let's talk
🚀 Home Blog

7 Brilliant Insurance App Ideas for Startups to Launch in 2024

Andrey Blond

Andrey Blond

Head of Sales

8 min

The insurance industry is ripe for disruption by new app ideas that make getting coverage easier and more customized. 

In this blog post, we’ll look at some promising opportunities for startups and entrepreneurs in insurtech.

We’ll cover:

  • What’s driving growth and interest in new insurance apps right now
  • The types of insurance app ideas that are hot with investors
  • 7 specific app concepts that could be big winners in the next few years
  • Key factors to consider if you want to build your own insurtech product

Let’s check out what makes insurtech such an exciting field today!

Why Launch a New Insurance App Now?

Many startups partner with a mobile app development company to create an InsurTech application because of an:

  • Increase in global market size,
  • Investments from venture capitalists into insurance-based startups,
  • And an increase in the usage rate.

Let’s discuss each reason.

1. Growth in the Insurance Industry

Numerous growth statistics from the InsurTech space suggest that owning an app is a risky but justified move. Here are some:

  • The global InsurTech market is expected to grow at a CAGR of 32.7% from 2021 to 2030;
  • The revenue forecast for the InsurTech sector is expected to grow from $5.48 billion in 2019 to $10.14 billion in 2025;
  • Premiums paid to insurance companies exceeded $4.9 trillion in 2017;
  • The global InsurTech market for mobile phones is expected to grow at a CAGR of 12.6% from 2021 to 2028.
This picture describes one of the reasons for launching a new insurance app is growth in the insurance sector

2. Venture Capital Interest

Below are some statistics suggesting that numerous InsurTech firms are getting funded, irrespective of the country where they’re domiciled:

This picture describes the second of the reasons for the launch of the new insurance app is the growth of venture capital investment

3. Increasing Usage Rates

The demand from users is another reason to own an InsurTech product. Here are some statistics that align with this point:

  • Health insurance app installation on mobile devices rose by 36% in January 2021 alone;
  • Mobile application downloads of digital-only InsurTech platforms grew by 461% over the past three years;
  • 42% of Europe-based healthcare insurers have an effective app;
  • The percentage of motorists with an auto insurance policy in the United States has been on the increase since 1992.

The three set statistics above show that the insurance technology market is overgrowing, and VCs are also ready to fund startups in this industry.

This picture describes the last of the reasons for launching a new insurance app is the speed of using the app

Let’s move on to a review of the best insurance app ideas.

7 Hot Insurance App Ideas for 2024

These ideas overview results from market and trend analysis and venture capitalists’ feedback.

You’ll find a description, demand analysis, key insights, and examples for each app idea.

Let’s take a closer look at each of them.

1. Streamline the User Experience

This idea may seem somewhat “trivial” to you. Perhaps it is.

However, this does not change the fact that a user-friendly product is still better than just a product.

So let’s start with that and then move on to more specific things.

A user-friendly InsurTech product makes it easy for users to purchase premiums, make monthly payments, cancel coverage, and perform other in-app features on the go.

An average user should be able to decode what each button stands for and achieve the desired activity without requesting help.

Let’s consider some critical insights to having a User Experience-focused app:

Factors to Consider Description
Demand The customer experience of an app is crucial to having the platform thrive. Here are statistics supporting that:

  • 53% of potential customers will close the app if it takes more than three seconds to load;
  • 90% of users will stop using an app if it lacks a good user experience;
  • 67% of visitors are likely to purchase your insurance policy if it’s mobile-friendly;
  • 57% of consumers won’t recommend a mobile app that lacks a good user experience.
Key Insights The needs of your target users should be the focus of your app. Every UI element, feature, and onboarding process should cater to their needs.

If you’re not aware of their needs, then begin by asking the following questions: Why should they use your app? What problem does your app solve? Use these answers to map your development workflow.

Take life insurance apps, for example. People use it to provide financial security for loved ones in their demise. Centering your app experience around this helps to keep users happy and engaged.

Generic UX enabling features that should be in your app are:

  • An intuitive interface,
  • Chat support,
  • A search option,
  • Gamification,
  • Claim tracking,
  • Chatbots.

Insurance broker apps should have a documents library, an in-app broker’s calendar, and other helpful features.

Also, ensure your app is accessible to all smartphones.

