Growing Investments in Italian Insurtech, Startups Earn 31% More Than 2023

Artificial intelligence, above all, has driven growth in investments in the Insurtech sector in Italy in 2024, according to what emerges from the new edition of the Insurtech Investment Index 2024, conceived by IIA and developed by the Fintech & Insurtech Observatory of the Milan Polytechnic .

The Italian Insurtech Market

In 2024, according to the report, the level of digitalization of the Italian market remained in line with that of the previous year but made a leap in investments. In 2024, 38% of the companies analyzed made at least one investment in Insurtech startups, marking an increase compared to 31% in 2023. More significant was the increase in invested capital, which reached 38 million euros, a value ten times higher than the 3.9 million euros of the previous year.

Investments in internal innovative projects by companies also increased, totaling 375 million euros in 2024, recording an increase compared to the 44.8 million euros of 2023 . The overall number of operations also increased, rising to 145 initiatives in 2024 from 108 in 2023. The number of companies that have started at least one internal project remains stable, rising from 82% in 2023 to 85% in 2024 .

Partnerships with Insurtech projects

On the other hand, partnerships with Insurtech projects are decreasing , falling from 45 in 2023 to 38 in 2024. The percentage of companies with at least one active partnership has also decreased, settling at 38%, compared to 55% the previous year.

“This scenario suggests a phase of greater awareness: to make a real leap forward, a generic approach to innovation is no longer enough, but targeted and massive investments in skills, strategic areas and selected startups are needed” – said Filippo Renga , director of the Fintech & Insurtech Observatory of the Milan Polytechnic.

“We are therefore starting to witness a specialization of the sector, in which some companies more inclined and predisposed to innovation are creating the conditions to strengthen their competitive advantage, to the detriment of others that remain in a more exploratory phase. To put it metaphorically: some are ploughing the ground and deciding what to sow, while others have started to sow on a broader level.”

The Observatory also reports that by the end of the year the percentage of insurance companies intending to launch an internal project will see an increase, reaching 83% of the sample, while partnerships for Insurtech projects will see a further decrease (33% in 2025). Regarding business areas: for the majority of interviewees, AI will be used mainly in claims management activities (64%), followed by back office processes (55%), underwriting processes (36%) and customer management & contract administration (27%).

Investments in AI

Data from the Italian Insurtech Association predicts a doubling of investments in AI by 2025, which should reach 90 million euros, out of a total of 1.2 billion destined for innovation in the insurance sector. In 2026, the percentage of AI on total investments in technology should reach 10% (140 million euros out of 1.5 billion euros overall), a penetration that is still too low if we consider the relative simplicity with which this technology can be integrated into the value chain.

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(Featured image by moerschy via Pixabay)

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First published in StartupItalia. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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