Over the past few years, our focus on AI has aimed to provide practical insights into its applications and impact across the (re)insurance industry. Now, we look to consider where it can take us in the future.
In this Q1 edition, we focus on the emerging picture of AI liability insurance and how it fits in with an evolving cyber insurance market, as both fields increasingly coalesce around the risks emanating from digital delegation and tech infrastructure.
Taken together, digital and cyber risks have been popular areas for InsurTech innovators for years — since 2012, such companies have raised USD5.77 billion overall, across 263 deals. Viewed in that context, AI liability insurance is merely the new cutting-edge of a digital innovation theme that the market has been pursuing for quite some time.
In addition, the report provides insights into the performance of the InsurTech market for Q1'26. This quarter's activity demonstrates that InsurTech investment remains resilient, signaling renewed confidence in the sector and a clear shift toward AI-driven innovation.
Key findings for Q1
- Global InsurTech funding reached USD1.63B in Q1 2026, maintaining momentum from late 2025.
- Q4'25 and Q1'26 rank as the highest for global InsurTech funding since late 2022 — providing further evidence of a return in capital to this space.
- A staggering 95% of Q1 funding flowed to AI-focused companies, while InsurTechs relevant to the Q1 theme of AI liability and cyber insurance raised over USD440 million in the quarter.
- Average deal sizes climbed to their highest levels in years, with a 23.3% increase quarter-on-quarter, driven by larger, more concentrated investments.
- Early-stage funding surged, highlighting continued appetite for innovation — this includes Q'26 seeing only the sixth early-stage InsurTech on record to raise a USD100m+ mega-round.
These findings reinforces a critical trend: AI is now central to InsurTech. Read the full report for a comprehensive overview of the quarter's activity.