Middle East and Africa Insurtech Market Outlook, 2030

The Middle East and Africa (MEA) Insurtech market is rapidly evolving, driven by the region’s ongoing digital transformation, increasing mobile and internet penetration, and a young, urbanizing population that is progressively adopting digital financial services. The market demand is primarily fueled by a rising middle class seeking accessible, affordable, and personalized insurance products, along with the growing need for efficiency and innovation within traditional insurance companies.

In countries such as the United Arab Emirates, Saudi Arabia, South Africa, Kenya, and Nigeria, there has been a noticeable shift towards digital insurance platforms offering auto, health, travel, and microinsurance products tailored to underserved or uninsured populations. From a promotional standpoint, marketing strategies in the MEA Insurtech space have heavily leveraged social media, influencer-led campaigns, and mobile-based advertising to reach younger audiences. Many startups are adopting gamified engagement strategies, referral-based campaigns, and partnerships with telecom and fintech providers to enhance reach and customer acquisition.

Companies are also exploring collaborations with local banks, e-commerce platforms, and ride-hailing services to integrate insurance products seamlessly into digital ecosystems. A notable fact is that mobile money platforms like M-Pesa in Kenya have been instrumental in enabling insurance services to reach remote populations, with bundled products for life, health, and crop insurance becoming increasingly common.

Meanwhile, in the Middle East, Takaful (Islamic insurance) is seeing digital transformation to cater to Shariah-compliant consumers. For example, the Dubai Financial Services Authority (DFSA) and the Saudi Central Bank (SAMA) have launched regulatory sandboxes to encourage experimentation in digital insurance. In Africa, regulatory support varies by country, with South Africa and Kenya offering relatively more advanced frameworks compared to others.

According to the research report "Middle East and Africa InsurTech Market Outlook, 2030," the Middle East and Africa InsurTech market was valued at more than USD 1.06 Billion in 2024. The primary factors driving this growth are the region’s rapid digitalization, supported by increasing smartphone and internet penetration. In Africa, mobile penetration has surpassed 85%, with many individuals accessing digital financial services for the first time through mobile devices. This trend has enabled the widespread adoption of digital insurance products, particularly microinsurance offerings that provide coverage for life, health, agriculture, and personal accidents at low premiums.

In the Middle East, countries like the UAE, Saudi Arabia, and Egypt are experiencing increased demand for online insurance platforms and digital claims management systems, as consumers shift toward convenience-driven and contactless services in the post-pandemic era. Blockchain is also gaining traction for improving trust and security in transactions, especially in markets with weaker traditional financial infrastructures. The evolving regulatory landscape is another critical enabler. In 2023 alone, several African Insurtech startups secured multi-million-dollar seed and Series A investments, signaling growing investor confidence in the scalability of these business models.

Supporting events such as the Africa Insurtech Summit, Fintech Abu Dhabi, and Seamless Middle East are creating vital networking and knowledge-sharing platforms that stimulate innovation and cross-border collaboration. Interestingly, the integration of Insurtech with other sectors like agriculture and logistics is also opening up new avenues for bundled insurance solutions. For example, crop insurance powered by satellite data and distributed via mobile wallets is transforming risk mitigation for farmers in East Africa.

Market Drivers

• Growing Smartphone Penetration and Digital Payments Infrastructure: One of the primary drivers of the MEA InsurTech market is the rapid adoption of smartphones and the expansion of digital payment systems. In regions such as the Gulf Cooperation Council (GCC), Kenya, Nigeria, and South Africa, a growing portion of the population is now connected via mobile devices. This mobile-first behavior is enabling the rise of digital insurance solutions that bypass traditional agents and paperwork. Mobile money platforms like M-Pesa in East Africa are proving especially crucial, allowing users to pay premiums and receive claims directly via their phones. This ecosystem is fostering the growth of microinsurance products, allowing insurers and startups to reach previously underserved populations with affordable and accessible policies.
• Government-Backed Financial Inclusion and Health Initiatives: Many MEA countries are actively promoting financial inclusion and expanding access to healthcare, both of which are catalyzing InsurTech growth. Governments in countries like the UAE, Saudi Arabia, Egypt, and Kenya have introduced reforms and digital strategies to increase insurance coverage and enhance financial access. For instance, initiatives to digitize health insurance schemes and integrate them with national ID programs are opening new opportunities for InsurTech players. Moreover, regulatory bodies are starting to adopt sandbox frameworks that enable innovation under controlled environments, encouraging tech-driven insurance startups to experiment with new models tailored to the unique needs of local markets.

