AI-focused companies received every transaction worth more than $5m during the quarter.
Artificial intelligence (AI)-focused companies attracted 99.1% of global insurance technology (insurtech) funding in the second quarter of 2026, with total funding reaching $2.44b, according to Gallagher Re.
The funding total was the highest since the second quarter of 2022, driven largely by a number of mega-rounds.
AI-focused companies accounted for $2.42b of the funding and received all deals worth more than $5m.
The latest Gallagher Re InsurTech report is the final report in a three-part series examining the impact of artificial intelligence on insurance.
The 2026 report shifts its focus to the longer-term risks and opportunities created by the infrastructure supporting AI.
Data centres are a key focus, as growing AI workloads increase demand for facilities housing servers, storage and networking equipment.
Gallagher Re said the speed at which data centres are being built, along with the cost and complexity of AI-related hardware, is putting pressure on underwriters.
At the same time, the emerging risks could create opportunities for insurers and reinsurers looking to enter the market.
The report also found a sharp decline in early-stage funding. Investment in early-stage companies fell 51.8% quarter-on-quarter from $548m to $264.19m, although the number of early-stage deals remained at 54.
Insurance and reinsurance companies made 27 technology investments during the quarter, down from 32 in the first quarter. Of these investments, 51.9% were in early-stage companies.
Gallagher Re said the funding figures point to rising investment levels across the InsurTech sector, but also a potential narrowing of the innovation pipeline, particularly amongst incumbent insurers.