InsurTech & AI Underwriting
InsurTech funding hit a four-year high of $2.44B in Q2 2026, and 99.1% of it went to AI companies. Every round above $5M was AI-focused.
Growth Overview
12-Month Trend
Growth Rate
Market Size Projection
Overview
Software that automates underwriting, pricing, claims, and distribution for insurers, brokers, and managing general agents. Global insurtech funding reached $2.44B in Q2 2026 across 95 deals, the highest quarterly total since Q2 2022, and $2.42B of it went to AI-focused companies. Every round above $5M was AI-focused. The market sits at $23.5B in 2026 and is projected to reach $132.7B by 2034 at 24.1% CAGR. The shift is structural rather than cosmetic: a meaningful cohort of insurtechs now runs AI as the primary underwriting and risk-selection engine rather than as a decision aid.
What's Driving This Growth?
- ▸Q2 2026 insurtech funding hit $2.44B across 95 deals, the highest since Q2 2022, with 99.1% going to AI-focused companies
- ▸P&C insurtech funding more than doubled quarter over quarter, from $910M in Q1 2026 to $1.84B in Q2
- ▸AI moved from decision support to the core pricing and risk-selection engine at a growing cohort of carriers and MGAs
- ▸Early-stage funding fell 51.8% QoQ while deal count rose, pushing capital toward proven AI underwriting over concept-stage distribution plays
Market Signals
- ✓Gallagher Re reported $2.44B in Q2 2026 global insurtech funding across 95 deals, a four-year high; AI-focused companies took $2.42B and every round above $5M went to an AI company
- ✓Mega-rounds of $100M+ accounted for $1.67B, or 68.4%, of the quarterly total, while early-stage funding fell 51.8% QoQ to $264M even as early-stage deal count rose to 54
- ✓Q1 2026 set the pattern with 95.2% of $1.63B going to AI companies; L&H funding slipped from $720M to $600M while P&C more than doubled, concentrating capital in property and casualty AI
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