InsurTech Funding: A Quarter-by-Quarter Analysis

All funding deals in the InsurTech Market over the last years

Below is the table listing all the deals. You can find our methodology at the end of this page.

If you want a deeper understanding of the market and its current dynamics, get our report covering the InsurTech Market.

Is InsurTech funding actually growing quarter after quarter?

InsurTech funding is still struggling to grow consistently. Over six quarters, we tracked 164 financings worth approximately $4.70 billion, but the biggest funding quarters were not the ones where the most startups raised money.

The market experienced two major surges. Funding jumped from $359.1 million in Q3 2025 to $1.22 billion in Q4, then reached $1.37 billion in Q2 2026. Both peaks were followed by sharp declines. Meanwhile, quarterly deal counts fell from 36 in Q2 2025 to a range of 24–27 throughout the following five quarters.

The difference between money raised and companies funded is especially visible in Q2 2026. That quarter attracted more than twice as much capital as Q2 2025, despite recording 12 fewer financings.

Our calculations also show that median round sizes moved unevenly. The median increased from $7 million in Q3 2025 to $22 million in Q4, before falling back to $12.5 million by Q3 2026.

There is clearly money available for InsurTech companies with convincing growth stories. What's missing, so far, is a sustained increase in the number of businesses securing investment.

Quarter	Deals	Capital	Median round
Q2 2025	36	$658.7M	$10.0M
Q3 2025	26	$359.1M	$7.0M
Q4 2025	27	$1,219.5M	$22.0M
Q1 2026	26	$676.3M	$17.1M
Q2 2026	24	$1,365.7M	$19.0M
Q3 2026	25	$421.5M	$12.5M

Why did InsurTech funding fall so sharply in Q3 2025?

The Q3 2025 InsurTech slowdown affected almost every measure of funding activity, making it one of the clearest periods of weakness in our analysis.

Deals fell from 36 to 26, a 27.8% decline, while recorded capital dropped 45.5%. Median financing also decreased from $10 million to $7 million.

We checked whether the decline was simply caused by fewer large transactions. Even after removing financings above $50 million, quarterly capital fell from $443.7 million to $270.1 million, a 39.1% reduction.

The slowdown reached several major categories. Digital insurers went from 12 deals to eight, while digital brokers and marketplaces dropped from eight to three. First financings also declined, from 11 to eight.

Smaller rounds became more common in the remaining deal mix. Financings under $5 million represented 42.3% of transactions, compared with 30.6% in the previous quarter.

Gallagher Re's global InsurTech report, published in November 2025, also identified an unusually weak quarter for deal activity. Its broader dataset recorded 76 transactions, the lowest number since Q2 2020.

The two datasets cover different financing universes, but they point toward the same weakness in deal activity. Fewer companies were raising, and the typical financing was getting smaller.

Why did InsurTech funding suddenly explode in Q4 2025?

InsurTech funding surged in Q4 2025 because investors started making much larger investments in established businesses. Capital more than tripled from the previous quarter, even though deal activity barely changed.

The median financing jumped from $7 million to $22 million. Seventeen of the quarter's 27 transactions reached at least $20 million, compared with just five in Q3.

Several large financings contributed to that jump. Axonic Insurance announced a $210 million preferred-equity investment led by LuminArx Capital, with Deutsche Bank participating, on October 29, 2025. The company said the investment would support growth in annuity distribution and technology development.

Digital insurers collectively attracted $760.8 million, while reinsurance and risk platforms raised $183.1 million. Underwriting and pricing software contributed another $107 million.

The rise was visible beyond one company. Seven financings exceeded $50 million, and the five largest accounted for 60.7% of quarterly capital.

Gallagher Re also reported a sharp global funding increase during Q4, with investment rising 66.8% to $1.68 billion. Its wider dataset showed stronger deal growth than ours, suggesting that the recovery was broader across the global industry than within our more selective sample.

Still, the shift toward bigger checks proved temporary. By Q1 2026, total capital had fallen 44.5%, and the median round was back below $20 million.

Was Q2 2026 really the strongest quarter for InsurTech startups?

Q2 2026 was the biggest quarter for InsurTech capital, but its underlying fundraising activity was surprisingly weak. The $1.37 billion headline depended heavily on just five transactions.

