News
Global InsurTech funding hits $2.44 bn in Q2 2026
Global InsurTech funding rose to $2.44 bn in Q2 2026, its highest level since Q2 2022, as transaction volume increased to 107 dealsGlobal InsurTech funding reached $2.44 bn in the second quarter of 2026, its highest level since Q2 2022, driven by large financing rounds and investment in artificial intelligence-focused companies, according to Gallagher Re’s latest Global InsurTech Report.
- The quarterly total increased from approximately $1.63 bn in Q1 2026, while transaction volume rose from 81 to 107 deals, matching the highest quarterly count since Q1 2024.
- Global InsurTech funding rose to $2.44 bn in Q2 2026, its highest level since Q2 2022, as transaction volume increased to 107 deals.
- AI-focused companies secured $2.42 bn, representing 99.1% of total investment, while mega-rounds of $100 mn or more accounted for $1.67 bn.
- P&C InsurTech funding more than doubled to $1.84 bn, but early-stage investment declined 51.8% to $264.19 mn despite an increase in deal activity.
- AI-focused InsurTech companies attracted $2.42 bn across 95 transactions, accounting for 99.1% of total funding. According to Gallagher Re, every financing round exceeding $5 mn involved an AI-focused business.
Financial Results
Progressive (PGR) Q3 Earnings Show Strong Underwriting As Profit Growth Slips
Q3 2026 Earnings Summary
- Total Revenue (Q3 2026 vs Q3 2025): US$23,182m vs. US$22,502m (up about 3%)
- Net Income (Excl. Extra Items) (Q3 2026 vs Q3 2025): US$2,542m vs. US$2,615m (down about 3%)
- Basic EPS (Q3 2026 vs Q3 2025): US$4.38 vs. US$4.46 (down about 2%)
- Combined Ratio (Q3 2026 vs Q3 2025): 87.3% vs. 89.5% (Improved by about 2.2 percentage points, indicating stronger underwriting profitability)
TRV Q3 Earnings Call Highlights Underwriting Strength and 2027 Outlook — TradingView News
The Travelers Companies, Inc. TRV emphasized durable underwriting profitability, rising investment income and disciplined pricing during its third-quarter 2026 earnings call.
Management expressed confidence it can sustain strong returns despite moderating insurance pricing and competitive pressures. Chairman and CEO Alan Schnitzer emphasized the sustainability of underwriting earnings, supported by risk selection, pricing capabilities and technology investments. The consolidated underlying combined ratio was 84.1%, marking nine consecutive quarters below 86%.
Management expects approximately $875 million in after-tax fixed-income investment income during fourth-quarter 2026, bringing the full-year total to $3.3 billion.
For 2027, Travelers projects more than $3.6 billion, with quarterly income increasing from approximately $875 million in the first quarter to $965 million in the fourth quarter. Higher reinvestment yields underpin these expectations.
Climate/Resilience/Sustainability
Southern California wildfires spare most homes as fire-zone market stays fragile
Firefighters have gained the upper hand on a group of wind-driven wildfires across Southern California
Damage appears limited so far, but the fires are a reminder of the state’s continuing wildfire exposure as insurers and regulators work to stabilize the homeowners market.
The Norte Fire broke out on Friday morning near Portico Del Norte and Eminencia Del Norte in San Clemente, Orange County. Driven by Santa Ana winds, it grew to 570 acres by Friday evening. Six homes in San Juan Capistrano and San Clemente were damaged or destroyed.
By Saturday evening, the fire was holding at about 570 acres with 25% containment, and most evacuation orders had been lifted, according to the Orange County Fire Authority.
Telematics, Driving & Insurance
Arity to Acquire INRIX, Advancing a Connected Vision for the Future of Transportation
Arity, a subsidiary of The Allstate Corporation, announced today that it has entered into an agreement to acquire substantially all the assets of INRIX, a leading provider of transportation intelligence and mobility analytics.
Expected to close in 2026, subject to customary closing conditions, the acquisition builds on Arity's role in advancing Allstate's investment in data, analytics, and mobility intelligence, leveraging more than three trillion miles of driving data to better understand how people, vehicles, and transportation systems move.
"Transportation operates as one connected system, yet the intelligence used to understand it remains fragmented across industries and data sources," said Gary Hallgren, president of Arity. "By combining Arity's predictive insights on driving behavior and risk with INRIX's transportation intelligence and mobility analytics, we will be uniquely positioned to deliver more robust intelligence and insights into how people, vehicles, goods, and roads interact. Just as important, we will bring together two talented teams with complementary expertise and a shared opportunity to shape the future of transportation systems. This acquisition advances our vision to help organizations understand what is happening today, anticipate the forces shaping what comes next, and make decisions that drive economic and societal value."
