Artificial intelligence has “moved from experiment to infrastructure”, a survey by Insurtech Australia suggests.

About 42% of insurtechs say AI is now fully integrated into their businesses, up from 10% two years ago, and 57% use autonomous agents and chatbots, up from 27% in 2024.

“The Australian insurtech sector has crossed a threshold. AI is now part of how our members operate every day,” Insurtech Australia CEO Simone Dossetor said.

“The conversation has moved from whether it works to how quickly business models and teams can adapt to the accelerating pace of change.”

The survey also found 57% of Insurtech Australia members were self-funded at their most recent rounds, and venture capital involvement fell to just 17% of members.

“Our members are building more AI-mature businesses than ever, and our focus is on connecting them with the insurers, investors and international markets that will help them scale. When these relationships work, they are transformational for the industry,” Ms Dossetor said.

A separate IA survey of agencies, brokers and reinsurers found autonomous agents and chatbots are now used by 76%, up from 50% last year.

The insurance partner survey also found only 20% call AI fully integrated, against 42% of Insurtech Australia members. More than half apply AI in underwriting/pricing and claims, and 48% have created new AI and data roles.

On Thursday, Insurtech Australia will launch a guide to creating effective partnerships called Building Bridges: How Insurtechs and Insurers Can Work Better Together.

“With securing customers and partnerships the top two challenges for insurtechs for the fifth year running, the guide sets out what each side needs from the other to make partnerships work,” the organisation said.