Key Highlights:

• InsurTech financing volume in Q1 2026 totaled more than $1.6 billion, representing a 35% year-over-year increase and a 17% sequential increase over Q4 2025, marking the strongest Q1 since 2022 and signaling renewed investor appetite after a multi-year pullback.

• While volume climbed, financing deal count dropped, only by 13% sequentially from the end of 2025, but by 26% from Q1 of last year. This matches the broader FinTech market which experiences falling deal count while volume levels held steady.

• InsurTech Series A rounds reached the highest ever average value at nearly $26 million in Q1 2026, compared with $13.5 million in 2025, boosted by several large deals: AI-powered claims platform Strala’s $51 million round, commercial insurance brokerage Harper’s $47 million combined seed and Series A round, and provider of AI solutions for insurance operations Notch’s $30 million round.

• With several M&A deals with undisclosed sale prices in Q1 2026, total M&A dollar volume was quite low. On an annualized basis, deal count is tracking below the record high in 2025, though is in line with other recent years. Notable deals in the quarter included TowerBrook’s acquisition of majority interest in Italy-based insurance claims management services provider MSA Mizar at an enterprise value of more than ~$400 million, Admiral Group’s $109 million strategic acquisition of commercial fleet insurance provider Flock, and Warburg Pincus’ majority investment in lease guarantee provider The Guarantors.