Industry research
InsurTech
Scope
Europe
Companies
90
Key takeaways
What is the scope of this industry report?
The European InsurTech market comprises businesses that develop software to improve and automate processes in the insurance sector. These span areas such as underwriting, policy administration and assistance, claims handling, fraud detection, risk assessment, account reconciliation, as well as insurance product management. Some of these software providers also offer (third-party) insurance products. For example, Qover and Zego develop software that includes embedded insurance products. As such, we segmented the European market by business model into the following categories: (i) software and (ii) software and services.
What does the InsurTech landscape look like in Europe?
Identified InsurTech players primarily serve insurance companies, brokers and managing general agents (MGAs), helping them improve efficiency across the insurance value chain. For example, Acturis addresses the administrative burden faced by brokers by integrating quotations, policy administration, customer documentation and back-office activities within a single platform. Similarly, INSTANDA helps insurers overcome the lengthy product-development processes associated with inflexible legacy systems through a no-code platform that enables faster product configuration and launch (Acturis, May 2025; INSTANDA, October 2024). Moreover, in the vehicle insurance niche, Tractable reduces the manual work involved in assessing vehicle damage by using image-based AI to triage claims and prepare initial repair estimates, shortening claims cycles by up to ~8 days (Tractable, December 2025). When zooming in on the impacts of AI development on the InsurTech industry, AI and large language models (LLMs) increasingly automate the analysis of policy documents and claims records, supporting faster underwriting, claims processing and customer communications (McKinsey & Company, July 2025). Going forward, insurers are expected to move from tools that assist individual employees towards agentic AI systems that coordinate multiple steps across broader workflows, leaving just very complex or high-impact decisions to be made with human oversight (Upliift, March 2026; McKinsey & Company, July 2025).
What is the level of investor activity in the InsurTech market landscape in Europe?
The European InsurTech market remains highly fragmented, comprising >750 active companies across 28 countries, with no single player holding a dominant position across the continent (IFZ, March 2024). This fragmentation reflects the broad range of insurance activities addressed by market participants. Shares of players overlap across activities, including ~53% active in marketing and distribution, ~40% in claims and customer service, as well as ~37% in product development, pricing and underwriting (IFZ, March 2024). Moreover, the market landscape is heavily concentrated in the UK, Germany and France, which together account for ~51% of identified European players (IFZ, March 2024). Specifically, the UK ranks second globally (behind the US) in terms of InsurTech funding, attracting ~5% of global investment between 2022-2024, supported by the size of its domestic insurance market and InsurTechs’ access to incumbent insurers’ underwriting capacity and customer data (McKinsey & Company, September 2025; IFZ, March 2024). Despite the largely domestic nature of the underlying insurance market, with only ~11% of European insurance premiums generated through cross-border activity, InsurTech platforms are increasingly expanding internationally as their technology-led business models facilitate cross-border expansion. For example, the share of UK InsurTech firms expanding internationally increased from ~52% in 2023 to ~62% in 2025. Nevertheless, regulation and customer preferences remain important considerations when selecting and entering new markets (McKinsey & Company, September 2025; EIOPA, June 2025).
What are the key ESG considerations in Europe's InsurTech industry?
On the investor side, the European InsurTech sector continues to attract considerable VC investment, though funding levels have normalised since the market boom in 2021, when abundant liquidity and accelerating insurance digitalisation drove ~€2.5bn in sector-wide fundraising within a single year (astorya.vc, March 2026). Rising interest rates and declining technology valuations caused a pullback in funding, with new capital raised dropping to ~€700m in 2023, rebounding to ~€820m in 2024, before retreating again to ~€600m in 2025 (astorya.vc, March 2026). Investors have consequently become more selective, shifting their focus from growth at all costs towards companies demonstrating sustainable growth and recurring customer value (Upliift, March 2026). INSTANDA offers a clear illustration of investor appetite for InsurTechs with proven business models. Having delivered >40% revenue CAGR since its previous funding round, achieved full profitability and grown its customer base to >80 tier-one insurers and MGAs, the business raised ~$20m in October 2025 (INSTANDA, October 2025). Beyond funding rounds, M&A activity is supporting gradual market consolidation as established players broaden their capabilities and geographic reach. For example, Akur8, which specialises in AI-supported pricing for property and casualty insurers, acquired Arius in 2024 to add reserving software capabilities, followed by Slope Software in 2026 to expand into life and annuity insurance (Akur8, March 2026; Akur8, September 2024). Moreover, Lumera (a Sweden-based firm focused on software development for life and pensions insurance) acquired ITM (UK) in 2024 to expand its presence across the UK and in the policy administration systems (PAS) market (Lumera, July 2024).
Company benchmarking
Market growth
The global insurance software market generated ~$19.0bn in revenue in 2025 and is projected to grow to ~$30.2bn in 2030, registering a +9.7% CAGR over the period (Technavio, May 2026)
The European insurance market is anticipated to reach ~$2.3tn in gross written premiums in 2026, a figure expected to increase to ~$2.6tn by 2030 (+2.8% CAGR 2026-2030; Statista, June 2026)
Positive drivers
Advancements in AI are creating tailwinds for InsurTech players. As insurers increasingly seek specialist AI-based tools to improve efficiency, with successful transformations reducing onboarding costs by ~20-40% and increasing claims accuracy by ~3-5%, players focused on developing such tools are expected to see strong demand uptake over the coming years (McKinsey & Company, July 2025)
Embedded insurance and digital distribution growth represent structural opportunities for the sector. As digital businesses increasingly integrate insurance at the point of sale to offer more convenient coverage and unlock new revenue streams, embedded-insurance premiums are forecast to increase from ~$13bn in 2025 to >$70bn globally by 2030. This shift depends on technology provided by identified InsurTech players (e.g. connecting distributors with insurers, managing integrations and claims), creating meaningful revenue growth opportunities across the market (BCG, June 2025; Qover, September 2026)
Growing climate-related risks are driving demand for more innovative insurance models. As extreme weather pushes insured losses to ~70% above historical norms, insurers are increasingly turning to more sophisticated risk-assessment tools and innovative coverage models, supporting strong demand and revenue growth upside for InsurTechs' offering predictive analytics and parametric insurance software (Mandalore Partners, August 2025)
Negative drivers
Legacy technology infrastructure and IT systems remain a key constraint on insurers’ adoption of digital tools. Among ~200 decision-makers at global insurance companies, ~45% cited outdated technological infrastructure as the primary obstacle to adopting digital tools and software, a dynamic that could delay InsurTech implementations and weigh on players’ top-line growth trajectory (EPAM, April 2024)
Conservatism and resistance to change continue to slow technology adoption across the insurance sector. Among a subset of surveyed European insurance firms, ~35% highlighted internal human resistance to change as a primary factor limiting AI adoption within workflows, potentially lengthening the sales cycles of InsurTech players and hindering revenue growth (Camelot Consulting, August 2025; Deloitte, April 2025)
Tightening European regulation is driving up operational costs for the sector. Since January 2025, the Digital Operational Resilience Act (“DORA”) has required insurers to strengthen their oversight of third-party technology providers, including through mandatory contractual, risk-management and reporting requirements. In response, InsurTech players must invest further in compliance and cyber safety tools, increasing operational costs and potentially compressing margins (EIOPA, January 2025; Morgan Lewis, June 2024)
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