Market Challenges

• Regulatory Fragmentation and Lack of Innovation-Friendly Policies: A major hurdle for InsurTech development in the MEA region is the lack of harmonized and innovation-friendly regulatory frameworks. While some countries, like the UAE and South Africa, have made strides in developing digital-friendly insurance regulations, many others still operate under outdated laws that don’t accommodate online underwriting, automated claims, or digital-only insurers. The regulatory landscape is highly fragmented, with significant differences across jurisdictions in licensing, compliance, and consumer protection standards. This inconsistency not only creates legal complexity but also slows cross-border scalability and investor confidence.
• Low Insurance Penetration and Public Awareness: Despite growing digital access, the overall insurance penetration in most MEA countries remains among the lowest in the world. In many parts of Sub-Saharan Africa and the Middle East, a large portion of the population either lacks awareness about insurance or perceives it as unaffordable and unnecessary. Cultural mistrust in financial services and low levels of financial literacy exacerbate the problem. For InsurTechs, this means significant challenges in building brand trust, educating customers, and creating demand - especially among rural and informal economy workers. These barriers often require intensive awareness campaigns and partnerships with community organizations, which can be costly and time-consuming.

Market Trends

• Rise of Microinsurance and Pay-As-You-Go Models: The MEA region is seeing a rapid emergence of microinsurance and pay-as-you-go insurance products tailored to low-income populations and gig workers. These models, supported by mobile payments and digital platforms, provide coverage for health, crop failure, life, and even funeral expenses at very low premiums. In countries like Kenya and Nigeria, startups are offering insurance services through telco partnerships, bundling premiums with mobile airtime or utilities. This trend is reshaping the traditional insurance value chain by offering scalable, low-cost, and flexible solutions that meet the needs of the informal and rural sectors.
• Use of AI and Telematics in Auto and Health Insurance: Artificial Intelligence (AI), machine learning, and telematics technologies are becoming increasingly prominent in the MEA InsurTech landscape. Auto insurers are beginning to use telematics data to offer usage-based insurance (UBI) that rewards safe driving, especially in markets like South Africa and the UAE. At the same time, AI-driven tools are being deployed to automate claims processing, detect fraud, and personalize health insurance plans based on user behavior and wearable data. These innovations are not only improving customer experience but also helping insurers reduce costs and increase operational efficiency, setting the foundation for future growth across the region.

Auto insurtech is leading in the MEA insurtech industry due to the rising demand for motor insurance, increasing vehicle ownership, and the adoption of digital technologies to streamline claims, underwriting, and customer engagement processes.

The auto insurtech segment is gaining dominance in the Middle East and Africa (MEA) insurtech industry primarily because of the region’s rapid increase in vehicle ownership, evolving regulatory requirements for motor insurance, and the urgent need for digital transformation in traditional insurance operations. As urbanization accelerates and incomes rise across countries like the UAE, Saudi Arabia, Egypt, Nigeria, and South Africa, more individuals and businesses are purchasing vehicles, both for personal and commercial use. This surge has directly expanded the demand for auto insurance. Moreover, governments in several MEA countries have implemented mandatory motor insurance laws, further fueling growth in the auto insurance sector.

However, traditional insurers have often struggled with inefficiencies, delayed claim processing, and limited transparency gaps that insurtech startups have quickly moved to fill using digital innovation. Auto insurtech platforms in the MEA region are leveraging AI-driven tools, telematics, and mobile-first applications to offer quick policy quotes, real-time driving data analysis, automated claim assessments, and seamless customer experiences. By digitizing and automating underwriting and claims management, these platforms are reducing fraud, enhancing customer satisfaction, and improving profitability.

For example, telematics-based insurance is gaining traction in the Gulf countries, enabling usage-based insurance (UBI) models that align premiums with driving behavior an especially appealing proposition in markets with younger, tech-savvy demographics. Additionally, insurtech players are collaborating with ride-hailing services and delivery fleets, providing tailored policies and fleet management tools, which further contribute to market leadership in the auto insurance segment.

