AI Monopolises Insurtech Funding as Q2 Totals Hit $2.44bn, Highest in Four Years
AI Monopolises Insurtech Funding as Q2 Totals Hit $2.44bn, Highest in Four Years #
Global insurtech investment reached $2.44 billion in the second quarter of 2026, the sector’s strongest quarterly result since Q2 2022, according to Gallagher Re’s latest Global InsurTech Report, released on 6 August. The figure extends a two-quarter rebound driven almost entirely by artificial intelligence.
AI-focused companies captured 99.1% of all insurtech funding during the quarter, raising $2.42 billion across 95 transactions. Every funding round above $5 million in the period went to a company with an AI focus.
The AI share of quarterly insurtech funding rose from 95.2% in Q1 2026 to 99.1% in Q2. Mega-rounds, transactions exceeding $100 million, accounted for 68.4% of total capital deployed.
Overall deal activity also improved. The quarterly transaction count reached 107, its highest since Q1 2024. Early-stage funding fell 51.8% quarter-on-quarter, however, from $548 million to $264.19 million.
Gallagher Re’s report, the second in a 2026 trilogy of AI-focused editions, examines the infrastructure being built to support AI, with a focus on data centres. The reinsurance broker noted that global data centre investment is projected to run into the trillions of dollars over coming years. The report’s authors warned that these concentrations of risk could test the capacity and modelling capabilities of the (re)insurance industry, and that the pace of construction is outstripping the sector’s ability to underwrite the associated accumulation risk.
The $2.44 billion Q2 total remains well below the $15.8 billion recorded across 2021 at the height of the post-pandemic venture boom. Investment is now concentrated in a small number of large AI-focused deals rather than spread across a wider range of insurtech ventures.
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