Cyber Risk
Business Email Compromise Claims Jump 30% as A.I. Reshapes Cyber Risk
Business email compromise claims rose roughly 30% in 2025 compared with the second half of 2024, driven largely by automated phishing kits that use A.I., according to Coalition, which says the impact of A.I. varies sharply by claim type, reported Risk & Insurance.
The big picture: Coalition, a cyber insurer, says A.I. is following the same trajectory as past technologies that criminals needed years to exploit profitably. Business email compromise has already shifted, funds transfer fraud is poised to follow, and ransomware remains constrained by manual steps attackers still can't automate.
By the numbers:
- Phishing kit reach: EvilTokens compromised more than 12,000 inboxes across over 10,000 organizations worldwide.
- Kit pricing: The phishing platform costs $1,500 up front plus a $500 monthly subscription.
- Average losses: Business email compromise losses remain under $30,000, though NetDiligence has documented a $30 million claim.
- Funds transfer fraud: Frequency fell 18% in 2025, and Coalition expects a 20% to 50% rise over the next year.
AI in Insurance
Broad AI Exclusions in Insurance Policies Could Create Uncertainty, Marsh CEO Says
A broad-based AI exclusion in insurance policies could create “real confusion and uncertainty,” Marsh CEO John Doyle said, calling for a more nuanced approach to assessing risks as the technology becomes increasingly embedded in business operations.
Analysts and experts say the rapid development of AI is making it difficult to determine how traditional policy definitions apply to AI-related risks, particularly those involving rogue agents.
“We are not trying to poke insurers. We just are really trying to have a thoughtful discussion about how this might change exposures, very limited claim activity to date, and really better understand how these risks aggregate,” Doyle said on a post-earnings call on Thursday. FULL ARTICLE
Harbor Insurance: $10M Seed to Insure the Risks AI Agents Create
Harbor, which emerged from stealth on October 13, 2026, with a $10 million seed round led by Base10 Partners, Abstract Ventures, and 8VC, is attempting to bridge this gap.
The company proposes a four-step operational process: inventorying every AI agent, measuring risk against frameworks like the NIST AI RMF and the EU AI Act, implementing technical controls, and insuring the residual risk using its own capital. Harbor's coverage targets specific perils, including hallucinations, action errors, and IP infringement.
Claims
AI Can Preserve Claims Adjuster Expertise
FEWER ADJUSTERS, HARDER CLAIMS
Every year about 21,600 claims adjuster and examiner jobs become available in the United States due to attrition, according to the U.S. Bureau of Labor Statistics.
Meanwhile, colleges only graduate about 2,100 students a year in insurance and risk management, and that number is falling. That gap roughly translates to about 10 open claims roles for every graduate, assuming the unlikely reality that every graduate chooses claims.
BLS expects about 6% fewer of these claims jobs by 2035, partly due to the implementation of software and AI, but those tech-driven efficiencies do not solve the problem. There are still nowhere near enough people to fill the claims jobs that remain open.
Commentary/Opinion
Insurance has entered the fast-follower era
Insurance is entering a new phase. After years of experimentation with digital transformation, automation and now AI, the advantage is shifting from being first to being fast at putting proven technologies to work. This is the fast-follower era, where carriers and agencies can learn from early adopters, move quickly on technologies that have demonstrated value and focus their investments on execution rather than experimentation.
The timing matters. Longstanding carrier-agent pain points are easing just as customer expectations for speed and digital service are accelerating, giving the industry a valuable window to modernize.
New research points to a turning point in the insurance distribution sector. Friction between carriers and agents is declining across several key metrics, even as rising customer expectations create a new set of pressures. Improvements in quote turnaround times, appetite transparency, appointment responsiveness and coverage availability suggest that longstanding challenges in the carrier-agent relationship are beginning to ease.
InsurTech/M&A/Finance💰/Collaboration
Insurtech Hugo Insurance expands its US auto insurance distribution
Hugo Insurance, a US insurtech company specializing in flexible auto insurance payments, has expanded its distribution partnerships in 2026 while continuing to focus on drivers seeking affordable liability coverage without large initial payments.
The company, established in 2016, developed its business around a pay-at-your-pace model that allows customers to fund insurance coverage through smaller payments rather than conventional monthly installments.
Hugo Insurance partnered with Root to offer full-coverage insurance options to eligible customers across 16 states. Bristol West joined its carrier network in Texas and Florida in August. MORE