Global InsurTech funding falls to lowest level of 2026
Global InsurTech investment cooled sharply in March, with 10 deals raising roughly $237m, making it the slowest month for funding so far in 2026.
The total represents a steep fall from February, when more than $1bn was raised, and a clear decline from January’s $420m. Compared with last month, funding dropped by around 78%, while deal activity also slowed.
While investment levels softened, funding continued to concentrate around companies developing artificial intelligence tools and digital infrastructure designed to modernise how insurance products are underwritten, distributed and managed.
The largest round of the month came from Paris-based health insurer Alan, which raised €100m in fresh funding, pushing its valuation to €5bn and reinforcing its position as one of Europe’s most valuable insurance startups.
However, the nine-figure round stood out as the only deal of that scale recorded during March, running counter to the resurgence of larger transactions seen in recent quarters.
Instead, March’s funding activity was driven largely by smaller rounds focused on infrastructure, automation and embedded insurance platforms. These platforms accounted for six of the 10 deals recorded during the month.
Investment also continued to flow into companies developing technology designed to modernise insurance distribution, underwriting and policy management. Platforms such as Qover and Gangkhar secured funding to expand AI automation, embedded insurance infrastructure and orchestration technology aimed at supporting insurers, brokers and digital platforms.
Several early-stage startups operating in the embedded insurance ecosystem also attracted capital during the month. Companies including Loxa and Kayna raised seed funding to help retailers and vertical software platforms integrate insurance products directly into their customer journeys, reflecting continued investor interest in embedded protection models.
Life and health insurance platforms were the next most active segment, accounting for three deals during March. Among the most notable rounds, Brazil-based life insurer Azos secured $25m to expand its digital-first insurance offering, while Indian employee health platform Plum raised $20.6m to scale its corporate health and benefits ecosystem. Meanwhile, French digital health insurer Alan secured the largest round of the month, raising €100m and pushing its valuation to €5bn as it continues to expand internationally.
Commercial insurance platforms also featured among the month’s deals. US-based insurer Shepherd raised $42m to expand its artificial intelligence underwriting platform designed for large infrastructure and construction projects, supporting the rapid growth of AI-related infrastructure.
The aforementioned Shepherd deal was one of a hat-trick of tranches secured by US firms, reinforcing its position as the leading global hub for InsurTech investment.
However, funding activity remained globally distributed across a number of emerging and established InsurTech markets.
Deals were also recorded in France, Brazil, India, Belgium, the United Kingdom, the Netherlands and Singapore, highlighting the increasingly international nature of insurance technology innovation even as overall funding levels cooled in March.
Here’s a list of March’s InsurTech funding rounds:
Alan hits €5bn valuation after €100m funding round
Parisian InsurTech Alan has reached a valuation of €5bn following a €100m funding round, strengthening its position as one of Europe’s most valuable insurance startups.
The round was led by existing investor Index Ventures and included new participants Greenoaks, Kaaf, SH, and strategic partner Belfius, as well as angel investors Shopify founder Tobi Lütke and French footballer Antoine Griezmann, according to InsurTech Insights.
Founded in 2016, Alan now serves more than one million customers, including employees, freelancers, and retirees. Its digital platform allows users to manage reimbursements, consult doctors, and track health and wellness activities directly through the mobile app.
Looking ahead, Alan intends to prioritise international expansion and further product development, targeting $1.16 billion in ARR by 2026, even if this delays full profitability. Investor support appears strong as the company continues to scale its digital health and insurance platform globally.
Shepherd raises $42m to scale AI underwriting platform
Shepherd, an AI-native commercial insurance platform, has raised $42m in a Series B round led by Intact Private Capital, bringing total funding to $67m.
The company provides commercial insurance for large construction and infrastructure projects, including data centres, semiconductor facilities and energy assets supporting the expansion of artificial intelligence infrastructure.
Shepherd said revenue has grown more than sevenfold over the past 24 months. The platform now insures more than $400bn in project value across 1,500 policies for over 600 customers, including contractors, technology companies and energy developers building physical infrastructure for AI systems.
The funding round included participation from Spark Capital and Costanoa Ventures, alongside additional investors. Intact Private Capital, the investment arm of global insurer Intact, will also provide expanded underwriting capacity through the partnership.
Notch closes $30m round to power end-to-end AI agents
Notch, an AI operating system for regulated industries, has closed a $30m Series A funding round, taking its total capital raised to $45m.