Fraud Detection and Prevention applications are moderately growing in the MEA insurtech industry due to increasing digital adoption in insurance services, which has exposed insurers to higher fraud risks, prompting a gradual shift toward advanced analytics and AI-driven fraud mitigation tools.

The moderate growth of Fraud Detection and Prevention applications in the Middle East and Africa (MEA) insurtech industry is largely driven by the region’s accelerating digitalization in the insurance sector, which, while streamlining operations and enhancing customer experience, has also increased exposure to various forms of digital fraud. As more insurers and insurtech firms adopt online platforms for policy issuance, premium payments, and claims processing, opportunities for fraudulent activities such as identity theft, false claims, and synthetic fraud have grown significantly.

However, while the awareness of fraud-related losses is rising, the adoption of advanced fraud detection systems is still in its developing phase, leading to a moderate rather than rapid growth trajectory. Insurers in MEA are beginning to realize the financial and reputational impact of undetected fraud and are slowly investing in fraud prevention technologies that utilize artificial intelligence (AI), machine learning (ML), and predictive analytics. These solutions can analyze vast volumes of claims data in real-time, identify suspicious patterns, and flag potentially fraudulent transactions for review.

Countries like the UAE and South Africa are leading this transformation, driven by regulatory encouragement and high levels of digital literacy. Moreover, as insurance products move online, customers demand more transparency and trust, pushing insurers to adopt fraud prevention systems to reinforce their credibility. Many insurers in the MEA region, especially in sub-Saharan Africa, still operate with legacy systems and lack the IT infrastructure required to integrate advanced fraud detection tools.

The Internet of Things (IoT) is the fastest growing technology in the MEA insurtech industry due to its transformative ability to provide real-time data for risk assessment, claims management, and personalized insurance products, especially in auto, health, and property insurance sectors.

The Internet of Things (IoT) is experiencing the fastest growth among technology types in the Middle East and Africa (MEA) insurtech industry, fueled by its powerful capability to deliver real-time, actionable data that enhances risk management, claims processing, and customer engagement. In a region where the insurance sector is undergoing rapid digital transformation, IoT technologies are enabling insurers to shift from reactive to proactive models of service delivery. In the auto insurance space, for example, telematics devices and connected car sensors are being increasingly used to monitor driving behavior, mileage, and vehicle health.

This allows insurers to develop usage-based insurance (UBI) products, which align premiums with actual driver risk, creating more accurate underwriting and boosting customer trust. Countries like the UAE and South Africa are leading the way in adopting vehicle telematics, with partnerships forming between insurers and telecom or mobility firms to scale connected car solutions. Similarly, in health insurance, the proliferation of wearable devices is providing insurers with real-time health metrics such as heart rate, physical activity, and sleep patterns - which are instrumental in offering personalized wellness programs and dynamic premium pricing.

These data-driven models are particularly appealing to the region's growing young, tech-savvy population, who demand more transparency and personalization in financial services. Moreover, in the property insurance segment, smart sensors are being integrated into homes and commercial buildings to detect fire, water leaks, and break-ins, reducing claim occurrences and helping insurers provide quicker responses when incidents do occur.

Support & Maintenance services are moderately growing in the MEA insurtech industry due to the increasing reliance on digital insurance platforms, which require ongoing technical upkeep, system integration, and user support to ensure seamless operations in a region still transitioning from legacy systems.

The moderate growth of Support & Maintenance services in the MEA insurtech industry is largely driven by the region’s accelerating shift toward digital insurance ecosystems, which necessitates sustained technical support, system updates, and operational reliability. As insurers across the Middle East and Africa adopt insurtech platforms to digitize underwriting, claims processing, customer service, and analytics, the need for continuous support to manage these systems is becoming increasingly important.

However, because much of the region is still transitioning from traditional, paper-based processes and outdated legacy infrastructure, the adoption of advanced maintenance services is happening at a steady, but not rapid, pace leading to moderate growth overall. Support & Maintenance services encompass a broad range of functions including software updates, bug fixing, cloud infrastructure monitoring, API management, cybersecurity patching, and user training. For insurers deploying SaaS-based solutions, mobile apps, or integrated CRM systems, these services are vital to maintaining uptime, securing sensitive customer data, and ensuring regulatory compliance.

