Insurtech Valuation Multiples: 2025 Insights & Trends
By Lior Ronen | Founder, Finro Financial Consulting
The insurtech industry has been steadily reshaping how insurance operates. By integrating advanced technologies like AI, IoT, and big data, it’s addressing inefficiencies and enhancing the customer experience.
As these companies evolve, understanding how they’re valued becomes essential for investors, founders, and industry professionals alike.
This article explores the valuation landscape for insurtech startups in 2025. We’ll break down the key metrics—revenue multiples, EBITDA multiples, and discounted cash flow (DCF)—and examine how they apply across different insurtech niches.
Whether you’re looking to understand market trends or gain insights into specific valuation methods, this guide is designed to provide practical, actionable information.
To make things even more valuable, we’re including a full downloadable dataset covering valuation multiples for 110+ companies.
Let’s get into it.
Insurtech, or “insurance technology,” refers to the innovative use of technology to transform the insurance industry. It spans a diverse range of businesses, from platforms connecting customers to insurers, like Insurify and The Zebra, to companies like Lemonade and Hippo, which operate as fully digital insurance carriers.
What sets insurtech apart is its ability to leverage technologies like artificial intelligence (AI), the Internet of Things (IoT), machine learning, and big data analytics. For instance, companies like Cytora and Betterview use advanced analytics to refine underwriting processes, while tools like those offered by Snapsheet and Tractable automate claims management, making it faster and more accurate.
Insurtech also addresses inefficiencies within traditional insurance models. Platforms such as Policygenius streamline policy shopping, while companies like Cover Genius embed insurance directly into e-commerce and travel platforms, offering a more seamless experience for customers. Meanwhile, the rise of data and analytics providers like Carpe Data helps insurers gain actionable insights, enabling better decision-making across the board.
Each of these players contributes to reshaping how insurance is sold, serviced, and experienced. Up next, we’ll dive deeper into the specific niches within the insurtech industry and explore how they’re shaping this transformation.
Building on the foundation of what insurtech is, the industry can be better understood by breaking it into distinct niches. This segmentation not only highlights the diversity of solutions within insurtech but also helps in analyzing trends, valuations, and opportunities more effectively.
1. Insurance Marketplaces: Platforms like Insurify and The Zebra connect customers with insurers, simplifying comparisons and purchases. For example, Jerry offers an AI-driven experience to help users find and switch to the best auto insurance policies seamlessly.
2. Digital Insurance Carriers: Companies like Lemonade and Hippo are full-stack, tech-driven insurers offering policies directly to consumers. For instance, Root Insurance uses telematics to tailor auto insurance premiums based on driving behavior.
3. Claims Management & Automation: Tools from companies such as Snapsheet and Tractable automate claims handling. For example, Shift Technologyleverages AI to detect fraud and streamline the claims review process.
4. Underwriting & Risk Assessment: Advanced analytics providers like Cytora and Betterview enable insurers to refine risk profiling and improve pricing accuracy. For instance, Cape Analytics uses geospatial data to assess property risks more effectively.
5. Insurance for Specific Verticals: Niche players such as Next Insurance and Petplan focus on tailored solutions for unique markets like small businesses, pets, and cyber risks. For example, Slice Labs specializes in on-demand insurance for gig workers and short-term rental hosts.
6. Embedded Insurance: Companies like Cover Genius and Zego integrate insurance into non-insurance platforms, offering coverage seamlessly alongside other services. For instance, Trov embeds insurance into gig economy platforms for flexible, usage-based coverage.
7. Reinsurance & Risk Transfer: Platforms like Instanda and Vesttoo provide tools for reinsurers to manage and share risk more efficiently. For example, Kettle uses machine learning to predict and underwrite wildfire risks for reinsurers.
8. Insurtech Infrastructure: Providers such as Socotra and BriteCore offer APIs and SaaS platforms that enable traditional insurers to modernize and digitize their operations. For instance, Unqork helps insurers create no-code solutions for policy administration.
9. Data & Analytics Providers: Companies like Carpe Data and Verisk use big data and AI to generate actionable insights, improving decision-making in underwriting, pricing, and claims management. For example, Friss specializes in fraud detection using predictive analytics.