The raise was led by Headline and supported by Lightspeed Venture Partners, Jibe Ventures, Illuminate Financial, and Phoenix Insurance.
The multi-firm backing reflects mounting demand among regulated businesses for AI automation that can deliver operational results while maintaining accuracy and compliance oversight.
Proceeds from the round will fuel Notch’s US expansion and drive further development of its platform, which is designed to serve global insurers, large brokers, and financial institutions.
The company reported a 12x increase in annual recurring revenue over the past 12 months, with uptake spanning leading insurers, financial services firms, and other organisations with complex workflow requirements.
Notch’s platform deploys AI agents across both conversational and back-office operations. For customer-facing and partner interactions, the system handles policy servicing requests, document and data collection, structured intake for claims and underwriting submissions, and inquiries that require execution at the system level.
It also serves as a co-pilot for internal teams, allowing adjusters, underwriters, and service representatives to query lengthy claim files, policy documents, and submission materials using natural language, receiving traceable answers grounded in source data alongside rapid summarisation of complex files.
Brazilian InsurTech Azos raises $25m Series C
Azos, a Brazilian InsurTech focused on individual life insurance, has raised $25m in a Series C round to expand in a market still dominated by Bradesco and Prudential.
The capital will be used to scale operations, grow its product offering, and reach underserved customers in Brazil’s concentrated life insurance market, according to Brazil Journal.
The Series C was led by Kaszek and investor Kevin Efru, alongside participation from other strategic backers. Azos has built a digital-first platform designed to simplify the discovery, quoting, and purchase of individual life insurance, targeting customers historically limited by complex processes and few options.
The funding supports accelerated go-to-market efforts and product development, allowing Azos to leverage technology and data to deliver more accessible and affordable life insurance.
The company aims to challenge the incumbent-led structure in Brazil and increase penetration of individual life coverage through digital distribution and streamlined underwriting.
Founded with a vision to modernise life insurance in Brazil, Azos has previously raised capital to develop its platform and partnerships with carriers, brokers, and digital channels. With the new Series C funding, the company plans to strengthen its position as a leading challenger in the individual life insurance space.
Plum secures ₹193cr ($20.6m) to reach 10 million employees
Plum, an Indian employee health and corporate insurance platform, has raised a Series B round of ₹193 crore ($20.6m) to scale its claims experience to millions of employees across India.
The funding will be used to accelerate the company’s reach to 10 million people, deepening integrations, expanding security capabilities, and advancing its full health journey product — spanning prevention through primary to critical care.
Central to Plum’s growth story is its claims experience, which the company says is the best in the world, underpinned by an industry-leading net promoter score (NPS) of 79.
The company has built its claims proposition around four principles: speed, seamlessness, value, and ease. Plum describes itself as a comprehensive employee health company, offering corporate and personal insurance, primary care, mental wellness, telehealth, and flexible benefits.
Looking ahead, Plum says it intends to function as an HR co-pilot rather than a helpdesk — a system that manages operational complexity in the background and surfaces decisions only when genuinely required. The company is targeting enterprise-grade capability for companies of all sizes, with a lean HR team at a 500-person company able to operate with the same ease as a large, well-resourced enterprise.
Qover extends funding with $12m CIBC growth facility
Embedded insurance platform Qover has secured a $12m growth capital facility from CIBC Innovation Banking, bringing its total funding since launch to more than $100m.
The financing comes as the Brussels-based insurtech marks its 10th anniversary and continues expanding its embedded insurance infrastructure across Europe and international markets.
Founded in 2016 by Quentin Colmant and Jean-Charles Velge, Qover provides orchestration technology that enables companies to embed insurance directly into their digital products and services. The platform currently supports programmes for partners including Revolut, Mastercard, BMW, Monzo, bunq, Canyon and Trust Travel, a brand of TUI, across more than 32 countries.
Qover said its platform now protects around 15 million users and expects that number to reach 55 million by the end of 2026, driven by new partner programmes currently being implemented.
The company has also recorded threefold revenue growth over the past four years and generated more than $173m in gross written premiums through its embedded insurance programmes.
The new funding will support continued investment in Qover’s orchestration platform, artificial intelligence capabilities and operational infrastructure as the company scales its embedded insurance offering.
Gangkhar raises $4.25m seed round to scale embedded insurance
Gangkhar, an AI-native embedded protection infrastructure platform, has closed a $4.25m seed round to accelerate its global expansion and deepen its AI-driven capabilities.
