A new report from Insurtech UK and Insurance DataLab offers a valuable snapshot of the current capacity market, exploring where opportunities lie and what providers are really looking for from their insurtech partners.
The research, based on a survey of underwriters, insurers, MGAs, and reinsurers, shows a positive outlook for insurtech capacity provision in 2025. More than 80% of respondents said they are likely to engage a new insurtech MGA this year, with life and health lines expected to see the greatest growth.
When it comes to underwriting authority, data access tops the list of priorities for capacity providers, followed by the level of insurance experience within the insurtech team and the uniqueness of their product proposition.
Insurtech UK chief executive Melissa Collett said: “We know from our insurtech members that access to capacity can be a key issue as they start and scale. We wanted to help our members better understand the current capacity environment and how best to navigate through to a done deal.
“It marks the beginning of our work on this important issue, from which we hope to build on the concepts explored and the contacts established to increase collaborations and capacity that will drive the insurance innovation of the future.”
Despite the optimism, the report highlights that finding capacity is still a complex and challenging process.
Ed Gaze from the Insurtech UK Advisory Panel commented: “It is a commonly held perception of insurtechs that securing capacity is both very hard and takes a long time. The survey results are encouraging as respondents demonstrate a market of underwriters keen on insurtechs and willing to invest more. After a long stretch of a hard market for capacity, we hope this means rates are easing and underwriters feel more willing to experiment.”
Insurance DataLab co-founder Matt Scott added: “The results of this survey should be encouraging – capacity is out there and carriers are actively looking to do more work with insurtechs. Indeed, three-quarters of respondents said they would recommend working with an insurtech MGA to other underwriters.
“But that doesn’t mean finding capacity is easy. It is a long and complex path, and insurtechs can help ease this pain by doing their homework and fully understanding the strengths and weaknesses of the capacity providers they want to work with. It is also important to understand how their solution fits within the provider’s existing suite of products.”
For a deeper look at the survey findings and practical advice for securing capacity, download the full report here.