The 2025 Insurtech Market Report by Insurtech Australia and PFS Consulting highlights a maturing startup ecosystem that's moving beyond the "growth at all costs" mindset. With a total of US$1.6B invested across 293 Australia and NZ-based insurtechs over the past 12 years, the focus has shifted to capital efficiency, regulatory readiness, and scalable digital solutions.
Funding peaked at US$384M in 2020 but dropped to US$17M by 2023, before a slight rebound in 2024. Investors now prioritize financial discipline, with fewer but larger deals focused on AI-driven and automation-heavy insurtechs.
While just 20% of Aussie insurtechs are funded, 45% of all funding has gone to Insurtech Australia members—suggesting strong network effects. The organisation continues to be a crucial bridge between startups, regulators, and industry leaders, fostering a community built on education, advocacy, and innovation and, as a truly Tans-Tasman Insurtech, InsuredHQ is a proud member.
Australia's insurtechs are building for the long haul—balancing innovation with responsibility. As ESG and digital transformation become non-negotiables, the sector is poised to redefine what insurance looks like in a connected, data-rich future.
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