Investment in UK insurtechs halves in H1 2026

UK insurtech investment fell by around 50% during the first half of 2026, according to a new analysis from KPMG provided exclusively to Insurance Times.

The data, which is from PitchBook and been analysed by KPMG, showed UK insurtech firms secured £58m across 18 deals during the first six months of 2026, compared with £116m raised through 14 deals in the same period last year.

As a result, the UK slipped from first to third place in Europe for insurtech investment, behind France, which attracted £514m, and Switzerland, where firms raised £143m.

Melissa Collett, chief executive at Insurtech UK, said that while the numbers were ”disappointing”, the increase in deal numbers ”gives us grounds for confidence”.

She said: “These figures are clearly disappointing and they underline the urgent need to unlock more growth-stage capital for UK insurtechs. But the headline does not tell the whole story. The number of UK deals actually increased from 14 to 18, suggesting that investor appetite for innovative businesses remains resilient, while last year’s total was heavily influenced by a single £67m funding round.

“We should therefore be cautious about declaring that the UK has permanently lost its European insurtech crown on the basis of one six-month period. The UK retains a uniquely strong combination of insurance expertise, technology talent, world-leading institutions and a highly developed startup ecosystem.

“The challenge is converting that strength into larger follow-on rounds so that promising businesses can scale here rather than looking overseas for capital. Government, regulators, investors and the insurance industry must work together to improve access to growth funding, maintain internationally competitive tax incentives and make the UK the easiest place in Europe to build and scale an insurtech business.”

Investment activity 

KPMG said investment activity became more concentrated around a small number of established businesses, with fewer growth-stage funding rounds and less diversification than in previous periods.

The three largest UK insurtech transactions in the first half of 2026 were One Dome (£25m), ManageMy (£15m) and Pantheon Specialty (£5m).

Zvi Ebert, senior manager at KPMG UK’s insurtech practice, said: “It’s been a challenging start for the UK insurtech market as investors focus capital on mature businesses that can demonstrate clear gains in the current environment.

”Although investment levels have fallen in the UK and globally, insurtechs with solutions focused on addressing specific market needs and a growing market share are still receiving funding. The same focus on proven growth is driving increased M&A activity across the insurance sector, with softer market conditions making organic growth more difficult.

“The key test for the rest of the year is whether investment broadens beyond a small group of relatively established players. A stronger recovery would not only be reflected in headline investment value, but in a wider spread of transactions supporting new entrants, AI-first insurers and across the whole insurance value chain.”