Those five financings accounted for approximately $1.04 billion, or 76.2% of the quarter's total. The other 19 transactions contributed $324.7 million.

For comparison, the market raised $425.3 million from financings of $50 million or less in Q1 2026, and $443.7 million in Q2 2025.

Deal activity also reached its six-quarter low, at 24 financings.

The difference between the median and average round is revealing. Q2's average financing reached $56.9 million, nearly three times its $19 million median. A few very large investments were pushing the average far above what most companies actually raised.

This is why we separate headline capital from funding excluding rounds above $50 million. The latter gives a clearer view of how the rest of the market is doing.

Quarter	Total capital	Capital excluding >$50M	Largest-round share
Q2 2025	$658.7M	$443.7M	11.4%
Q3 2025	$359.1M	$270.1M	24.8%
Q4 2025	$1,219.5M	$337.5M	17.2%
Q1 2026	$676.3M	$425.3M	17.2%
Q2 2026	$1,365.7M	$324.7M	40.3%
Q3 2026	$421.5M	$351.5M	16.6%

Was the Q2 2026 InsurTech boom basically just Alan?

Alan was responsible for approximately 40% of Q2 2026's recorded InsurTech funding, making its financing the biggest reason that quarter looked so strong.

On June 25, 2026, Alan announced a €480 million Series G at a €5.5 billion valuation. Prosus committed €400 million as part of the transaction, which included both primary and secondary equity.

The company's commercial performance helps explain the size of the investment. Prosus reported that Alan had exceeded €800 million in annual recurring revenue by Q1 2026, growing 53% year over year, and had become profitable in France.

Alan was already operating at a scale that most venture-backed insurers had yet to reach. The investment was intended to support international expansion and AI-powered healthcare products.

But Alan was far from the only company attracting large checks.

Corgi announced a $160 million Series B in May 2026, followed just three weeks later by a $106 million Series B1. Its valuation doubled from $1.3 billion to $2.6 billion between those announcements.

Corgi said it would use the capital to expand its insurance offerings, including coverage for technology businesses and emerging AI-related risks. Both financings were led by TCV.

Investors were willing to commit extraordinary amounts to companies pursuing large insurance markets, especially where technology could change underwriting, distribution or operating costs.

There are important differences in how the amounts should be interpreted. Alan's financing includes secondary equity and was subject to regulatory approvals. Corgi's consecutive financings were announced separately and are retained as distinct transactions in our calculations.

Are established InsurTech companies taking most of the funding?

Established InsurTech businesses have taken the overwhelming majority of investment during the biggest funding quarters, leaving new entrants with a much smaller share of the money.

In Q4 2025, follow-on rounds attracted approximately $1.21 billion, compared with just $12.3 million for first financings.

The imbalance was even more pronounced in Q2 2026. Follow-ons received approximately $1.35 billion, while companies completing their first recorded financing attracted only $14.1 million.

First-financing counts also weakened significantly. We identified 11 in Q2 2025, three in Q4 2025, five in Q1 2026 and four in Q2 2026.

The contrast with companies such as Alan, Axonic Insurance and Corgi is striking. These businesses could attract nine-figure investments while the number of newcomers securing their first financing remained relatively low.

That pattern began changing in Q3 2026, when first financings increased to nine and attracted $156.5 million.

Our first-financing classifications are based on identifiable financing histories, so they should be read as a measure of recorded market entry rather than proof that a company has never raised money through another mechanism.

Even with that limitation, the direction is clear: between late 2025 and mid-2026, funding became much more favorable to companies that had already attracted investment.

Are investors giving up on early-stage InsurTech startups?

Early-stage InsurTech startups are still getting funded, but they have received a remarkably small portion of the capital during the biggest investment quarters.

In Q2 2026, early-stage companies accounted for 54.2% of deals but received only 7.3% of recorded capital. Later-stage businesses represented 41.7% of transactions and collected 89.8% of the money.

The situation was similar in Q4 2025, when later-stage companies received 78.5% of capital despite representing 40.7% of financing activity.

Early-stage funding improved in Q3 2026. Capital increased from $99.7 million to $155.6 million, while later-stage funding declined to $257.6 million.