Example Here are some user-friendly apps:

Another top-notch app idea to consider is a car insurance app for delivery drivers.

Illustration shows an idea for an insurance app that means to make insurance more convenient and understandable

Let’s describe what this entails.

2. Car Delivery Insurance

This insurance service protects drivers from accidents and unforeseen losses when using their vehicles for delivery purposes.

The coverage is only active within the period where you’re moving from one location to the other, intending to make a delivery.

Below are some facts about this idea.

Factors to Consider Description
Demand The basis for growth in-car delivery insurance is due to the rise in the patronage of delivery services. Here are some statistics on the industry:

Key Insights To create a car insurance application that stands out, combine AI automation & algorithms, with motion sensors and Geolocation APIs.

These features help your app analyze driving behaviors, therefore helping you customize premiums per policyholder.

You can also offer ads-on travel insurance policy for inter-state deliveries.

Example Common examples of car delivery insurance apps are:

The illustration shows an insurance app idea that means car delivery insurance

3. Peer-to-Peer Insurance

P2P Insurance, also regarded as social insurance, is a risk-sharing network of people, where all group members set some funds aside to insure against a risk.

It offers users the added benefit of keeping premiums where no claim is paid.

Below are some key points and examples of P2P insurance.

Factors to Consider Description
Demand The market readiness for P2P is huge, and statistics from multiple organizations depict that. Here are some:

Key Insights P2P insurance is not a novel concept but a technological adoption of model mutual insurance.

P2P insurance apps increase the speed and ease with which consumers purchase premiums.

For example, Lemonade, a P2P InsurTech platform, helps users get premium quotes in less than 3 mins.

If you want to create an insurance app, you’ll need the following features:

  • Digital wallet,
  • Push notification,
  • Insurance providers page,
  • Recipient page,
  • Electronic ID storage.

You can include other functionality that suits the intricacy of your idea.

Example Some examples of P2P apps are:

This picture describes an idea for a mobile app in Insurance, which means P2P insurance

4. Microinsurance

Microinsurance entails offering insurance premiums for low-income individuals against numerous perils in exchange for cheap premiums per their income and risks.

Below are some points to note.

Factors to Consider Description
Demand These statistics show that having this insurance plan can be a profitable move:

  • 500 million risks worldwide are covered by micro insurance plans, up from 139 million in 2009;
  • The microinsurance market is expected to grow at a CAGR of 13.5% from 2022 to 2026;
  • Experts expect the insurance industry to be worth  $111.8 billion in 2026, from a current value of $79 billion.
Key Insights Microinsurance functions on the basis of the concept of risk pooling.

Designing a solution according to this concept is not an easy task. You will need to develop customized insurance policies that suit your target users.

You need data collection and analytics capabilities as well as a long-term marketing plan. You can also offer a free in-app consultation to properly convince potential customers.

It’s best to combine this idea with P2P and other cost-effective insurance models to achieve an optimal customer experience.

Example Common examples of microinsurance apps are:

  • Crop Insurance,
  • Yas,
  • IFE,
  • Cover link.
This picture describes an idea of InsurTech mobile app, which means microinsurance

5. Blockchain-Based Insurance

Blockchain-based insurance platforms offer coverage via InsurTech apps where claims submission, payment, and data protection are automated on the blockchain network.

Let’s provide you with some insight into this idea.

Factors to Consider Description
Demand Just like other sectors, there’s a high demand for blockchain in insurance.

Here are some statistics that prove this:

  • Blockchain in InsurTech is poised to be worth over $1.3 billion in 2024, from $60.4million in 2018.
  • Blockchain in the insurance market is estimated to grow at a CAGR of 84.9% in the next three years.
Key Insights Blockchain improves efficiency, transparency, and security in the insurance sector.

It also eliminates certain data-gathering practices by insurance agents.

Distributed Ledger Technology helps InsurTech platforms to boost cybersecurity protocols, speed payment time, and streamline insurance claims processing.

It’s important to use a knowledgeable software development company as blockchain implementation is very technical.

Example Common examples of apps in this niche are:

  • ISLEY,
  • Crop Insurance
The illustration shows an idea for an insurance application, which means blockchain-based insurance

6. Pay-as-You-Go Insurance

This is also called pay-per-mile insurance. Here, Insurance companies charge per mile or hour driven. They also require policyholders to pay a very small amount to cover against theft or damage when the car is parked. Users can change or cancel the policy at a prompt.

