New Report Looks at Insurtech Growth Potential

This survey data offers a snapshot on growth potential;

Access to capacity is a key issue for many insurtechs as they start and grow.  This report provides a current snapshot of the capacity market, exploring providers’ appetite and asks of insurtechs.

Our survey gathered insights from a broad cross-section of the insurance market, with a focus on those responsible for providing capacity to underwriters. Respondents were primarily traditional insurers, plus Managing General Agents (MGAs), and reinsurers. Survey respondents expressed a positive outlook for insurtech capacity provision in 2025, with strong expectations that premium volumes delegated to insurtechs will grow, and expectations for the highest increases in life and health. Over 80% were likely to engage a new insurtech Managing General Agent in 2025.

75% of respondents said they would recommend working with insurtech MGAs to other underwriters. This sentiment was highest for personal lines and life and health.

When considering whether to delegate underwriting authority the single most important factor reported was access to the insurtech’s data, followed by level of insurance experience in the insurtech’s team, and the uniqueness of their product proposition. The least important factor was the insurtech’s brand.

The most significant external barriers to working with insurtechs were availability of appropriate opportunities and doubts about team expertise or underwriting discipline, followed by access to claims data and funding and solvency.

While rated lower than external factors, internal barriers were also seen to present a challenge. Highest was a lack of understanding or appetite internally, followed by insurtechs not being core to the capacity provider’s strategy, difficulty in conducting effective due diligence, and a lack of experience dealing with tech-led businesses.

The research paints a picture of insurers keen to provide capacity, but on their own terms and not for every aspect of the market. Insurtechs that can demonstrate originality, robust data capabilities, operational discipline, and an experienced team are more likely to attract backing in a competitive landscape.

Read the full report here: https://www.insurancedatalab.com/reports/access-to-capacity-ample-or-absent/