Key US InsurTech investment stats in Q1 – Q3 2 2026:
- US InsurTech deal activity increased 5% YoY in Q1 – Q3
- California retained its position as the main US InsurTech hub as companies based in the state secured 36% of all deals
- 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 biggest InsurTech deals of the period
US InsurTech deal activity increased 5% YoY in Q1 – Q3
US InsurTech companies raised $2.2bn across 115 deals in the first three quarters of 2026, up 54% in funding and 5% in deal volume from the $1.4bn and 110 transactions recorded in the equivalent period of 2025.
The growth in funding considerably outpaced the rise in deal activity, pointing to a meaningful increase in average deal sizes over the period.
Average deal size climbed to $19.2m in the first nine months of 2026, compared with $13m in the same period a year earlier, suggesting investors have been committing larger sums to individual transactions even as the overall number of deals moved only modestly higher.
California retained its position as the main US InsurTech hub as companies based in the state secured 36% of all deals
California retained its position as the most active US InsurTech market in the first nine months of 2026, with companies recording 41 deals and a 36% share of total activity.
This compares with 34 deals and a 31% share in the same period of 2025, a 21% rise in volume that also strengthened its proportional standing.
New York held second place in both periods but retreated in volume, falling from 31 deals and a 28% share in the first nine months of 2025 to 24 deals and a 21% share in the equivalent period of 2026, a 23% decline that also saw its share of overall activity narrow considerably.
Texas entered the top three in the first nine months of 2026 with 10 deals and a 9% share, displacing Florida, which had held third place in the same period of 2025 with eight deals and a 7% share but did not feature in the equivalent ranking in the more recent period.
Texas’s arrival and Florida’s exit points to a shift in the geographic spread of US InsurTech activity, while the widening gap between California and New York is the more consequential development, with the west coast market consolidating its lead over its east coast rival.
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 biggest InsurTech deals of the period
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.
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