Key US InsurTech investment stats in Q3 2026:
- US InsurTech funding dropped 49% QoQ in Q3 2026
- Average deal value fell to $18m as investors prioritised smaller deals
- American Growth Insurance, an AI-enabled insurance brokerage platform acquiring and modernising independent agencies across the US, launched with nearly $70m in committed equity, marking one of the top US InsurTech deals of the quarter
US InsurTech funding dropped 49% QoQ in Q3 2026
The US InsurTech market attracted $577.1m across 32 deals in Q3 2026.
That represents a 3% increase on the $559.5m recorded across 32 transactions in Q3 2025, a broadly flat outcome on a year-on-year basis with deal volumes unchanged.
Against Q2 2026, funding fell 49% from $1.1bn, again across an identical deal count of 32 transactions.
The consistency of deal volumes across all three periods is striking, with 32 transactions completed in each quarter represented in the data, a figure that is joint highest for the five-quarter period.
What has varied considerably is the funding attached to that activity.
Q2 2026 stands apart as an outlier, and Q3 2026 represents a return to the more measured funding levels seen a year earlier.
Average deal value fell to $18m as investors prioritised smaller deals
The US InsurTech sector’s average deal value in Q3 2026 stood at $18m per transaction.
That is broadly in line with the $17.5m average recorded in Q3 2025, a marginal 3% increase year-on-year and a sign of considerable stability in underlying deal sizing between the two periods.
Against Q2 2026, however, the contrast is marked.
That quarter produced an average of $35.7m per deal, 98% above the Q3 2026 figure, reflecting the concentration of larger transactions that inflated the Q2 2026 total.
The Q3 2026 average is consistent with the level seen a year earlier, suggesting that outside of the Q2 2026 spike, deal sizing in the US InsurTech market has remained relatively stable.
American Growth Insurance, an AI-enabled insurance brokerage platform acquiring and modernising independent agencies across the US, launched with nearly $70m in committed equity, marking one of the top US InsurTech deals of the quarter
The funding was backed by Rockbridge Growth Equity, supporting the company’s strategy of acquiring independent brokerages and embedding AI-native operations into their infrastructure.
AGI spent a year testing its model across 10 agencies before its public launch.
The approach increased average agency profitability by more than 50% through higher revenue generation and improved operational efficiency.
The company is targeting a fragmented distribution market where the 50 largest US brokers account for 96% of industry revenue, leaving smaller firms with limited scale.
Following its first acquisition, AGI plans to expand its brokerage network and exceed $10m in revenue by the end of 2026.
Unlike traditional acquirers, the company positions itself as an operator seeking genuine partnerships with independent agencies, giving partner firms a role in shaping its strategy and technology.
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