Technology has revolutionised every sector, including finance observed Bahaa Abdul Hussein. The growth of fintech has led to major benefits for consumers. The insurance sector has also benefitted with fintech causing massive changes. We examine how fintech has transformed the insurance industry and the trends to look forward to in 2024.

Fintech and insurance 

The market value of fintech was 180 billion dollars in 2023 and is growing at a massive rate. Insurtech or technology in insurance was valued at 13.5 billion dollars in 2023. It is expected to grow to 39.44 billion by 2027. The features of insurtech that has led to the transformation of insurance includes:

  • The use of technology has led to streamlined processes. This has made insurance industries work more efficiently and improve their profitability. In this process, they are able to offer more value to customers.
  • A major transformation has been in payouts. Earlier, the time to make payouts was long. This led to customer dissatisfaction. Thanks to technology, payouts are now faster. Customers are happy since they can expect instant payout with faster claim processing.
  • Fraud in insurance claims and undervaluing risks were major problems that the insurance sector faced. Insurtech has brought in the power of AI to change this. AI-based systems help in better evaluation of risks. More importantly, it helps detect fraud and saves money for insurers.
  • Customers can now get policies that are tailor made for their specific needs. They can expect flexible cover including buying online at their convenience. On-demand cover is another feature that has helped in enhancing overall customer experience.
  • Embedded insurance is another innovation as a result of fintech. It allows customers to buy insurance products along with other finance products.
  • Fintech allows customers to get the full benefits of digitization. They can buy policies, check status, and make claims online. They can do it easily on their mobile phones using an app, and don’t have to worry about paperwork or standing in a queue.
  • The entry of startups have led to more innovations. The result is more valued addition for customers and improve business prospects for insurers.


Fintech has drastically changed the insurance sector ensuring a win-win situation for insurers and customers. In 2024, we can expect newer technological innovations and wider adoption of fintech by insurers. It is a trend that will benefit consumers to a great extent. Insurtech will soon be a norm throughout the insurance sector.

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