Application insights alerts to microsoft teams

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I am trying to create an azure function alert from application insights to be send to microsoft teams webhook. I have setup a webhook in microsoft teams, however I can't get it linked with application insights in the azure portal.
The application insights alert rules allow email/sms/voice but not custom setup for webhook

Am I missing something?

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What you're looking at is the Configure notifications blade, that lets you define a list of notifications to send when an alert is triggered.

What you need to do instead is move ahead to the Configure actions blade as shown in the screenshot below, configure the Action Type as Webhook, and enter your Function App URL.

Configure Actions

Be sure to enable the common alert schema, which provides the advantage of having a single extensible and unified alert payload across all the alert services in Azure Monitor.

Here are some additional resources to check out: