AI-focused companies dominated the quarter, accounting for 95.2% of total funding — a record share. These firms raised USD 1.55 billion across 68 deals, with all of the ten largest funding rounds going to AI-led businesses.
Global InsurTech funding remained resilient in Q1 2026, reaching USD 1.63 billion, according to Gallagher Re. While slightly below Q4 2025’s USD 1.67 billion, the two quarters mark the strongest activity since Q3 2022, signalling a continued recovery in investor sentiment.
AI-focused companies dominated the quarter, accounting for 95.2% of total funding — a record share. These firms raised USD 1.55 billion across 68 deals, with all of the ten largest funding rounds going to AI-led businesses.
Early-stage investment rose 36.1% quarter-on-quarter to USD 548.5 million, its highest level since Q3 2022, while average deal sizes surged year-on-year. Life and Health InsurTech funding nearly doubled to USD 718.99 million, whereas Property and Casualty funding fell 31% to USD 907.14 million.
Andrew Johnston of Gallagher Re said the back-to-back strong quarters indicate a return of capital to the sector, driven largely by AI innovation.
The report also highlights growing momentum in AI liability and cyber-linked InsurTech, which attracted USD 444.84 million during the quarter. As AI adoption accelerates, insurers are expected to expand coverage solutions addressing risks such as algorithmic bias, data issues and automated decision-making.