In the third report of 2026, we explore how AI is redefining established classes of insurance business — specifically credit risk protection, ratings, financial protection hedges and trade finance.
Central to this theme is AI's ability to bridge data gaps and help these traditionally reactive classes of business become more proactive.
The report examines how AI is supporting price estimation, improving understanding of pricing volatility and enabling more informed market predictions. It also explores the role of AI in these established classes and the risks and opportunities for the (re)insurance industry.
In addition, the report provides insights into InsurTech fundraising activity for Q3 2026, alongside a deeper analysis of the first half of the year and emerging investment trends.
This quarter's activity highlights the impact of fewer mega-round deals, the changing role of insurance-linked investors and a potentially narrowing innovation pipeline. It also underlines the need for InsurTechs to prove their business use case and differentiated value as insurers and brokers develop their own AI capabilities.
Key findings for Q3
- Quarterly InsurTech funding fell 44.6% QoQ to USD1.36B in Q3'26. The decrease was primarily due to a decline in mega-round funding from USD1.67B in Q2'26 to USD0.66B in Q3'26.
- Early-stage InsurTech funding increased 20.1% QoQ to USD317.29M in Q3'26. Early-stage deal count also ticked up slightly from 54 in Q2'26 to 56 in Q3'26.
- 83.2% of Q3'26 InsurTech funding went to AI-focused companies, comprising USD1.13B of funding across 72 deals.
- (Re)insurance companies backed 25 tech investments in Q3'26, with the number of funding rounds more than halving year-on-year from 51 in Q3'25.
Read the full report for a comprehensive overview of the quarter's activity.