Insurtech Funding Hits $2.44 Billion in Second Quarter

News Desk: Insurtech companies attracted 2.44 billion dollars in funding during the second quarter of 2026, marking the strongest quarterly total since the same period in 2022 according to a report from Gallagher Re. The surge came as artificial intelligence took an overwhelming share of investor attention, with 99.1 percent of the capital flowing to AI focused firms.

Property and casualty insurtechs drove much of the rebound, more than doubling their funding from 910 million dollars in the prior quarter to 1.84 billion dollars. Life and health companies saw a pullback, raising 600 million dollars compared with 720 million dollars in the first three months of the year.

Deal activity remained lively, with 107 transactions recorded, matching the highest quarterly count seen since early 2024. The United States continued to dominate, accounting for 61 percent of the deals, while the United Kingdom, France and South Korea also featured among the more active markets.

Every funding round above five million dollars went to an AI related company, underscoring how thoroughly the technology has become embedded in the sector’s growth story. Large rounds played an outsized role, with deals of 100 million dollars or more making up more than two thirds of the total capital raised.

Gallagher Re noted that this concentration of money into a smaller group of later stage and AI native businesses reflects both the maturity of certain platforms and the intense investor appetite for tools that can reshape underwriting, claims and risk assessment.

The report also pointed to the physical infrastructure required to support artificial intelligence as a growing source of insurable risk. Global spending on AI related infrastructure is projected to climb sharply in the coming years, creating new pools of assets that insurers and reinsurers will need to cover.

At the same time, early stage funding declined notably even as overall deal numbers held steady, suggesting that capital is becoming more selective and focused on companies already demonstrating clear traction.

Industry observers see the quarter as further evidence of the deepening convergence between AI and insurance technology. While overall funding volumes have recovered from the quieter periods that followed the 2021 peak, the money is flowing into fewer, more specialized businesses rather than broadly across the ecosystem.

The result is a market that looks more concentrated yet continues to attract significant investment from both venture capital and private equity players.