Insurtech revolutionizes $7 trillion global market in a flash

The global insurance market, valued at over $7 trillion and $100 billion in Australia alone, is undergoing significant transformation thanks to insurtech. Insurtech Australia, a non-profit industry association dedicated to insurance industry innovation, recently united startups, business leaders, and investors to dispel misconceptions about this emerging field and clearly define what constitutes an insurtech startup.

• Insurtech Australia’s CEO, Simone Dossetor, underscored that insurtech can be any venture that leverages technology to deliver a service connected to insurance.
• Australian insurtechs are recognized for developing sophisticated technology that is easily scalable across developed and emerging economies.
• Insurtech Australia holds that insurtech provides an excellent sector for angel investors and VCs.

Two standout examples of insurtech startups include FloodMapp and Trendspek. FloodMapp provides rapid, real-time, and hyper-local flood mapping, valuable to insurance underwriters. Its 2022 seed round raised a record $8.4 million. Trendspek, in contrast, focuses on the real estate and insurance industries, providing better intelligence and proof of existing condition and maintenance activities concerning high-value real assets with the help of 3D digital models.

In a panel hosted by Insurtech Australia, director Tetiana George expressed that the organization has debunked investment myths about early-stage insurance ventures. She pointed out the value of Australia’s insurance market considering its population and highlighted the well-defined market structure with over 200 registered underwriters and 11,000 brokers. Most insurtechs qualify for ESVCLP investment structures, and industry sales cycles align with standard B2B businesses, hence it is a promising sector for angels and VCs.

Insurtech Australia plans to host its annual marquee InsurtechLIVE 24 event in Sydney in February 2024. The event will spotlight the insurtech investment environment and the role of technology in enabling insurance innovation.