These niches, paired with real-world examples, highlight the diversity and innovation within the insurtech ecosystem. With this segmentation in mind, we can now shift focus to understanding the valuation methods and trends shaping these niches and the industry as a whole.
Now that we’ve mapped the insurtech industry and its diverse niches, let’s turn to one of the most critical aspects of understanding the market: how startups in this space are valued. Whether you’re an investor, founder, or industry observer, knowing how valuations are determined is essential for making informed decisions.
At its core, a startup valuation is an estimate of the company’s worth, based on factors like its business model, financial performance, market potential, and growth prospects. In the insurtech industry, where technology innovation and scalability are key drivers, valuations are closely tied to the metrics that best reflect a company’s potential.
Here are the three most common methods used to value insurtech startups:
Revenue multiples are widely used for growth-focused startups, especially those not yet profitable. This method compares a company’s valuation to its revenue, offering a straightforward way to benchmark against industry peers. For instance, insurtech niches like Digital Insurance Carriers often command higher revenue multiples due to their ability to scale rapidly and generate recurring income streams.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) multiples are particularly relevant for mature or profitability-focused insurtech startups. This metric highlights a company’s operational efficiency and profitability. For example, niches such as Claims Management & Automation may see valuations tied to EBITDA multiples as they often focus on driving operational cost savings.
DCF is a forward-looking valuation method that calculates a company’s worth based on its projected future cash flows, discounted to their present value. While less commonly used for early-stage startups, it is particularly useful for evaluating niches like Reinsurance & Risk Transfer, where predictable cash flow patterns are more likely.
Each of these methods provides unique insights into a startup’s value and is often applied based on the company’s stage, niche, and financial characteristics. With these valuation tools in mind, we can now explore how these metrics are applied specifically to insurtech niches and the broader market in 2025.
Having explored the valuation methods used for insurtech startups, we can now dive into how these metrics are applied across the industry and its niches.
By analyzing key trends in revenue and EBITDA multiples, along with notable benchmarks for public, private, and M&A deals, we gain a clearer picture of the insurtech valuation landscape in 2025.
Valuation multiples vary significantly across the insurtech sector, driven by niche-specific dynamics and market maturity. Here are some key trends:
Revenue Multiples: Public insurtech companies show averages in the range of 6–10x revenue, while private companies often command higher multiples, reflecting their growth potential. M&A deals frequently exhibit premium multiples, particularly for high-growth startups.
EBITDA Multiples: Mature insurtech companies with profitability, especially those focusing on claims management or infrastructure, see EBITDA multiples averaging between 12–18x, highlighting the value placed on operational efficiency.
Public vs. Private Trends: Public companies generally exhibit lower multiples due to market scrutiny and broader economic conditions. Private valuations tend to factor in optimistic growth projections, especially in innovative niches like embedded insurance or AI-driven analytics.
Insurance Marketplaces: High revenue multiples are typical due to scalability and recurring revenue models. Companies like Insurify and Jerry benefit from increasing consumer adoption of digital comparison platforms.
Digital Insurance Carriers: Competitive differentiation through technology and direct-to-consumer models drives valuations. Firms like Lemonade and Root Insurance see steady investor interest due to their ability to scale while innovating.
Claims Management & Automation: With AI tools becoming essential for cost reduction, companies like Tractable and Shift Technology have attracted higher valuations. These firms exemplify efficiency gains that appeal to insurers.
Underwriting & Risk Assessment: Startups like Cytora and Cape Analytics leverage IoT and big data to refine risk profiling, leading to increasing valuation benchmarks in this niche.
Insurance for Specific Verticals: Tailored solutions for markets like pets, cyber insurance, or gig workers have seen growing investor interest. Companies like Next Insurance often enjoy strong revenue multiples due to untapped opportunities.
Embedded Insurance: As integration with e-commerce and travel platforms becomes more prevalent, firms like Cover Genius see valuation premiums. Embedded insurance offers high scalability, attracting both investors and partners.
Reinsurance & Risk Transfer: Companies like Vesttoo and Kettle are redefining traditional reinsurance with predictive analytics and risk-sharing innovations, which bolster valuations.
Insurtech Infrastructure: Providers like Socotra and Unqork deliver APIs and platforms that empower insurers to modernize, leading to strong operationally focused multiples.