The shift also appeared in the broader industry. Gallagher Re's August 2026 report found that global early-stage funding had fallen 51.8% in Q2, despite 54 early-stage financings.

Early-stage companies continued raising throughout the downturn, then captured a much larger share of investment as megarounds became less dominant.

Whether that improvement can continue is still unclear. The latest quarter offers a promising start, but the previous financing cycle was heavily skewed toward established companies.

Is InsurTech funding recovering now, despite the latest drop in capital?

InsurTech funding is showing early signs of recovery among smaller companies, even though Q3 2026 recorded a 69.1% collapse in headline capital.

Several developments make the quarter more encouraging than that number suggests.

First financings increased from four to nine. Capital excluding rounds above $50 million rose 8.3%, while early-stage investment recovered to $155.6 million.

Deal activity improved slightly, from 24 to 25 financings, and the number of transactions between $5 million and under $20 million increased from four to 10.

More companies were accessing meaningful venture funding without requiring exceptionally large rounds.

American Growth Insurance provides a useful example of the changing mix. The AI-enabled brokerage platform launched with nearly $70 million in committed equity from Rockbridge Growth Equity and Atomic. Its business model combines brokerage acquisitions with technology designed to improve agency productivity.

The commitment should be distinguished from cash already deployed, but it shows how investors are backing newer insurance-distribution models.

At the same time, the overall market remains smaller in transaction volume than it was at the start of our observation period. The median financing also declined to $12.5 million.

As of now, we see a recovery in funding distribution and new-company activity. A broader market recovery would require this improvement to last beyond one quarter.

Are digital insurers taking all the InsurTech investment?

Digital insurers remain the largest recipients of InsurTech funding, but their lead in capital has not translated into consistent growth in deal activity.

They attracted $760.8 million in Q4 2025 and $940.3 million in Q2 2026. Those enormous totals were shaped by large financings, including Alan's Series G.

Yet the number of digital-insurer transactions fluctuated between seven and 12 throughout the six quarters. The category recorded 12 deals in Q2 2025, dropped to seven in Q1 2026, recovered to nine in Q2 and fell back to seven in Q3.

The category also became less dominant in the latest quarter. Digital insurers attracted $136.4 million in Q3 2026, while brokers and marketplaces raised $147.6 million.

This shift partly reflects the absence of an Alan-sized transaction, but it also shows how much the funding picture can change when smaller categories attract a larger number of ordinary venture rounds.

Digital insurers still attracted the most capital over the period. Their advantage came primarily from the size of selected financings rather than from a growing number of funded companies.

Are digital insurance brokers becoming the hottest InsurTech category?

Digital brokers and marketplaces currently have the clearest momentum in InsurTech deal activity. Their financing count rose from two in Q4 2025 to six in Q1 2026, stayed at six in Q2 and reached nine in Q3.

The capital figures tell a slightly different story. Broker funding jumped from $21.5 million in Q4 2025 to $155.4 million in Q1 2026, then remained close to that level for two more quarters.

That stability suggests the category has been attracting a growing number of financings without relying on constantly increasing round sizes.

Insurance distribution software has also recovered somewhat. Capital rose from $20.7 million in Q4 2025 to $60.4 million in Q3 2026, although deal counts have been less consistent.

Meanwhile, policy-administration software recorded no financings in Q3, after attracting three or four per quarter throughout the previous year.

One possible explanation is the appeal of software and AI tools that improve customer acquisition, broker productivity and insurance operations. American Growth Insurance's model illustrates how technology is being used alongside traditional insurance distribution rather than requiring companies to become full insurers themselves.

We cannot yet establish a single commercial catalyst behind the category's funding recovery. But brokers have produced the strongest sustained improvement in transaction counts.

Category	Q4 '25 deals	Q1 '26	Q2 '26	Q3 '26
Digital insurers	12	7	9	7
Brokers and marketplaces	2	6	6	9
Distribution software	2	6	3	4
Policy administration	4	4	3	0
Claims technology	3	0	3	1
Underwriting and pricing	2	3	0	3
Reinsurance and risk	2	0	0	1

Is insurance claims technology suddenly attracting more funding?

