An increase in long-term funding is essential for research and development in Australia to match global competitors, the insurtech peak body says.

Only 20% of local insurtechs attract investment capital, according to an Insurtech Australia submission to a federal Department of Industry, Science and Resources discussion paper.

Australian R&D is inhibited by convoluted tax incentives and fragmented funding programs, misaligned incentives and “regulatory friction”, it adds.  

“Each of these factors contributes to Australia punching below its weight in innovation,” the submission says. “Simplifying R&D tax administration and addressing outdated exclusions ... are simple yet effective ways to support the broader R&D ecosystem.”

Australia has fewer early stage insurtechs than other markets, IA says, but “top-down co-ordination” and flexible funding models will enable “rapid translation of research to market”.  

“A strong R&D framework that is stable, co-ordinated and easy to navigate could be a game-changer for Australian start-ups,” CEO Simone Dossetor said.

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