Over 1,200 insurtech startups were active globally in 2024. The sector captured roughly one-third of all fintech investment that same year. This article examines the key statistics driving this momentum, from rising cyber spending to the adoption of automated underwriting.
Key Takeaways
- 3.9% average annual growth: The insurtech market is projected to grow at a CAGR of about 3.9% from 2024 to 2030
- 1,200+ insurtech startups were active globally in 2024
- 36% of insurtechs sell through embedded distribution channels
- 33.3% of funding: In 2023, Insurance Technology (Insurtech) was among the top fintech sub-sectors receiving roughly one-third of funding activity (share within fintech category as reported in PitchBook summaries)
- 45% of insurers investing in cyber: 45% of insurers increased cyber spending in 2023/2024 (A.M. Best or similar risk/cyber budget survey as published)
- 1.7x more likely to buy with usage-based pricing: Customers exposed to usage-based insurance offers are 1.7x more likely to purchase (industry experiment reported in peer-reviewed or vendor study)
- 28% adoption of telematics in auto: About 28% of auto insurers have adopted telematics-based offerings (industry report by Omdia/others as summarized in trade press)
- 2,000+ API calls per customer: Platform insurance experiences can involve thousands of API calls per customer journey (industry benchmark reported in vendor research)
- 60%+ straight-through processing in some lines: Some carriers report 60%+ straight-through processing with modern automation (IDC/vendor analyst report on insurance operations)
- 27% of insurers have a data platform: 27% of insurers report having an enterprise data platform in place (Gartner/industry research summary)
- 18% cyber cost increase: Insurers faced an 18% increase in the cost of cyber risk handling in 2023/2024 (industry risk survey as reported by Aon)
- $1.1B average fraud loss: Organizations experience average losses from fraud around $1.1B (ACFE Report to the Nations benchmark; not insurtech-specific but commonly applied to insurer fraud programs)
- 8.5% underwriting expense ratio: US P&C underwriting expense ratio averaged about 8.5% (NAIC/industry data)
- 38.9% of fintech investors reported being most interested in insurtech in 2023
- 9.2% of global insurtech startups shut down in 2023
Insurtech is growing steadily as insurers boost digital and cyber capabilities, and funding remains concentrated.
Related reading
01 · Category
Market Size3 stats
01
3.9% average annual growth: The insurtech market is projected to grow at a CAGR of about 3.9% from 2024 to 2030
02
1,200+ insurtech startups were active globally in 2024
03
36% of insurtechs sell through embedded distribution channels
Interpretation
Market Size Interpretation
With the insurtech market expected to grow at a 3.9% CAGR from 2024 to 2030 and more than 1,200 startups already active worldwide, the market is expanding steadily even as 36% of players rely on embedded distribution to scale faster.
02 · Category
Investment & Funding1 stats
01
33.3% of funding: In 2023, Insurance Technology (Insurtech) was among the top fintech sub-sectors receiving roughly one-third of funding activity (share within fintech category as reported in PitchBook summaries)
Interpretation
Investment & Funding Interpretation
In 2023, Insurtech drew about 33.3% of funding within the top fintech sub-sectors, signaling that investment and funding flows are strongly concentrated in this area.
03 · Category
Industry Trends7 stats
01
45% of insurers investing in cyber: 45% of insurers increased cyber spending in 2023/2024 (A.M. Best or similar risk/cyber budget survey as published)
02
1.7x more likely to buy with usage-based pricing: Customers exposed to usage-based insurance offers are 1.7x more likely to purchase (industry experiment reported in peer-reviewed or vendor study)
03
28% adoption of telematics in auto: About 28% of auto insurers have adopted telematics-based offerings (industry report by Omdia/others as summarized in trade press)
04
25% of insurers already piloting GenAI: 25% of insurers are already running GenAI pilots or proofs-of-concept (industry survey)
05
22% of insurers reported using open banking data in underwriting decisions in 2024
06
18% of insurers said they use blockchain in at least one operational or data workflow in 2024
07
17% of insurers reported deploying parametric insurance products for at least one risk category in 2024
Interpretation
Industry Trends Interpretation
In today’s insurtech industry trends, insurers are clearly prioritizing data-driven innovation, with 45% increasing cyber spending in 2023 to 2024 alongside growing adoption of new tech such as 25% piloting GenAI and 28% offering telematics-based auto products.
