A survey of Insurtech Australia members shows many have increased revenue, raised capital from private investors and entered new markets. 

Revenue grew 30% among insurtechs generating $1-$10 million annually, and this year has brought a 10% rise in investment from private backers as self and family/friend-funding dropped by a quarter. There was also a large increase in UK-based customers.

IA says there are significant opportunities next year, including backing from high net worth investors and a growing international client base.

“It’s great to see that while members face challenges, they are growing, evolving and entering new markets,” IA CEO Simone Dossetor said.

“This resilience and adaptability are what is driving the industry forward. By bringing together a broad group of stakeholders all interested in insurtech, we can accelerate innovation and deliver better outcomes for customers.”

The survey finds securing customers and partnerships are the top two challenges for Australian insurtechs, followed by managing cash flow and accessing capital.

When asked about AI adoption, members say uncertainty over data security, regulation and market readiness is a headwind. Almost 10% consider themselves “advanced”, with AI integrated throughout their business. About half are using open-source tools and in-house custom solutions, employing machine learning and natural language processing models.

Ms Dossetor says IA is committed to helping members adapt to emerging technologies such as AI. 

“Our focus will be on fostering collaboration, knowledge-sharing and advocacy to drive positive change within the Australian insurance industry,” she said.