The first half of the year closed with investments in the insurance sector amounting to 450 million eurosor, with the forecast of reaching 1 billion by the end of 2024. These are the data collected by the Italian Insurtech Association and which will be presented tomorrow, September 17, during the IV edition of the Insurtech Day, the event that brings together the Italian insurance community to take stock of theinvestments and the state of the art of the digitalisation of the insurance market.
Insurtech Market in Italy: A New Chapter Opens
Of the billion euros of investments forecast by IIA by the end of 2024, 78% is expected from insurance companies, 11% from banks, 5% from insurance brokers, and 6% from players active in other sectors. This last figure is particularly relevant as more and more non-insurance players, among which operators in the telco and health sectors stand out, are expanding their offerings also towards insurance services to be integrated into their products.
Those who invested most in technological innovation related to insurance were, once again, the same companies operating in the sector. Country, while abroad is strong also the weight of start-ups and venture capital. Investments that increasingly aim to create technological platforms capable of giving life to service ecosystems.
According to the Association’s analysis, in fact, 33% of the investments planned for 2024 – approximately 300 million euros – will be allocated to insurtech ecosystems: a set of integrated services that go beyond the normal concept of insurance coverage and that, to meet consumer needs, involve the use of solutions and technologies to offer an extended package consisting of prevention, repairs and continuous assistance, which goes beyond the simple reimbursement of damages.
Investments have reached 450 million euros
These systems are developing significantly in recent years, also thanks to the development of new technologies. Proof of this growing interest is the data on the increase in investments in the insurtech ecosystem, 33% of the total, a significant increase compared to the 10% figure in 2020.
Within these ecosystems, The main investment areas are: technology platforms, mobile interfaces and infrastructure (35%), followed by marketing and communication (25%), new value-added services and partnerships (14%) and new skills (14%).
The forecasts of IIA also anticipate an increase in investments for 2025, which will reach a total of 1.150 billion euros. Of these, approximately 420 million euros (38%) will be allocated to four main insurtech ecosystems: home, mobility, health, corporate, supply chains on which the insurance community will discuss during the Insurtech Day. The ecosystems will therefore record, in 2025, a growth of +27% in terms of investment.
The health ecosystem itself, on which the 13% of insurtech investments dThis year, it is the protagonist of the research conducted by IIA and BIME Consulting, entitled: “Artificial Intelligence and Health Insurance: Growth opportunities and a driving force for public-private integration”, focused on how Generative AI is permeating the health insurance sector.
The survey found that 92% of insurance providers interviewed believe that artificial intelligence will significantly improve the healthcare services offered to customers, paving the way for an era of more personalized and efficient care. This means that AI will allow for a dynamic and adaptive approach, and is able to respond in real time to patient needs by creating “tailor-made” policies.
Focus on home and mobility
The day will also focus on ecosystemsi home and mobility, duand supply chains in which the use of artificial intelligence is significantly expanding the range of services offered, going beyond the simple concept of insurance coverage, but opening up to a series of additional customer needs. Risk assessment, protection for all accessories associated with a good and the consequent repair of the latter guarantee a much more advanced customer experience, which puts the needs of the consumer at the center.
“We are finally approaching the goal of 1 billion euros invested in insurtech in our country, a goal that we could reach thanks to the ever-increasing interest of non-insurance players in this market. We are witnessing the birth of increasingly complex insurance ecosystems, which, just like super apps, will integrate a multitude of services in a single solution, bringing many advantages to consumers who will no longer have to search for the most convenient policies, but will have integrated and customized packages”, declared the President of IIA, Simone Ranucci Brandimarte. “The emergence of these ecosystems will create further collaborations between insurance and non-insurance players, paving the way for a new concept of insurance. The market is maturing quickly, although not yet at the level of other European countries, but thanks to the advent of new technologies we will see the emergence of new services that can improve consumer experiences.”
