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.
Introduction to the Australian insurance industry
- Market structure
- 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