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Artificial intelligence dominated the insurtech landscape as 95.2% of first-quarter funding deals involved the budding technology, raising $1.55 billion across 68 deals.
This was the lion’s share of the total $1.63 billion across 81 deals in first-quarter insurtech funding, almost flat from the $1.63 billion from fourth-quarter 2025, according to a report from Gallagher Re on Thursday.
Funding was up, however, on a year-over-year basis, up 24.2% from first-quarter 2025.
The U.S. saw 52% of all first-quarter insurtech funding, followed by the United Kingdom with 7% and France at 5%.
All of the quarter’s top 10 deals by funding amount went to AI-centered companies. AI-labeled insurtech companies had an overall average deal size of $25.8 million higher than the overall deal size average, the report said.
AI-centered insurtech companies saw an average deal size of $22.1 million — slightly above the overall fourth-quarter 2025 average – when they raised $1.31 billion across 66 deals.
Fourth-quarter 2025 and first-quarter 2026 were the highest for global insurtech funding since the third-quarter of 2022, according to Andrew Johnston, global head of insurtech at Gallagher Re, “further evidence that there is a return of capital into this space,” he said in a statement with the report.
The dominance of funding for AI highlights “the industry’s commitment to this transformative technology,” he said.
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