- Investment halved to £58m in H1 2026, but deals rose from 14 to 18 year-on-year
- The UK loses top spot in Europe, falling behind France and Switzerland
UK Insurtech investment hit £58m across 18 deals in the first half of 2026, down around 50% from £116m across 14 deals in H1 2025, according to KPMG analysis of PitchBook data. This reflects a global slowdown in insurtech investment, which fell by approximately £740m from £3.6bn in H1 2025 to £2.7bn in H1 2026.
The fall pushed the UK from first to third in Europe for insurtech investment, falling behind France (£514m) and Switzerland (£143m) for H1 2026.
The largest UK Insurtech deals in the period spanned property insurance, insurance software and speciality broking:
- One Dome at £25m
- ManageMy at £15m
- Pantheon Specialty at £5m
UK insurtech investment in H1 2026 was narrower and smaller in value compared to H1 2025, with fewer growth-stage rounds and less diversification. While H1 2025 levels were also significantly influenced by Marshmallow’s £67m funding round, which accounted for approximately 57% of UK investment during that period, that concentration trend has persisted year-on-year.
Zvi Ebert, 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.”
Melissa Collett, CEO of Insurtech UK, 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 £67 million 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 start-up 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.
“The increase in deal numbers gives us grounds for confidence, but it must now be matched by greater ambition and investment at the later stages of growth.”