The round was led by Anthemis, with participation from Accion Ventures, Sancor Ventures, Seedstars, EWA Capital, and Simma Capital.
Early-stage backer Rally Cap, which supported the company at the pre-seed stage, is also recognised as a key contributor to Gangkhar’s early development.
The capital will be used to accelerate product development, deepen AI-driven optimisation capabilities, and support continued international growth.
Gangkhar operates as an embedded insurance orchestration platform, enabling capacity providers and digital platforms to configure, deploy, and optimise embedded protection products across regions.
Its AI-enabled optimisation engine draws on real-time programme data to improve segmentation, pricing, and messaging, helping distributors improve conversion and retention over time.
Through its Sherpa+ infrastructure, the platform delivers modular, scalable solutions across onboarding, pricing, underwriting, and claims, supported by advanced analytics and global reinsurance capacity. Partners can integrate via a single API to scale embedded protection offerings across multiple markets.
UK InsurTech Loxa closes £2.7m seed funding round
UK InsurTech Loxa has raised £2.7m in seed funding across three tranches to support European expansion, grow its retail partner network, and broaden its embedded insurance platform.
The round was backed primarily by angel investors and family offices, including the Lazaroo-Hood Group. Introductions were facilitated by Angel Investment Network, FundMyPitch, and the Entrepreneur’s Collective, according to Business Cloud.
Capital from the round will be used to expand Loxa’s presence in Europe, increase its retail network to 150 live partners, and extend its platform to support every insurable product category.
Jamie Hamer, co-founder and CEO of Loxa, said: “We started Loxa because we believed embedded product protection should be as universal as the checkout itself, available to every retailer, for every customer, everywhere.
“We made a deliberate choice to build this round with angels and operators who shared our mission and backed our vision from the start, and that alignment builds better businesses.
“Closing this round means we can now deliver on that promise at scale, with the right people and resources to execute successfully.”
Delphyr raises €1.75m for healthcare AI platform
Healthcare AI startup Delphyr has raised €1.75m to expand its platform for medical professionals, with backing from the founders of Hugging Face and DEGIRO.
The Amsterdam-based company will use the funding to support product development and deployment across hospitals, primary care and mental health settings, according to Beinsure.
Founded in 2023, the Dutch firm develops AI agents designed to support clinicians by reducing the time spent on documentation and information retrieval.
The platform aggregates patient data from clinical notes, laboratory results and correspondence into a single interface, allowing physicians to search records and access clinical information more quickly.
Delphyr said the new funding will support further development of AI agents aimed at returning time to practitioners while maintaining privacy, security and clinical standards.
Kayna raises $1.7m seed for embedded insurance
Embedded insurance platform Kayna has raised €1.5m ($1.7m) in a seed funding round to support expansion in the UK and US markets.
The round was led by Delta Partners, with participation from existing investors MiddleGame Ventures and Aperture. New investors Leo Capital, Enterprise Ireland and Digital Irish also joined the funding round.
Kayna develops infrastructure that allows vertical SaaS (VSaaS) platforms to embed insurance directly into their software products used by small businesses.
The platform provides AI-powered policy analysis tools designed to identify coverage gaps while connecting software platforms to multiple insurers and brokers.
This allows businesses to access quotes and tailored insurance coverage through the operational software they already use.
Vertical SaaS platforms typically serve specific industries such as franchise networks, restaurants, construction companies and field service providers.
CIBC Innovation Banking, a specialist lender with over 25 years of experience in growth-stage technology companies, has provided growth capital financing to Gradient AI, a leading enterprise AI software provider for the insurance industry.
The financing is intended to support Gradient AI’s growth plans and continued platform development as the company looks to better serve clients and tackle evolving challenges across the insurance sector.
Gradient AI’s platform helps insurers improve loss ratios and profitability by predicting underwriting and claims risks with greater accuracy. The company’s intelligent automation capabilities also aim to reduce quote turnaround times and cut claim expenses.
Its software-as-a-service (SaaS) platform draws on a vast industry data lake comprising tens of millions of policies and claims, supplemented by economic, health, geographic, and demographic data. Customers include insurance carriers, MGAs, MGUs, TPAs, risk pools, PEOs, and large self-insured employers across all major lines of insurance.
Gradient AI is backed by a group of existing investors including Centana Growth Partners, MassMutual Ventures, Sandbox InsurTech Ventures, and Forte Ventures.
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