Factors to Consider Description
Demand PAYG insurance services are in high demand, and statistics can prove that:

Key Insights This type of insurance falls uses telematics to track driving behavior and uses their risk level to determine pricing on premiums.

It’s particularly suited to low-income risk-free earners as it offers them low premiums.

Examples Examples of PAYG InsurTech apps are:

  • Marmalade,
  • Cuvva,
  • Zego,
  • insurethebox.
Illustration shows an mobile app in insurance idea, which means pay-as-you-go insurance

7. Cybersecurity Insurance

Cybersecurity insurance is a type of policy that an individual can purchase to reduce judgment liability that’s attached to doing business online.

By paying premiums at the stipulated time, the individual transfers some of the risks to the insurance service provider.

Factors to Consider Description
Demand Although cybersecurity coverage is a new InsurTech niche, the demand for the service has been very strong.

Here are some statistics that prove that:

Key Insights Ransomware happens every eight minutes. Thus, it’s imperative to appropriately access ransomware risks before billing prospective clients.

A major challenge with cyber insurance is that underwriters have little data to calculate premiums and risk models.

Little research has been done into gathering real-time data on cybersecurity risks.

Except for the use of technologies like IoT, and AI in lead capture and analysis,

Example Successful platforms to take a cue from are:

  • BitSight,
  • Kovrr,
  • elphasecure,
  • Cybercube
This picture describes an idea for an insurance app that means cybersecurity insurance

Ready to Build Your InsurTech Product?

There’s no shortage of promising insurance app ideas worth pursuing in the years ahead. From microinsurance to pay-as-you-go models, investors are pumped about the potential in insurtech.

If you want to capitalize on this opportunity with your own insurance app, the team at SpdLoad can help. We’re experts in building, launching, and scaling digital products.

Whether you need an MVP to validate your concept or want to add advanced features like AI down the line, we’ve got you covered. Our agile approach means we can get your app to market quickly and adjust as needed based on real customer feedback.

Contact us today to discuss your insurance app idea. We’ll assess your concept, provide advice to maximize success and give you a personalized quote for the build.

Recommended posts

Top 10 IT Outsourcing Companies in 2024

Top 10 IT Outsourcing Companies in 2024

While every business requires IT services to stay competitive, not every business can or is willing to build an extensive in-house tech…

read more
How to Create Your Own Music App: A Step-by-Step Guide

How to Create Your Own Music App: A Step-by-Step Guide

Music is more accessible than ever, thanks to mobile apps. Whether commuting, exercising, or relaxing, we can listen anytime, anywhere.  The days…

read more
How to Build a Price Comparison Website: A Step-by-Step Guide

How to Build a Price Comparison Website: A Step-by-Step Guide

Are you a product manager, startup founder, or serial entrepreneur interested in creating your own price comparison site?  In this article, you’ll…

read more
7 Brilliant Music App Ideas for Startups to Launch

7 Brilliant Music App Ideas for Startups to Launch

Do you remember the days of playing songs from a computer hard drive using Windows Media Player or Winamp? We’ve come a…

read more
Loan Lending App Development: Costs, Processes, and Steps

Loan Lending App Development: Costs, Processes, and Steps

Looking to build a money-lending app but not sure where to start?  As a non-tech founder or product manager, this guide will…

read more
How to Find a Technical Co-Founder: A Step-by-Step Guide

How to Find a Technical Co-Founder: A Step-by-Step Guide

Finding the right technical co-founder can be a make-or-break for any startup.  If you’re an entrepreneur or investor struggling to build out…

read more
5 Best Recruiting CRM Software and Tools for 2024

5 Best Recruiting CRM Software and Tools for 2024

The top recruitment CRM solutions have become must-haves in today’s hugely competitive talent acquisition landscape. As demand grows for innovative recruiting and…

read more
Understanding Mobile App Development Partnership

Understanding Mobile App Development Partnership

Expanding your digital presence is non-negotiable for modern businesses. The market is highly competitive, with endless choices available to customers. To stand…

read more
7 Effective Tips to Scale from an MVP to a Full-Scale Product

7 Effective Tips to Scale from an MVP to a Full-Scale Product

Validating a business model with a minimum viable product (MVP) is one of the most popular startup launch strategies. Why? Launching with…

read more