Question 1

Is the Australian insurtech sector finally moving past the startup phase?

Accepted Answer

The market is transitioning into a high-growth phase, with revenues projected to reach $1.12 billion by 2024. Commercial maturity is improving rapidly, evidenced by the proportion of pre-revenue firms dropping from 50% in 2018 to 29% in 2019.

Question 2

How fast is the revenue growing for these new players?

Accepted Answer

Sector revenues are accelerating from a historical CAGR of 7.4% to a projected 13.9% annually through 2024. Segment-focused disruptors represent the most aggressive growth pocket, with an expected CAGR of 68.9% over the next four years.

Question 3

Are these startups still trying to kill off the big insurance companies?

Accepted Answer

The industry has shifted from pure disruption to a collaborative model where incumbents provide funding and partnership opportunities. This ecosystem expansion saw the number of active insurtechs in Australia grow by 53% in the year leading to March 2019.

Question 4

What is the biggest threat to the market's total value?

Accepted Answer

Regulatory pressure following the financial services Royal Commission is a primary risk to the $97 billion in gross earned premiums recorded in 2018. Structural deterioration of these premiums could shrink the total addressable market for both startups and established incumbents.

Insurtech White Paper Part II: Australian Insurtech Market Overview

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