InsurTech: a sector in long‑term transformation

At Fortino, we believe in a sector‑driven approach to investing in B2B software. Over the past months, we have taken a deep dive into InsurTech, mapping the landscape, engaging with operators and domain experts, and analysing where structural opportunities are emerging. What we see:

Cloud & Core Modernisation

Legacy system replacement and cloud migration are accelerating. This is driving 14%+ CAGR in P&C insurance IT spend, outpacing overall industry growth.

AI

AI adoption is accelerating across the entire insurance value chain, unlocking major efficiency gains. AI is already automating claims management and customer interactions, with use cases in underwriting support. Once fully operationalised, AI can drive 10–20× productivity improvements and fuel technology investment across the insurance value chain.

Regulatory Pressure

New regulatory frameworks such as DORA (2025) and the EU AI Act (2026) are raising the compliance bar. This favours configurable, transparent, and audit‑ready platforms.

Embedded & Ecosystem Distribution

API‑first, low‑code and no‑code modules are enabling carriers and brokers to integrate insurance into digital ecosystems- from mobility to travel to health-opening new growth and distribution channels.

InsurTech 3.0

Beyond efficiency gains, we see the rise of AI‑driven personalisation, new product lines such as cyber and parametric insurance, multi‑channel distribution, and shared data ecosystems. Together, these trends are transforming how insurance is built and delivered.

InsurTech software is still early in a multi‑decade modernisation cycle

If you are operating in this space or would like to exchange views on where the market is heading, we would be happy to connect.