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AI-focused companies capture nearly all insurtech funding in Q2 2026
Total insurtech funding rose to $2.4 billion in Q2 2026, even as early-stage funding fell 51.8% quarter over quarter.
Insurtech funding surged in the second quarter of 2026, reaching $2.44 billion, the highest level since Q2 2022, according to Gallagher Re’s Global Insurtech Report, cited by Risk & Insurance. Deal count also climbed to 107, matching a high last seen in Q1 2024.
Nearly all of the capital, 99.1%, flowed to AI-focused companies, totaling $2.42 billion across 95 deals. While overall funding increased, early-stage insurtech funding declined 51.8% quarter over quarter to $264.19 million in Q2 2026.
Mega-rounds were a key driver of the rebound. Gallagher Re found $1.67 billion was tied to deals of $100 million or more, the highest total for such rounds since Q4 2021, and the average deal size rose for a fourth consecutive quarter to $29.46 million.
The report also pointed to shifts across property and casualty and life and health categories. P and C insurtechs saw funding more than double from $910 million in Q1 2026 to $1.84 billion in Q2, while L and H funding slipped from $720 million to $600 million, and early-stage funding trends suggested a narrowing innovation pipeline.