‍How today’s startups are changing the game

‍

Insurtech used to be all about disrupting the insurance industry with shiny new technology. But a lot has changed over the past decade. Today’s insurtechs are more than tech geeks with big ideas—they are savvy problem-solvers with a deep understanding of the insurance world. These startups are proving that innovation and industry expertise go hand in hand.

‍

Here, two industry experts share insights on how the insurtech landscape has evolved, what the future holds, and how startups are now working to create lasting value:

• Kacie Conroy, Vice President of Information Technology at M3 Insurance
• Pavan Goteti, Vice President of Innovation and Business Process Management at EMC Insurance Companies

‍

What key shifts have you noticed in insurtech?

Conroy: "To sum it up in a few words, the shift is about making 'boring' processes sexy. Internal operations that were once overlooked are now recognized for their potential to streamline workflows and improve customer service. The new trend is making behind-the-scenes processes—like invoice reconciliation and policy tracking—more efficient, which leads to faster solutions and a better overall experience for customers. There’s also a greater emphasis on creating unified, seamless solutions rather than fragmented, niche offerings."

Goteti: "While there is always a strong presence of companies from major tech hubs, there is now a noticeable increase in geographic diversity, with applicants representing a wider range of U.S. cities, along with international representation – indicating a broader global reach for both BTV and insurtech innovation. Additionally, artificial intelligence (AI) is gaining traction in core insurance processes like underwriting and claims, with a growing interest in health tech, data analytics, and low-code solutions that support both carriers and brokers.”

Can you share an example of a recent insurtech solution that demonstrates a deep understanding of the insurance market?

Conroy: "Comulate is a great example. They focus on optimizing the carrier-to-broker invoicing process, particularly around invoice reconciliation. This might sound like a niche area, but it's actually a big deal. Most people don’t want to get into the weeds of financial workflows within the broker space, but Comulate saw an opportunity to streamline that process. They understood the pain points and delivered a solution that took a load off our finance teams. It was one of those moments where you think, 'Where have you been my whole life?'

Similarly, Trust Layer tackled the certificate of insurance tracking process, an area that can be cumbersome for many in the industry. With their deep understanding of how the process works, they were able to introduce new efficiencies, making it easier for everyone involved.”

Goteti: “There are so many! From the 2024 BTV cohort, Lightship Neuroscience caught my eye. Their unique solution is using neuroscience to improve road safety, particularly for commercial fleets. By assessing drivers' unique safety challenges and developing personalized training programs, Lightship’s goal is to help reduce accidents and lower insurance costs. I was also impressed with Qumis.ai’s solution aimed at claims adjusters. The platform allows adjusters to access critical policy details and legal insights – streamlining claims processing.”

How does a solid insurance background help insurtech startups?

Conroy: "A solid insurance background is crucial for insurtech startups because it helps bridge the gap between business and tech. The insurtech space is full of opportunities, but to succeed, you need someone who understands the industry to help define the problem and identify where technology can add value. You have to fully grasp the problem in order to position your solution effectively. The challenge is balancing innovation with practicality—no one wants too many tech solutions. It’s about understanding the business needs and ensuring your tech is optimized to address them.”

Goteti: “A solid insurance background provides a significant advantage, enabling them to understand the challenges faced by insurance companies, so they can develop solutions that truly address industry needs. Insurance is a heavily regulated industry, and a strong insurance background helps startups ensure their products comply with current regulations. It also enables startups to effectively communicate with insurers and build trust, which can lead to valuable partnerships and collaborations, resulting in the development of innovative solutions that drive real value.”

What advice would you give to insurtech startups aiming to make a lasting impact in the industry?

Conroy: "My advice is for insurtech startups to spend time with key industry players—brokers, carriers—and really observe how they work. Shadowing people on-site helps uncover where tech can make the biggest impact. It’s about building partnerships between business and technology to improve the client experience. 

At M3, we always make ourselves available to show how our processes work, and in turn, startups share their tech with us for feedback. This kind of collaboration helps refine both our workflows and their products. It’s about being agile, iterative, and open to new ideas—sometimes a deeper understanding of the process leads to bigger opportunities than initially imagined."

Goteti: “In my opinion, the core P&C systems segment is crowded by large solution providers, but an entire ecosystem is thriving around these large solution providers to support and solve for edge cases or specialized components that will continue to provide immense value to the P&C industry overall. Essentially, finding the right problems to solve for holds the key to making a lasting impact on the industry.

If you are following funding patterns, the policy administration segment saw some decline in funding in recent years, but claims-related innovative solutions are holding steady. Some areas that continue to be of interest are climate risk resilience, claims experience, predictive analytics, and process efficiencies. Additionally, I cannot underplay the importance of assembling a team with a deep insurance background, combined with technical expertise and sales acumen, to have the most impact.”

How do you see the insurtech space continuing to evolve over the next 5-10 years?

Conroy: “There is a lot of buzz around Agentic AI, which is essentially robotic process automation (RPA) on steroids. RPA has already helped automate a lot of processes, but Agentic AI takes it further by enabling technology to make more independent decisions, rather than following a strictly linear process. I think this will dominate the space for the next 5 to 10 years. It's still early, but we’ve seen this before—like with the dot-com boom. People speculated on it, but now everything is web-based. I believe there’s something real here, and while there will be lessons learned along the way, I don’t think this trend is going away anytime soon."

Goteti: “I wish I had a crystal ball to predict the future that far out. But lucky for us, we have partners like CB Insights, which constantly monitors insurtech growth, investment trends, and M&A activity. The general outlook for insurtechs for the next few years is looking positive, mostly driven by adoption of AI. Most insurtechs are at the cutting edge of adopting technologies such as generative AI, where the rest of the industry is still catching on.

I also suspect that we will see some strategic partnerships and consolidations within the insurtech space to provide a menu of services that are complementary to one another. And I predict we will see a lot of insurtech activity expanding globally. For example: The Israeli insurtech ecosystem is currently 240 insurtechs strong, and growing.”

<conclusion>

Modern insurtechs are no longer about innovation for its own sake. They’ve grown to understand the intricacies of the insurance world. As Conroy points out, “When an insurtech team truly understands the business and is driven to optimize every aspect, that’s when the magic happens. These solutions go beyond being 'nice to have' — they address real-world problems and create value for everyone involved.”

‍

Today’s insurtechs are now seen as vital partners, rather than disruptors. Their ability to integrate into the insurance value chain is transforming the industry. Goteti sums it up, “The diversity and sophistication within the insurtech space keeps growing, and I’m eager to see the innovations the 2025 cohort will bring. The future is bright, and the possibilities are endless.”

‍