AI insurtech startups find functions to improve: Accenture

Increased funding for AI insurtech startups may mean a shorter runway for success, but insurance is still an attractive market for tech startups, according to Kenneth Saldanha, CEO and advisory lead of the insurance practice at Accenture. These AI insurtechs are focusing on certain functions, as Saldanha wrote in a response to questions.

What's driving investment in AI insurtechs recently?

Insurance remains an attractive market for AI investment and innovation because there are still large value pools tied up in traditional, manual processes, plus significant data and information flows across the value chain.

The market is moving beyond general AI hype toward practical tools that address persistent pain points in underwriting, claims, distribution and customer service.

Any common characteristics of the AI insurtechs attracting funding?

A common thread is ingestion and summarization – e.g. using AI to process large volumes of submissions, documents, claims information and customer data more efficiently.
Many are focused on specific workflow improvements rather than broad horizontal AI platforms.

The strongest propositions seem to be those that can slot into areas where insurers already face operational friction, such as submission handling, quote preparation, FNOL (first notice of loss), claims service and contact center support.

Which AI use cases appear to be gaining the most traction?

• Commercial lines underwriting, particularly submission intake and submission-to-quote workflows.
• Claims and FNOL (first notice of loss), where AI can help accelerate intake, summarisation and routing.
• Personal lines service and claims experience.
• Contact centre agent assist, including internal support and customer interactions.
• Back office functions, including technology and finance.