Key US InsurTech investment stats in Q2 2026:
- US InsurTech funding surged 2.4x YoY in Q2
- Californian companies secured five of the top 10 deals in the quarter as the state emerged as the main US InsurTech hub
- Reserv, an AI-native third-party administrator and claims intelligence provider serving the property and casualty insurance market, raised $125m in a Series C round, making it one of the top InsurTech deals of the second quarter
US InsurTech funding surged 2.4x YoY in Q2
US InsurTech investment in Q2 2026 reached $1.1bn across 32 deals, representing a 2.4x surge in funding compared to the $474.9m raised across 34 deals in Q2 2025.
Deal volume held broadly flat, dipping by just two transactions year-on-year, which means the dramatic rise in total capital raised was driven almost entirely by a surge in average deal size.
The average deal value climbed to $35.7m in Q2 2026, up from $14m in Q2 2025, more than doubling in the space of a year and pointing to a funding environment in which investors are placing larger, more concentrated bets on a select group of businesses.
The scale of that shift suggests a meaningful step-change in investor appetite for US InsurTech at the upper end of the market, with capital being deployed with considerably greater ambition than in the comparable period a year prior.
Californian companies secured five of the top 10 deals in the quarter as the state emerged as the main US InsurTech hub
The state-level breakdown of the top 10 deals in Q2 2026 reveals a significant reshaping of the geographic distribution of the sector’s largest transactions compared to Q2 2025.
California was the standout mover, rising from just one top deal in Q2 2025 to five in Q2 2026, establishing itself as the dominant state for large-scale US InsurTech investment during the period.
New York remained a fixture across both periods, though its share of top deals fell from four to three, reflecting a relative but not absolute easing of its position.
Illinois and New Jersey both made new appearances in Q2 2026, neither of which featured in the Q2 2025 top 10.
Texas, which contributed two top deals in Q2 2025, did not appear in Q2 2026, and Minnesota, Wisconsin and Massachusetts, each of which secured one top deal in the earlier period, were similarly absent, pointing to a consolidation of the largest transactions around a smaller and more concentrated set of states than was the case a year prior.
Reserv, an AI-native third-party administrator and claims intelligence provider serving the property and casualty insurance market, raised $125m in a Series C round, making it one of the top InsurTech deals of the second quarter
The round was led by KKR, with participation from existing investors Bain Capital Ventures and Flourish Ventures, as well as select strategic partners and clients.
Founded in 2022, Reserv serves nearly 200 insurers, corporate captives, MGAs and brokers. The company has reached $100m in annual recurring revenue and has more than doubled its claims processing capacity every year since inception.
Its Reserv Glance platform uses fully explainable AI to analyse and act on claims within a centralised database, enabling clients to phase out legacy systems within weeks while choosing the level of automation applied across simple and complex cases.
The company currently handles 500,000 complex claims annually and plans to scale that capacity to 30 million over the next four years, with proceeds from the round supporting continued platform development and operational expansion across the US property and casualty market.
Keep up with all the latest InsurTech news here
Copyright © 2026 InsurTech Analyst