Data & Analytics Providers: Firms such as Verisk and Carpe Data continue to command interest due to their pivotal role in decision-making, supported by robust and scalable data-driven models.
These insights demonstrate how diverse valuation drivers are across the insurtech landscape. In the next section, we’ll explore notable deals and market movements that highlight these trends in action, further solidifying our understanding of the 2025 valuation environment.
Building on the valuation insights explored earlier, examining recent M&A deals provides a real-world perspective on how these metrics play out.
These transactions reveal not only the demand for innovative solutions but also how different niches within the insurtech space are valued by acquirers and investors.
Notable M&A Deals in Insurtech
Policygenius Acquired by Zinnia (April 2023)
Valuation: $775 million
Revenue Multiple: ~11.6x
This acquisition underscores the increasing value of insurance marketplaces, driven by scalable models and strong consumer adoption. Policygenius’ ability to aggregate data and connect consumers with tailored policies made it a prime target.
GoCompare Acquired by Future (November 2020)
Valuation: $793 million
Revenue Multiple: ~6.1x
Lower than some peers, this multiple reflects GoCompare’s mature market position and competitive landscape. It demonstrates that while scalability remains a key driver, competition can temper valuation premiums.
Compare.com Acquired by Insurify (March 2023)
Valuation: $925 million
Revenue Multiple: ~40.2x
A standout transaction with a high multiple, likely driven by Insurify’s strategic aim to dominate the marketplace niche. This deal highlights how competitive positioning can drive premium valuations.
Majesco Acquired by Thoma Bravo (September 2021)
Valuation: $594 million
Revenue Multiple: ~4.1x
As a provider of cloud-based software solutions, Majesco’s acquisition highlights the importance of insurtech infrastructure in enabling digital transformation for insurers. The relatively low multiple reflects its mature stage and steady revenue.
EvolutionIQ Acquired by CCC Intelligent Solutions (December 2024)
Valuation: $730 million
Revenue Multiple: ~20.2x
This deal underscores the growing importance of claims management and automation. EvolutionIQ’s AI-driven solutions enhance efficiency and decision-making, justifying the premium multiple.
What These Deals Reveal About Market Dynamics
High Growth Niche Premiums: Insurance marketplaces and digital carriers consistently attract higher multiples due to their scalability and tech-first models. M&A activity in these niches reflects investor confidence in their potential for market dominance.
Impact of Competitive Positioning: Companies with unique data capabilities, innovative user experiences, or dominant market shares—like Policygenius and Insurify—command higher valuations.
Mature vs. Growth Markets: Deals involving mature companies, such as GoCompare, often reflect moderate multiples as the market for these players stabilizes. On the other hand, emerging niches like embedded insurance and AI-powered analytics continue to attract premium multiples.
These key deals offer a snapshot of how valuations vary by niche, growth stage, and competitive positioning.
In the next section, we’ll address the challenges and opportunities facing the insurtech industry as it continues to evolve, shedding light on what’s ahead for startups and investors alike.
Building on the insights from recent M&A deals, it’s clear that while the insurtech industry presents exciting growth prospects, it also faces significant hurdles.
Understanding these challenges and opportunities is crucial for stakeholders aiming to navigate the evolving valuation landscape effectively.
Challenges in Insurtech Valuation
Market Saturation: As the insurtech space grows, many niches—particularly insurance marketplaces and digital carriers—are becoming crowded. Differentiation is increasingly difficult, and competition often drives down valuation multiples for less innovative players.
Regulatory Hurdles: Insurance remains one of the most heavily regulated industries worldwide. Insurtech companies must navigate complex, region-specific compliance requirements, which can slow down growth and inflate operational costs.
Profitability Pressures: While many startups prioritize growth over profitability, investors are becoming more cautious about funding companies with no clear path to positive cash flow. This is especially true in economic environments where capital becomes more expensive.
Opportunities in Insurtech Valuation
Untapped Niches: Emerging areas such as embedded insurance and IoT-driven risk assessment provide significant growth opportunities. Companies offering tailored solutions in these underdeveloped niches often command premium valuations.
Global Expansion: Many markets, particularly in developing regions, are underpenetrated in terms of digital insurance solutions. Insurtechs that successfully adapt their models to serve these markets stand to unlock substantial value.
