Global InsurTech funding reached $2.44 bn in the second quarter of 2026, its highest level since Q2 2022, driven by large financing rounds and investment in artificial intelligence-focused companies, according to Gallagher Re’s latest Global InsurTech Report.
The quarterly total increased from approximately $1.63 bn in Q1 2026, while transaction volume rose from 81 to 107 deals, matching the highest quarterly count since Q1 2024.
- Global InsurTech funding rose to $2.44 bn in Q2 2026, its highest level since Q2 2022, as transaction volume increased to 107 deals.
- AI-focused companies secured $2.42 bn, representing 99.1% of total investment, while mega-rounds of $100 mn or more accounted for $1.67 bn.
- P&C InsurTech funding more than doubled to $1.84 bn, but early-stage investment declined 51.8% to $264.19 mn despite an increase in deal activity.
AI-focused InsurTech companies attracted $2.42 bn across 95 transactions, accounting for 99.1% of total funding. According to Gallagher Re, every financing round exceeding $5 mn involved an AI-focused business.
Large transactions accounted for most of the increase. Funding rounds valued at $100 mn or more generated $1.67 bn, approximately 68% of the quarterly total. This was the highest level of mega-round funding since Q4 2021, when 13 transactions attracted $3.78 bn.
The average InsurTech deal size increased for the fourth consecutive quarter to $29.46 mn.
Annual total insurtech funding volume and transaction count
P&C InsurTech drives quarterly funding growth
Property and casualty (P&C) InsurTech companies attracted $1.84 bn in Q2, more than double the $910 mn recorded in the previous quarter.
One of the largest transactions was a $520 mn Series F financing round completed by ICEYE, a provider of satellite imagery and Earth observation technology. The investment represented approximately one-fifth of total quarterly funding.
P&C InsurTech deal count increased from 55 to 66 transactions. Insurer-classified InsurTech companies accounted for 12.1% of P&C deals, their highest proportion since Q4 2014.
The quarter also included two financing rounds of at least $100 mn involving Corgi, an insurer focused on startups.
Life and health (L&H) InsurTech investment declined from $720 mn in Q1 to $600 mn in Q2. However, the segment recorded 41 transactions, its highest quarterly deal count since Q3 2022.
Early-stage funding falls despite recovery in deal activity
Early-stage InsurTech investment fell 51.8% quarter over quarter, from $548.50 mn to $264.19 mn, reaching its lowest level in four quarters.
The decline occurred despite an increase in early-stage deal count to 54, the highest since Q1 2024, when 64 transactions were recorded. Average early-stage deal size dropped 50.6%, from $14.06 mn in Q1 to $6.95 mn in Q2.
Early-stage funding declined across both major insurance segments, falling 61.4% in P&C and 34.4% in L&H.
The figures indicate that the recovery in overall investment was concentrated in larger financing rounds, while smaller companies raised less capital despite completing more transactions.
Insurers and reinsurers participate in 27 technology investments
Insurance and reinsurance companies backed 27 technology investment rounds in Q2 2026, compared with 32 in the preceding quarter. Early-stage businesses accounted for 51.9% of insurer-backed transactions.
MS&AD Group-linked investors were among the most active. Mitsui Sumitomo Insurance Venture Capital invested in seven companies, while MS&AD Ventures backed three.
Gallagher Re also highlighted partnerships involving Ageas UK and Wrisk, Allianz Turkey and nettle, Chubb and Insify, Liberty Mutual and ICEYE, and Munich Re and Sixfold.
The latest figures extend a recovery in InsurTech fundraising that began in late 2025. Quarterly funding averaged $1.65 bn during Q4 2025 and Q1 2026, compared with approximately $1.1 bn over the preceding two and a half years.
However, the divergence between rising overall investment and falling early-stage funding suggests that capital is increasingly concentrated in larger, predominantly AI-focused InsurTech companies.
