Insurtech White Paper Part II: Australian Insurtech Market Overview

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Insurtech White Paper Part II: Australian Insurtech Market Overview

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Insurtech White Paper Part II: Australian Insurtech Market Overview
  • Australia’s insurtech ecosystem has expanded rapidly; the engagement of local and international incumbents through funding and partnerships has solidified the trend towards collaboration over disruption.
  • Local insurtech revenues have also begun to rise, propelled primarily by growth in platform/ecosystem disruptors and the early traction of technical enablers; rising from ~$440 million in 2015 to ~$585 million by the end of 2019, which represents a CAGR of ~7.4%.
  • Venture Insights predicts the insurtech sector is entering a growth phase; revenues are expected to grow at 13.9% p.a. between 2019 and 2024, to a size of $1.12 billion.
  • Recent regulatory activity, such as the financial services Royal Commission, could prove to be a catalyst for structural deterioration of insurance industry premiums, affecting potential revenues of both incumbents and insurtech start-ups in the longer term.

Contents

Key takeaways

Introduction to the Australian insurance industry

  • Market structure
  • Performance
  • Regulatory framework

The Australian insurtech ecosystem

  • The key players in Australian Insurtech
  • Insurtech is represented by the peak body Insurtech Australia
  • Three accelerators/incubators focus on the needs of insurers
  • Australia’s insurtech ecosystem has experienced rapid growth in recent years
  • Potential issues for the insurtech industry

List of charts/tables

Figure 1. Insurance industry structure

Figure 2. Annual revenue of Australian insurance sectors, AUD billion

Figure 3. Venture Insights Insurtech Ecosystem Map

Figure 4. Stage of development, Australian insurtechs, 2018 versus 2019

Figure 5. Capital raised to date by Australian insurtechs

Figure 6. Technology focus of Australian insurtechs, 2018 vs 2019

Figure 7. Australian insurtech industry clusters

Figure 8. Historical and projected revenues for Australian insurtech, by category of startup