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.
Introduction to the Australian insurance industry
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