Global adoption benefits all stakeholders – from brokers to policyholders, underwriters, and customers.
Gallagher, one of the world’s largest insurance brokers, puts the amount invested into InsurTech globally at $55 billion. Global InsurTech funding dipped below $1 billion in Q1 2024, but early-stage funding grew 26.5 percent quarter on quarter, despite a widespread funding slowdown.
This suggests insurers are starting to favour more sustainable investment strategies and are planning for the long term – banking on visions that will bring rewards some years down the line.

Gallagher, one of the world’s largest insurance brokers, puts the amount invested into InsurTech globally at $55 billion. Global InsurTech funding dipped below $1 billion in Q1 2024, but early-stage funding grew 26.5 percent quarter on quarter, despite a widespread funding slowdown.
This suggests insurers are starting to favour more sustainable investment strategies and are planning for the long term – banking on visions that will bring rewards some years down the line.
There are some common themes – more than 85 percent of insurers want to grow customer experience initiatives and the industry is shifting towards customer-centric strategies. This is a reflection of consumer demand, but importantly it signals that insurers are approaching innovations with confidence in widespread and long-term viability as a core part of business strategy.
These are the top innovations drawing their attention:
AI in underwriting
Traditionally, underwriting is full of time-consuming manual work. When left to AI, it can process data such as claim history, social media content, and market conditions to produce more accurate decisions.
Goldman Sachs’ 2024 Global Insurance Survey found 29 percent of insurers use AI, with 51 percent planning to implement AI technologies. Insurers see AI as having a broad range of uses: 73 percent think it will reduce operational costs and 39 percent are considering using AI for underwriting insurance risk.
Lemonade and Allianz, for example, use AI algorithms to assess risks and approve policies.
Blockchain in claims processing
Insurance fraud costs the U.S. $308.6 billion annually, according to Forbes, with 78 percent of policyholders worried about fraud. Blockchain technology helps address this.
Blockchain technology forms a distributed database system. This means offers a secure and transparent way to verify documents and transactions. Each transaction is recorded in blocks connected in an unalterable chain that guarantees data integrity. The data is what it is, and that certainty underpins verification.
This technology can improve trust between insurers and insured parties by providing transparency in the claims process. Etherisc, a blockchain-based insurance platform, and AXA’s Fizzy are among companies using this technology to automate flight delay claims.
Telematics in auto insurance
Telematics combines telecommunications, computer science, and electrical engineering to monitor and collect data on driving behaviours. It enables insurance based on how an individual actually drives.
Insurance thought leaders forecast the insurance telematics market will grow from $5 billion in 2023 to $11 billion by 2028. A strong sign of early growth in what could be a transformational change in insurance.
In auto insurance, telematics devices or apps installed in vehicles gather real-time data on how a person drives. This benefits both insurers and policyholders by encouraging safer driving, and it reduces the frequency and severity of claims. In the US, Allstate’s Drivewise and Progressive’s Snapshot are examples of telematic programs that offer discounts based on safe driving habits.
Digital platforms and IoT in health insurance
While digital platforms simplify processes in health insurance, the Internet of Things (IoT) enables remote patient monitoring through wearable devices and smart gadgets.
These devices collect real-time health data, which insurers can use to assess risks more accurately. As a result, offered health plans are often more personalised. IoT also improves preventive care by alerting users to potential health issues early on. This feature can help reduce the overall cost of healthcare and insurance claims.
IoT use in health insurance is a growing trend, with more insurers integrating IoT tech into their services.
Greentech for InsurTech
Interest in sustainable InsurTech investments remains strong, particularly in EMEA and Asia. ESG is a primary consideration for a third of EMEA insurers and 13 percent of Asia insurers.
Mercer and Oliver Wyman’s 2024 Global Insurance Survey found 70 percent of insurers already incorporating sustainability into their investment decisions plan to increase the money they put into sustainable investments over the next 12 months.
AXA Climate, for example, focuses on providing climate risk solutions with sustainable insurance products it says help businesses transition to a low-carbon economy.
Community-based Models
Peer-to-peer (P2P) insurance allows individuals to pool resources to share risk. Claims are paid from the pooled funds, and any remaining funds can be returned to the group or rolled over to the next period.
P2P insurance is more collaborative and cost-effective compared to traditional insurance models. Friendsurance, for instance, is a P2P platform for minor claims that lets unused funds be refunded by the end of the year.
AR for property inspection
Augmented Reality (AR) can be used for remote property inspections. Insurers can guide policyholders through the inspection process using AR to capture images and videos.
Hippo Insurance and Liberty Mutuals are among the companies that guide homeowners through self-inspections for the underwriting process. This InsurTech approach reduces the need for in-person visits, which may end up speeding admin and keeping customers happy.
The future for InsurTech
There are many bullish viewpoints on InsurTech in the public domain, and the big players are already leading the way. They clear a path for the rest of the market to build on these successes and learn from the challenges they can push through.
Key technologies such as cloud, connectivity, and AI will continue to expand their influence on the industry. The behaviour of the market in early 2024 suggests that the combination of advancing tech and early forays by big insurers has created a field ripe for innovations to take hold.
- InsurTech