Claims technology experienced a huge funding spike in Q2 2026, but almost all the money came from a single company: Reserv.

The category attracted $129.3 million across three financings. Reserv accounted for $125 million, approximately 96.7% of the total.

Without that transaction, the other two claims financings represented just $4.3 million.

The wider quarterly pattern offers little evidence of sustained growth. Claims technology recorded five deals in Q2 2025, three in Q3, three in Q4, none in Q1 2026, three in Q2 and one in Q3.

Underwriting and pricing software showed similar volatility. Funding reached $125 million in Q1 2026, disappeared from the selected financing records in Q2 and returned with three deals totaling $29.1 million in Q3.

Claims processing and underwriting remain important areas for insurance automation. But the quarterly financing numbers have yet to demonstrate that investors are consistently backing more companies in either category.

For now, a few standout businesses are attracting large checks while category-wide activity remains uneven.

Are younger InsurTech startups finally attracting investors again?

Younger InsurTech companies became much more visible in Q3 2026, alongside a recovery in first financings.

The median age of a funded company fell from five years in Q1 2026 to 3.5 years in Q2 and two years in Q3.

Among early-stage businesses, median reported age reached approximately half a year in Q3 under our year-based age calculation. First-financing recipients were particularly young, with a median calculated age of zero years.

That fits the increase in first-financing activity and suggests that more newly established businesses were finding investors.

However, we identified founding dates for only 18 of Q3's 25 financings, compared with 22 of 24 in Q2. Missing founding information could affect the apparent shift in company age.

We therefore see the improvement in first-financing counts as stronger evidence than the age figures alone.

The key question for the next few quarters is whether newly established InsurTech businesses continue appearing in the funding records, particularly in brokers, distribution software and other categories where smaller companies have recently become more active.

Is Europe losing ground to North America in InsurTech funding?

North America has become increasingly dominant in our InsurTech financing sample, while Europe's share of deals has generally declined.

North American companies recorded 20 financings in Q2 2025 and 19 in Q3 2026. Europe's count fell from 11 to three over the same period.

As a result, North America accounted for 76% of all financings in the latest quarter and approximately 82% of recorded capital.

Europe's funding totals tell a more complicated story. Investment reached $585.8 million in Q2 2026, largely supported by Alan, before dropping to $26.6 million in Q3.

A substantial European capital total therefore coexisted with relatively few financings. The region recorded six deals in Q2 2026, compared with 11 in Q2 2025.

The geographic imbalance also reflects large American financings such as Axonic Insurance and Corgi, which helped increase North America's share of capital during the observed period.

We would be careful about interpreting this as investors deliberately abandoning European companies. The records do not show where rejected investment opportunities were located.

Still, Europe's deal activity has weakened considerably within our selected market, while North America continues producing the largest number of funded businesses.

Are the same venture capital firms financing InsurTech every quarter?

InsurTech funding does not appear to be increasingly controlled by a small group of lead investors, although some firms have returned repeatedly.

Sequoia Capital appeared as a disclosed lead in two Q1 2026 financings, while TCV appeared twice in Q2. TCV's involvement in Corgi is particularly notable because it led the company's $160 million Series B and its $106 million Series B1 only weeks apart.

Brewer Lane Ventures also appeared across the broader observation period.

However, most identifiable investors led only one financing within each quarter. In Q4 2025, for example, 26 transactions disclosed their leads, producing 37 distinct reported lead investors, including co-leads.

The main problem with the latest figures is incomplete disclosure. In Q3 2026, identifiable leads were available for just 68% of financings, compared with 96.3% in Q4 2025.

That gap makes it difficult to tell whether new lead investors are entering the sector or whether fewer investor names are simply being disclosed.

The market shows much stronger evidence of capital concentration around particular companies than concentration around a fixed group of lead investors.

Are corporate investors starting to pull back from InsurTech?

Corporate and strategic investors have appeared in fewer InsurTech financings since Q1 2026. Their disclosed participation declined from 10 deals in Q1 to five in Q2 and four in Q3.

Their share of transactions fell from 38.5% to 20.8% and then 16%.

That decline occurred during a period when large financings were still happening. In Q2, for instance, total capital doubled while the number of strategic-backed deals was cut in half.

