsible for the wide financial inclusion witnessed across Africa today. Thus, it behoves the insurance technology company to do the work of bringing Africans to see the need for insurance and normalise obtaining one for various needs by making it easily accessible and affordable.
When this becomes the case, adoption would grow, the market would become ripe, and investments would flow in.
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