InsureTech 3.0
After more than a decade of digitization, we’re entering a new chapter: InsureTech 3.0.
This new wave isn’t about slick mobile apps or yet another quoting tool. It’s about building intelligent, composable, and ecosystem-ready infrastructure that allows insurance to be embedded, orchestrated, and optimized in real time.
So, how did we get here—and what does it mean for the future of insurance?
The Three Phases of InsurTech:
InsureTech 1.0: The Disruptors
The first wave of InsurTech sought to replace agents and carriers with sleek, digital-first products. Brands like Lemonade, Oscar, and Metromile promised instant quotes, transparent pricing, and behavioral underwriting.
The downside? Many underestimated the complexity of insurance distribution, customer acquisition costs, and risk pricing. Loss ratios rose, and profitability proved elusive.
InsureTech 2.0: The Enablers
Realizing that collaboration was more scalable than disruption, the next generation of InsurTech startups built tools for agents, brokers, MGAs, and carriers. Platforms like Tarmika, Indio, and Herald helped digitize submission workflows, enrich underwriting data, and enable quoting APIs.
But the value chain still relied heavily on manual intake, disconnected systems, and inefficient routing.
What Is InsureTech 3.0?
InsureTech 3.0 is the current phase—one centered on intelligence, orchestration, and composability. It shifts the industry’s focus from simply digitizing processes to optimizing outcomes.
Four Defining Traits of InsureTech 3.0
Embedded Insurance Distribution
Insurance is increasingly offered at the point of need: in checkout flows, onboarding platforms, or supply chain systems. It’s no longer something customers go get—it’s something that comes to them.AI-Native Infrastructure
AI is no longer an add-on. Today’s platforms use machine learning and generative AI to triage submissions, generate underwriting insights, summarize risk memos, and streamline broker workflows.Composable & Interoperable Architecture
InsureTech 3.0 tools are built to integrate with CRMs, AMSs, carrier systems, and third-party data providers. Open APIs and webhooks—not static PDFs or portals—are the backbone.Risk-Centric Operating Models
Platforms are moving away from policy-focused workflows to dynamic risk management. Real-time signals—from telematics to IoT to business operations—are informing both pricing and coverage in real time.
Leading Examples of InsureTech 3.0
Several platforms are pioneering the shift toward this next generation:
Coalition – Combines cyber insurance with active risk monitoring and breach prevention tools.
CoverForce – Powers API-driven, embedded quoting across multiple commercial lines.
TrustLayer – Automates insurance verification for B2B relationships and contract compliance.
Zensurance – Offers embedded SMB insurance solutions for marketplaces and platforms.
Incline P&C Group – Uses analytics-first MGA infrastructure to help partners launch programs quickly.
PolicyBound – Empowers brokers, wholesalers, and MGAs to build dynamic submission experiences and route intelligently across both analog and API-enabled carriers.
These companies reflect the shift from fragmented tools to platforms that orchestrate risk, data, and distribution together.
Why It Matters
InsureTech 3.0 has broad implications across the industry.
For Brokers
Move beyond static forms and portals
Automate triage, appetite matching, and carrier routing
Offer embedded insurance to partners and vertical platforms
For Carriers
Expose quoting and binding via modular APIs
Access previously unseen submissions and data-rich intake
Underwrite with real-time risk signals and AI-assistance
For MGAs & Wholesalers
Launch products faster with flexible intake flows
Serve both embedded and traditional distribution channels
Standardize and enrich submissions to increase quote-to-bind ratios
Driving Forces Behind the Shift
Several key trends are accelerating the rise of InsureTech 3.0:
VC Realignment – Capital is shifting from pure growth to sustainable, scalable infrastructure plays.
Customer Demand – Buyers want fast, embedded, and personalized coverage experiences.
Carrier Innovation – Insurers are embracing modern APIs, AI tools, and ecosystem thinking.
Regulatory Progress – States are creating sandboxes and modernizing approval processes to accommodate dynamic insurance products.
The Road Ahead
In the coming years, we’ll likely see:
AI-native MGAs that handle risk selection with minimal human intervention
Insurance platforms embedded into non-insurance ecosystems (payments, payroll, logistics, etc.)
Brokers operating as technology-enabled orchestrators, not just intermediaries
Real-time underwriting powered by live operational and behavioral data
The shift won’t be driven by marketing or branding. It will be driven by platforms that reduce friction, unlock data, and enable smarter risk decisions.
The Takeaway
InsureTech 3.0 isn’t a trend—it’s a turning point.
The industry is moving from digitization to intelligence, from siloed portals to orchestrated ecosystems. Platforms like Coalition, CoverForce, PolicyBound, and others are showing what it looks like to build infrastructure that adapts to the complexity of insurance, rather than forcing the industry to conform to static tools.
Those who embrace this mindset—carriers, brokers, and startups alike—will be the ones who define the next decade of insurance.
