Insurtech goes down under

Having recently spent a week in Australia, I can report the insurtech scene Down Under is in rude health! I was the guest of Insurtech Australia which is the trade association for Australian insurtechs and is similar to Insurtech UK in its aims and objectives.

I was fortunate enough to attend their conference, InsurtechLIVE last week, sharing highlights about the UK insurtech market. In preparing for my keynote speech, I discovered some interesting facts about the Australian insurtech market:

1. Australia is in the top five countries for late stage insurtech funding in 2022-23. According to Gallagher Re’s Global InsurTech Report Q4 2023, it enjoyed 3 late stage deals over that period, worth some US$220m, more than the UK or China.
2. Australia’s insurtech association has nearly 100+ insurtech companies as members. A significant number of them are also operating in the UK market and even more have active plans to expand into the UK.
3. Australia’s insurance scene is dominated by four key players: IAG, Suncorp, QBE and Allianz, which control over 75% of the market. Of these, the top two companies are primarily focused on the Australian market.
4. Australia’s insurtechs are international in outlook, with founders establishing teams all over the world. I met at least one founder (Daniel Fogarty from Evari) on three different continents over the past year!

I also had the pleasure of speaking at the British Consulate-General’s insurtech forum organised by the UK Department for Business and Trade in Sydney. It was well-attended by a number of insurtechs who are part of the Insurtech Australia delegation to the UK for Insurtech Week.

UK representatives highlighted the advantages of the UK-Australian Free Trade Agreement which allows for the free flow of data, the export of services and the relaxation of visa requirements between the countries to encourage bilateral trade. It is designed to make it easier than ever for UK companies to do business in Australia and Australian companies to do business in the UK.

The UK Department for Business and Trade recognises that insurtech, like fintech, is a sector growing in importance for the UK economy and it is keen to encourage its export into overseas markets, as well as inward investment. This is a very positive development for our UK insurtechs and is timely given the recent downturn in global investment funding for this sector since an all-time high in 2021.

By taking part in government supported trade missions, including down under, UK companies can access opportunities for global expansion and investment which hopefully improve chances for insurtech growth in 2024 and beyond.

If you would like to meet the Insurtech Australia delegation when they come to London for Insurtech Week, please get in touch with Insurtech UK via email: [email protected]