The insurance industry may have a stable core product, but nearly everything around it is changing, fast. Customer expectations are higher, processes are becoming more digital, and technologies like AI are reshaping how policies are sold, managed, and serviced.

That’s where insurtech comes in.

What Is Insurtech?

Insurtech (short for insurance technology) refers to companies that use technology to improve, simplify, or reinvent the insurance experience. Most are startups, although established carriers are increasingly adopting similar approaches.

These companies combine insurance and technology to create solutions such as:

• AI and machine-learning tools
• Big data and predictive analytics
• Automated workflows
• Digital distribution platforms
• Mobile-first apps
• Cloud-based policy systems
• APIs and integrations

Just as fintech transformed financial services, insurtech is now reshaping how insurance is bought, sold, underwritten, and managed.

Want to dive deeper into insurtech?

‍Download our free 2025 Insurtech Guide and explore key trends, startup examples, and how to apply them to your agency or brokerage.

How Big Is the Insurtech Market? (2025–2026)

The insurtech market continues to grow, but with a shift in focus.

According to the Global InsurTech Report for Q3 2025:

• USD 1.01 billion in global insurtech funding
• 74.8% of the capital went to AI-driven companies
• Only 76 deals, the lowest count since 2020
• Commercial-focused insurtechs raised USD 470.7M
• (Re)insurers backed 51 tech investments

Despite fewer deals, the money is increasingly concentrated in AI-first solutions, signaling where the industry is heading in 2026.

Why Are Insurtechs Matters?

The insurance sector is one of the last major industries to fully modernize. While customers now expect digital experiences, many insurers still rely on manual workflows.

Insurtechs are filling that gap by:

• unlocking new business models
• reducing costs and fraud
• accelerating claims and underwriting
• improving data accuracy
• increasing accessibility and personalization
• helping insurers focus more on human advisory roles

Benefits of Insurtech

For insurers, brokers, and MGAs

• Automation of repetitive work
• Faster onboarding and policy issuance
• Better insights through structured data
• More time for client interaction
• Higher retention and better cross-sell opportunities

For policyholders

• Fully digital experiences
• Faster service and clearer pricing
• Personalized insurance products
• Real-time updates and self-service options

Common Insurtech Use Cases

Insurtech companies operate across nearly every insurance vertical, including:

• Auto insurance (usage-based models, telematics)
• Home insurance (IoT sensors, digital claims)
• Life insurance (AI underwriting, tailored pricing)
• Health and pet insurance (instant claims, app-based policies)
• Commercial lines (cyber insurance, automated risk assessment)

Key Challenges for Insurtechs in 2026

Even with fast growth, insurtechs face challenges such as:

• Regulatory complexity (local and international)
• Integration with legacy systems
• Building trust with customers and partners
• Sustainable unit economics
• Data privacy and security requirements

Insurtech Trends to Watch in 2026

• AI-powered underwriting
• Embedded insurance built into everyday platforms
• Usage-based and behavior-based pricing
• Partnerships between insurers and insurtech startups
• WhatsApp-based automation and intelligent agents
• Growth of micro-insurance and parametric products

6 Insurtech Startups to Watch in 2026

Here are six fast-growing companies transforming the industry from different angles:

• COVU: combines AI automation with operational outsourcing for agencies. They streamline internal workflows and help agencies deliver a better customer experience. Recently raised $12.5M Series A, indicating rapid expansion ahead.
• Foliume: is an AI platform for brokers and agencies that eliminates repetitive tasks and improves productivity without replacing existing systems. At the center is Wilfredo, the first WhatsApp-based assistant for insurance brokers and agents. It can quote in seconds, renew policies, locate documents, send information to clients and identify cross-sell and retention opportunities. All directly from WhatsApp.‍
• Agentero: gives agents access to modern carriers and provides tools to manage relationships, distribution, and customer engagement from one digital workspace.‍
• Glovebox: offers a hybrid digital experience for policyholders. With its mobile app and web portal, customers can access documents, make payments, file claims, and contact their agent, all in one place.‍
• Life5: is a Spanish insurtech offering fully digital life insurance. It focuses on fast, mobile-friendly underwriting and a modern customer experience.‍
• Vouch: provides insurance specifically designed for AI-powered companies, covering risks related to models, algorithms, and data-driven products, a fast-growing category.

Final Thoughts

Insurtech isn’t one type of company, it’s an umbrella term for a wide range of solutions helping the industry evolve: AI underwriting, automation, embedded insurance, digital distribution, and better customer experiences.

What they all share is the same goal: making insurance faster, more digital, and easier for everyone involved.

Want to go deeper?

Download our updated 2026 Insurtech Guide with trends, startup lists, and practical insights for brokers and insurers looking to innovate.