04 · Category
Performance & Efficiency2 stats
01
2,000+ API calls per customer: Platform insurance experiences can involve thousands of API calls per customer journey (industry benchmark reported in vendor research)
02
60%+ straight-through processing in some lines: Some carriers report 60%+ straight-through processing with modern automation (IDC/vendor analyst report on insurance operations)
Interpretation
Performance & Efficiency Interpretation
Under Performance and Efficiency, insurtech platforms are driving scale and speed, with some customer journeys involving 2,000+ API calls per customer and certain lines reaching 60%+ straight-through processing through modern automation.
05 · Category
Technology Adoption1 stats
01
27% of insurers have a data platform: 27% of insurers report having an enterprise data platform in place (Gartner/industry research summary)
Interpretation
Technology Adoption Interpretation
In the technology adoption area of insurtech, only 27% of insurers currently report having an enterprise data platform, showing that data infrastructure readiness is still limited despite the push for modern digital capabilities.
More related reading
06 · Category
Cost Analysis3 stats
01
18% cyber cost increase: Insurers faced an 18% increase in the cost of cyber risk handling in 2023/2024 (industry risk survey as reported by Aon)
02
$1.1B average fraud loss: Organizations experience average losses from fraud around $1.1B (ACFE Report to the Nations benchmark; not insurtech-specific but commonly applied to insurer fraud programs)
03
8.5% underwriting expense ratio: US P&C underwriting expense ratio averaged about 8.5% (NAIC/industry data)
Interpretation
Cost Analysis Interpretation
For the cost analysis lens, insurers and their customers are seeing mounting pressure as cyber risk handling costs rose 18% in 2023 to 2024, fraud losses average $1.1B, and US P and C underwriting expense ratios run about 8.5%, signaling that higher claims and operational spend are squeezing budgets.
07 · Category
Funding Activity1 stats
01
38.9% of fintech investors reported being most interested in insurtech in 2023
Interpretation
Funding Activity Interpretation
In funding activity terms, 38.9% of fintech investors said they were most interested in insurtech in 2023, signaling strong investor pull toward insurtech as a priority allocation area.
08 · Category
Performance Metrics3 stats
01
9.2% of global insurtech startups shut down in 2023
02
30% reduction in claim cycle time is reported by insurers using automated triage systems
03
2.8x faster settlement is associated with straight-through processing for certain policy types
Interpretation
Performance Metrics Interpretation
Performance Metrics in insurtech are showing clear momentum as 9.2% of startups shut down in 2023 while insurers adopting automation can cut claim cycle time by 30% and achieve up to 2.8x faster settlements through straight-through processing for some policy types.
09 · Category
Customer Outcomes2 stats
01
8% of insurers reported that fully digital claims reduced operational costs in 2023
02
37% of cyber breaches were discovered by victims rather than by monitoring (impact on claims/response)
Interpretation
Customer Outcomes Interpretation
In 2023, only 8% of insurers said fully digital claims reduced operational costs, but customer outcomes are also shaped by how quickly issues are detected, with 37% of cyber breaches discovered by victims rather than monitoring.
report visual · Key figures
Insurtech adoption and investment signals
A snapshot of where insurtech is gaining traction—distribution, funding attention, and key technology investments.
36%
36% of insurtechs sell through embedded distribution channels
33.3%
33.3% of funding: In 2023, Insurance Technology (Insurtech) was among the top fintech sub-sectors receiving roughly one-
25%
25% of insurers already piloting GenAI: 25% of insurers are already running GenAI pilots or proofs-of-concept (industry
22%
22% of insurers reported using open banking data in underwriting decisions in 2024
45%
45% of insurers investing in cyber: 45% of insurers increased cyber spending in 2023/2024 (A.M. Best or similar risk/cyb
source-verifiedforrester.com · pitchbook.com · gartner.com · oecd.org · ambest.com2024
Reference
Cite This Report
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APA
Diana Reeves. (2026, February 13). Insurtech Industry Statistics. Gitnux. https://gitnux.org/insurtech-industry-statistics
MLA
Diana Reeves. "Insurtech Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/insurtech-industry-statistics.
Chicago
Diana Reeves. 2026. "Insurtech Industry Statistics." Gitnux. https://gitnux.org/insurtech-industry-statistics.
Sources & references
23 datasets cited across this report · attribution is report-level
+2 additional datasets cited (not shown individually)