The mix of companies receiving strategic investment also shifted. Six of Q1's 10 strategic-backed financings were later-stage. By Q2, four of five were early-stage, followed by three of four in Q3.

Median round sizes for strategic-backed deals fell from $36 million in Q1 to $5 million in Q2, before recovering slightly to $8.8 million in Q3.

Gallagher Re's broader Q2 2026 research offers some context. It counted 27 technology investments backed by insurers and reinsurers, down from 32 in Q1, with just over half involving early-stage businesses.

The recent decline in our records is therefore consistent with a wider reduction in the number of insurer-backed technology investments.

We cannot determine how much of the change reflects reduced investor activity versus incomplete disclosure, particularly when investors remain unnamed. Still, corporate participation has not kept pace with the largest funding rounds.

Is AI now behind most big InsurTech investments?

AI is becoming central to where InsurTech investors put their money, although the extent of its influence depends heavily on how companies are classified.

Gallagher Re reported that AI-focused businesses captured approximately 95% of global InsurTech funding in Q1 2026 and 99.1% in Q2.

Those figures are striking, especially because Q2's AI-focused investments represented $2.42 billion in Gallagher Re's wider global financing universe.

Our own analysis does not apply a consistent AI-specific classification to every company, so we cannot reproduce those percentages within the selected 164 deals.

Nevertheless, several notable financings help explain the industry trend.

Alan is investing in AI-powered healthcare and insurance experiences. Corgi describes its business as an AI-native insurance platform, with underwriting technology designed around emerging commercial risks. American Growth Insurance is applying AI to insurance brokerage operations, including agency productivity and customer servicing.

These businesses are approaching insurance from different directions, but they share a focus on using software and automation to improve products or operating efficiency.

That interest also extends to claims technology, underwriting software and distribution platforms, although those categories have shown very different quarterly funding patterns.

AI clearly features in several of the sector's largest investment stories. What we cannot yet isolate is how much capital was raised specifically because of AI capabilities rather than revenue growth, distribution advantages, regulatory licenses or other company-specific strengths.

What is actually changing in the InsurTech funding market right now?

InsurTech funding became less dependent on giant transactions in the latest quarter, while smaller and younger companies started regaining a place in the financing mix.

The shift appeared most clearly between Q2 and Q3 2026. The largest five rounds accounted for 76.2% of capital in Q2, compared with 53.7% in Q3.

The median financing declined, but more companies completed first financings, and early-stage capital increased.

At the category level, digital insurers remained the largest capital recipients over the full period, while brokers and marketplaces showed more consistent growth in deal counts.

Investor behavior was mixed. Corporate participation declined, but we found little convincing evidence that lead-investor activity had become systematically more concentrated.

The next few quarters will determine whether the latest improvements become a lasting change.

A stronger funding market would combine rising deal counts, resilient mid-sized rounds, more first financings and sustained activity across several categories. So far, we've seen that combination only partially.

What is the funding trend actually telling us?

InsurTech's largest funding rounds tell a very different story from the rest of the market. Capital has repeatedly surged because a handful of companies raised exceptionally large amounts, while the total number of deals stayed relatively low.

Later-stage companies have consistently captured most of the money. This advantage was especially pronounced in late 2025 and the first half of 2026, when growth financings dominated the funding totals.

The recovery in first financings is one of the most encouraging recent developments. More new companies raised money in Q3 2026, although we need further quarters to establish whether that improvement will last.

Digital brokers and marketplaces currently show the clearest growth in funding activity. Their deal counts have improved across several quarters, making their momentum more convincing than the occasional capital spikes in claims or underwriting technology.

North America remains the most active region, while Europe's representation among funded companies has weakened. Meanwhile, strategic-investor participation has declined without a similarly clear change in lead-investor concentration.

The most misleading headline is Q2 2026's record $1.37 billion. Once we examine the underlying transactions, that quarter looks considerably weaker for ordinary startup fundraising than its capital total suggests.

The biggest question now is whether the recent return of smaller rounds and first financings can bring more companies into the funding market. That would be a more meaningful improvement than another billion-dollar quarter dominated by a few established winners.