AI Mega-Rounds Propel Insurtech Funding to Four-Year High

Insurtech companies provide digital underwriting, claims processing, distribution and risk-analysis tools that can reduce costs across the insurance industry. Funding levels are closely watched as a measure of how quickly carriers are modernizing legacy operations. Gallagher Re said quarterly investment had hovered near $1.1 billion for much of the past three years following the 2021 boom, before demand for AI-powered insurance infrastructure began drawing larger checks.

Global insurtech funding reached $2.44 billion in the quarter ended June 30, the highest since the second quarter of 2022 and about 50% above the first quarter, Gallagher Re said in a report released on August 6, 2026. AI-focused companies captured $2.42 billion, or 99.1% of the total, including every deal above $5 million. Early-stage funding nevertheless fell 51.8% to $264.19 million across 54 deals, signaling that capital remained concentrated in larger transactions.