AI and Data Analytics: The growing importance of advanced analytics and AI for underwriting, claims automation, and customer insights creates opportunities for companies leading in these technologies to attract higher multiples.
Sustainability and ESG Integration: Increasing demand for environmentally sustainable and socially responsible solutions offers a new avenue for growth. Insurtechs focusing on climate risk insurance or products tailored to underserved populations are likely to benefit.
By addressing these challenges and capitalizing on opportunities, insurtech companies can enhance their valuation potential.
In the final section, we’ll summarize these insights and introduce tools and resources to help you explore valuation data and trends further.
With a clear understanding of the challenges and opportunities in insurtech valuation, it’s time to dive deeper into the numbers. To help you stay ahead of the curve, we’ve compiled a comprehensive Insurtech Valuation Multiples 2025 Spreadsheet.
This resource offers detailed insights into over 110 companies across 9 key niches, along with valuation metrics like revenue multiples, EBITDA multiples, and M&A deal data.
Why Download This Data Set?
Comprehensive Coverage: Includes valuation data for public companies, private startups, and notable M&A transactions.
Actionable Insights: Benchmark your analysis with real-world metrics across the insurtech ecosystem.
Segmented for Clarity: Organized by niches such as digital carriers, claims automation, and underwriting analytics, making it easy to focus on your area of interest.
Market Trends at Your Fingertips: Explore the latest revenue multiples and key factors shaping valuations in 2025.
Why Download This Data Set?
Comprehensive Coverage: Includes valuation data for public companies, private startups, and notable M&A transactions.
Actionable Insights: Benchmark your analysis with real-world metrics across the insurtech ecosystem.
Segmented for Clarity: Organized by niches such as digital carriers, claims automation, and underwriting analytics, making it easy to focus on your area of interest.
Market Trends at Your Fingertips: Explore the latest revenue multiples and key factors shaping valuations in 2025.
How to Get It
For €17.90, you’ll gain access to this ready-to-use Excel spreadsheet. Instead of spending countless hours on research, you can have all the relevant insights at your fingertips.
Let’s move forward to our concluding thoughts and explore how you can apply these insights to stay ahead in the ever-evolving Insurtech industry.
Don’t miss this opportunity to explore detailed valuation insights and uncover trends that can guide your next strategic decision. As we wrap up, let’s summarize the key takeaways from this guide and how you can apply them to your insurtech endeavors.
Insurtech is at the forefront of transforming the insurance industry, with technology-driven innovation reshaping everything from underwriting to claims processing. As this space grows, understanding valuation trends has become essential for investors, founders, and industry professionals.
Through this guide, we’ve explored:
The foundations of insurtech and its diverse niches, from insurance marketplaces to data analytics providers.
Key valuation methods like revenue multiples, EBITDA multiples, and DCF, and how they apply to different business models.
Insights from notable M&A deals that highlight the factors driving premiums in various niches.
Challenges such as market saturation and regulatory hurdles, balanced by opportunities in untapped markets, emerging technologies, and sustainability-focused solutions.
As the industry continues to evolve, so too will the factors influencing valuations. Whether you’re analyzing a startup’s potential or exploring investment opportunities, staying informed is critical.
If you haven’t already, don’t forget to download the Insurtech Valuation Multiples 2025 Spreadsheet for an in-depth look at the numbers behind these insights. It’s your go-to resource for actionable data and industry benchmarks.
The future of insurtech is dynamic, and opportunities are plentiful for those who can navigate its complexities. Here’s to making informed decisions and unlocking the full potential of this transformative industry.
Insurtech Niches Drive Growth: Understanding insurtech niches like digital carriers, marketplaces, and claims automation is critical for analyzing trends and valuation potential.
Valuation Methods Vary by Stage: Revenue multiples dominate for growth startups, while EBITDA multiples and DCF apply to mature or cash-flow-positive companies.
M&A Deals Highlight Opportunities: Recent acquisitions show high valuation premiums for scalable, innovative solutions, especially in underpenetrated or technology-driven niches.
Challenges and Opportunities Coexist: Market saturation, regulations, and profitability challenges persist, but untapped markets, sustainability, and AI adoption offer significant upside.
Comprehensive Data Is Essential: Access to detailed valuation metrics, like the Insurtech Valuation Multiples 2025 Spreadsheet, is crucial for making informed decisions.