Discovering our Community: Insurtech insights and trends shaping the future of insurance

Insurtech’s structural maturity and core transformation

The insurtech sector is entering a phase of structural maturity, where the convergence of AI-driven analytics, data orchestration layers, and embedded distribution models is redefining the insurance value chain end-to-end. Unlike the first wave of digitalisation, focused mainly on front-end automation and customer experience, the new generation of insurance technology initiatives targets the core infrastructure of underwriting, pricing, and claims operations, driving measurable efficiency and scalability gains across carriers and intermediaries. In parallel, this new wave is increasingly oriented toward CAT-Nat risk themes, recognising the rising strategic importance of natural catastrophe exposure. This focus is further accelerated by recent regulation requiring companies to secure adequate protection against climate-driven catastrophic events, making advanced risk modelling and coverage solutions not only a competitive differentiator but a compliance necessity.

Between 2020 and 2024, the global insurtech space grew at a 22% CAGR, becoming the third fastest-growing FinTech vertical, behind Trading & Investment and Lending.
 According to recent projections, the sector is expected to grow at a 13% CAGR between 2025 and 2030, reaching a market size of approximately USD 2.2 trillion by 2030¹. At the same time, funding patterns are shifting: from pure distribution startups to deep-tech solutions leveraging AI, IoT, cloud-native platforms, and open APIs for interoperability with incumbent systems².

Insurtech 2025 and the future of insurance technology: from stable funding to sustainable growth

Following the Covid-19–driven boom, funding levels have stabilized worldwide. Insurtech companies reported USD 2.5 billion in investments in H1 2025, broadly consistent with USD 2.4 billion in H1 2024 and USD 2.5 billion in H1 2023. This consistency signals that the market is moving from speculative growth toward sustainable scaling and operational integration, where capital efficiency, regulatory alignment, and API-based interoperability are key competitive levers².

At the European level, frameworks such as DORA and the AI Act are acting as dual catalysts: enforcing higher standards for data resilience and accelerating investment in compliant, data-driven architectures.

Insurers are increasingly deploying real-time analytics, usage-based pricing models, and machine-learning–powered claims triage, making insurtech less a standalone innovation category and more the technological backbone of the modern insurance enterprise.

Key insurtech trends: embedded insurance, AI, and UX transformation

The evolution of insurtech 2025 is driven by a set of structural trends that are redefining how insurance products are designed, distributed, and experienced. These insurance technology trends are reshaping both the business models of incumbents and the innovation strategies of startups across the value chain.

Embedded distribution strategies

By integrating protection products directly into digital ecosystems - from mobility and e-commerce to fintech and health platforms - insurers can deliver real-time, contextual coverage. According to NTT DATA’s Insurtech Global Outlook 2025, embedded models could represent over 25% of global insurance distribution by 2030, making integration and data orchestration essential competitive levers³.

Technological approach and infrastructure modernization

The industry is undergoing a deep technological reinvention, shifting from legacy systems to cloud-native, data-centric infrastructures. A deep technological shift is underway, as insurers replace legacy systems with cloud-native, API-driven architectures and AI-powered analytics.

Capgemini’s World InsurTech Report 2024 shows that 74% of insurers are investing in core system modernisation, enabling greater scalability, compliance, and ecosystem collaboration⁴.

Product and offering evolution

Insurers are moving toward data-driven, dynamic products powered by AI, IoT, and usage-based models. From parametric insurance to on-demand microcoverage, offerings are becoming personalised and adaptive.

As BCG’s State of InsurTech 2024 reports, over 40% of new funding now targets analytics-driven underwriting, signaling a shift from distribution to core risk intelligence⁵.

UX re-engineering and customer experience

Insurance is evolving from a transactional model to an experience-driven service. Digital-native customers expect instant onboarding, transparent pricing, and AI-enabled claims resolution.

According to McKinsey’s Future of Insurance 2025, 70% of interactions are now fully digital, and AI-powered claims can cut resolution times by up to 80%, making UX design and automation key differentiators⁶.

Fintech District Community: insurtech use cases

Today, our Community includes 26 Insurtech companies in total. The large majority (20) are Italy-based fintechs, while six (Descartes Underwriting, Legentic, Minalea, Squarelife, Wakam, Zelros) come from abroad. Notably, seven of these players were founded after 2020 (Braino AI, ClimateCharted, Expert Revolution, Nano-I-Tech, PowerAI, TrueScreen, Wopta Assicurazioni, highlighting a strong level of recent innovation in this segment. It embraces not only digital-native insurance carriers, but also a wide range of technology and service providers that enable and transform the broader insurance value chain, reflecting the diversity and richness of our ecosystem. Moreover, this area includes Yolo, currently the only publicly listed insurtech in Italy. In addition, nine operate with a B2B business model, and three (Tech Engines, ViteSicure, Wallife) have a female CEO or founder. Our ecosystem is further strengthened by strategic partners such as the Italian Insurtech Association, underscoring our deep integration within the national innovation landscape.

This diverse community structure creates fertile ground for collaboration and connections and here are some examples:

• Lokky: Italian insurtech Lokky, which offers digital insurance for freelancers and SMEs, has joined the global insurance group Hiscox. The move strengthens Hiscox’s presence in Italy’s micro-enterprise segment, while giving Lokky access to greater resources and international know-how. Founded in 2018, Lokky stands out for its fully online model and ability to simplify complex risk coverage for small businesses, now poised to scale its offering under Hiscox’s umbrella.
• Wallife: in late 2024, Insurtech Wallife teamed up with Fastweb, a Corporate Partner of our ecosystem, to launch Fastweb Protect, a digital-security service combining connectivity, cybersecurity and insurance. The solution protects users from device damage, phishing, data breaches, and identity theft through Wallife’s coverage. Targeting consumers and small businesses, the partnership reflects the growing need for accessible digital-risk protection amid Italy’s sharp rise in cyber-attacks. This use case was developed within VIPE (Visa Innovation Program Europe), of which we are partner.
• Wopta Assicurazioni: Italian phygital MGA Wopta Assicurazioni has raised about €12 million to date (including a €4.1m round in 2024) and – according to early 2025 news – is planning a future financing programme of up to €50 million to accelerate growth. Today, the company serves over 200,000 customers and works with roughly 2,500 intermediaries alongside more than 200 direct agreements with “Wopters”. As Wopta keeps growing, it plans to expand its distribution channels and push into France and Spain, reinforcing its ambition to scale in the European insurtech market.
• Neosurance: in 2022, MAG Group, a long-established Italian insurance broker, acquired a 50.065 % stake in Neosurance, an Italian insurtech and digital insurance broker specialized in open insurance. The deal enables MAG to accelerate its digital transformation and to offer more flexible, data-driven insurance solutions, while Neosurance gains access to MAG’s extensive broker network and international footprint. Through this partnership, the combined group aims to scale innovative distribution models, including instant, pay-per-use and subscription-based policies distributed via API, apps or other digital properties, thus enabling embedded and B2B2C insurance offerings to companies and end customers.