A new report on Australia’s insurtech industry has identified barriers to investment and adoption, suggesting that greater financial backing from insurers and private sector investors could help accelerate innovation and improve risk management.
The report, commissioned by industry association Insurtech Australia, outlined a growing sector with global potential. However, it found that insurtech firms largely depend on the resilience of their founders rather than institutional support.
Insurtech Australia CEO Simone Dossetor said stronger collaboration between insurers and technology firms could speed up industry transformation.
“There is a real opportunity to build on the expertise and talent we have to ensure it keeps up with global developments,” she said.
The report noted that insurers and private investors have historically favoured offshore technology funding over domestic initiatives. Dossetor pointed to regulatory complexity and outdated technology infrastructure as key factors slowing down local adoption.
“Without investment, the industry faces a future where policyholders experience longer wait times for claims than their global peers, inferior customer experiences, more disputes, and skyrocketing costs,” she said.
Titled “Insurtech Down Under: Trends, Tech, and Triumphs,” the report highlighted areas where insurtech firms can contribute to industry improvement.
Dossetor said adopting technologies such as artificial intelligence, cybersecurity enhancements, and data-driven risk management could improve efficiency. She also noted that embedded and on-demand insurance models could enhance customer experience.
“The reality is that Australian Insurtech needs strong local partnerships to achieve this and to lead innovation,” she said.
The report’s findings align with a new initiative between Australia and the UK, which aims to improve access to investment and support for insurtech firms expanding into both markets.
The UK-Australia Insurtech Pathway was launched through a partnership between the UK’s Department for Business and Trade (DBT), Insurtech UK, and Insurtech Australia. The program is intended to help insurtech firms navigate regulatory requirements, establish business operations, and connect with potential investors.
Insurtech Australia’s report identified several growth opportunities for the industry, including:
Dossetor referenced the 2022 parliamentary inquiry into flood insurance claims handling in Queensland and New South Wales as an example of where insurtech could improve industry performance.
“Many of the complaints highlighted centred around poor communication, a challenge that our technology can directly address,” she said.
She added that investing in local insurtech solutions could enhance disaster response capabilities, improving claims management during bushfires, floods, and other major events.
“One of the biggest challenges in insurance is the complexity and inefficiency of claims processing, especially during natural disasters when thousands of claims flood in at once,” Dossetor said.