In countries like the UAE, Saudi Arabia, and South Africa where insurtech adoption is more mature demand for professional support services is higher, especially to handle complex IT environments and ensure customer-facing platforms run smoothly. This includes 24/7 technical assistance, issue resolution, and performance monitoring that insurtech vendors provide to insurers aiming to deliver uninterrupted digital services. Yet, several constraints keep the growth moderate rather than exponential. Many smaller insurance firms and local carriers across emerging African markets still operate on limited IT budgets, making them cautious about investing in full-scale support contracts.

Insureds are the fastest growing end-user type in the MEA insurtech industry due to the surge in mobile and internet penetration, rising financial literacy, and growing consumer demand for accessible, affordable, and personalized digital insurance solutions.

The “Insureds” segment is witnessing the fastest growth among end-user types in the Middle East and Africa (MEA) insurtech industry, driven by a confluence of demographic, technological, and socioeconomic factors that are reshaping how individuals interact with insurance. One of the most significant contributors to this growth is the rapid rise in smartphone and internet penetration across the region, particularly in countries like Kenya, Nigeria, South Africa, Egypt, and the Gulf Cooperation Council (GCC) states.

As more people gain access to mobile devices and online platforms, they are increasingly turning to digital channels to explore, compare, and purchase insurance products something previously constrained by low insurance awareness and limited physical infrastructure. Insurtech firms are capitalizing on this by offering intuitive mobile apps, user-friendly web platforms, and embedded insurance through fintech and e-commerce channels, making it easier for insured individuals to enroll in policies, manage coverage, and file claims without intermediaries.

Simultaneously, rising financial literacy and increased public awareness of risk partly driven by events such as the COVID-19 pandemic and climate-related disasters have underscored the importance of health, life, auto, and micro-insurance among individuals who were previously uninsured or underinsured. Consumers are now more conscious of the need for financial protection and are seeking solutions that are affordable, personalized, and transparent.

Insurtech companies are meeting these expectations by offering pay-as-you-go models, usage-based insurance, and AI-driven personalized recommendations, which appeal especially to younger, tech-savvy urban populations. Additionally, embedded insurance models often linked to digital wallets, ride-hailing apps, or e-commerce platforms, are bringing first-time users into the insurance fold in a seamless and low-friction manner.

South Africa is leading the MEA insurtech industry due to its advanced financial services infrastructure, high mobile penetration, and a growing need for inclusive, tech-driven insurance solutions across a diverse population.

South Africa has established itself as the leader in the Middle East and Africa (MEA) insurtech industry, largely driven by a combination of a well-developed financial and insurance sector, strong digital connectivity, and increasing demand for accessible and affordable insurance products. The country boasts one of the most mature insurance markets in Africa, with a robust regulatory framework and a deep-rooted culture of insurance usage among both individuals and businesses. This maturity has laid a strong foundation for digital innovation in insurance, as traditional players seek to modernize outdated systems and engage a broader segment of the population.

At the same time, South Africa’s high mobile phone penetration especially smartphones has opened the door for insurtech startups to deliver innovative, mobile-first insurance services, including app-based policy management, usage-based premiums, digital claims processing, and microinsurance products that cater to lower-income and underserved communities.

The South African government and regulatory bodies, particularly the Financial Sector Conduct Authority (FSCA), have shown a growing commitment to enabling financial technology, including insurance innovation. Regulatory initiatives and sandbox environments are providing a supportive space for startups to test and deploy disruptive models while maintaining consumer protection.

The country’s vibrant fintech ecosystem, anchored in cities like Johannesburg and Cape Town, has encouraged collaboration between traditional insurers, tech startups, and mobile network operators to expand the reach and functionality of insurance offerings. These partnerships have given rise to inclusive products that are affordable, flexible, and designed to meet the needs of diverse market segments from informal workers to small businesses and gig economy participants.

Considered in this report

• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report

• Insurtech Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type

• Auto
• Business
• Health
• Home
• Specialty
• Travel
• Others

By Service

• Consulting
• Support & Maintenance
• Managed Services

By End-User

• Insurance Companies
• Brokers and Agents
• Third-Party Administrators
• Insureds

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to this industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.