Middle East and Africa Insurtech Market By Insurance Type (Life, Non-Life, Others), By Service (Consulting, Support and Maintenance, Managed Services), By Country, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

Middle East and Africa Insurtech Market was valued at USD 76.88 Million in 2024 and is anticipated to grow USD 109.44 Million by 2030 with a CAGR of 6.06% during forecast period. The Middle East and Africa (MEA) Insurtech market is experiencing rapid growth, driven by increasing digital adoption, rising insurance penetration, and government initiatives supporting financial technology. Insurtech startups are leveraging AI, blockchain, and big data to enhance customer experience, streamline claims processing, and improve risk assessment. Countries like the UAE, Saudi Arabia, and South Africa are at the forefront, fostering innovation through regulatory sandboxes and partnerships with traditional insurers.

Key Market Drivers

Increasing Digital and Mobile Penetration

The growing adoption of smartphones and internet connectivity in the Middle East and Africa is a significant driver of the Insurtech market. Countries like the UAE, Saudi Arabia, and South Africa have high mobile penetration rates, with internet usage surpassing 90% in some regions, enabling digital insurance platforms to expand rapidly. In 2024 Saudi Arabia had approximately 36.84 million internet users, reflecting a remarkably high internet penetration rate of 99%. This indicates that nearly the entire population had access to the internet, underscoring the country’s strong digital infrastructure and widespread connectivity. Mobile-based microinsurance solutions are gaining traction, especially in Africa, where traditional insurance penetration remains low. Digital platforms and mobile apps allow insurers to reach a broader audience, automate policy issuance, and provide instant claims processing, enhancing accessibility and efficiency. The rise of digital payments and fintech ecosystems further facilitates Insurtech growth by integrating mobile wallets and electronic transactions into the insurance landscape.

Government Support and Regulatory Advancements

Governments across the Middle East and Africa are actively fostering the Insurtech sector through supportive policies, regulatory frameworks, and fintech initiatives. The UAE and Saudi Arabia have introduced regulatory sandboxes, allowing Insurtech startups to test innovative solutions in a controlled environment. Similarly, South Africa’s financial sector regulators are implementing progressive frameworks to promote digital insurance adoption while ensuring consumer protection. Many African nations are also partnering with global organizations to improve insurance accessibility and affordability. Government-led digital transformation programs, such as Saudi Vision 2030 and the UAE’s Smart Government initiative, are encouraging insurers to adopt technology-driven solutions, boosting market competitiveness.

Rising Demand for Affordable and Microinsurance Solutions

A large segment of the population in the MEA region remains underinsured or uninsured due to high insurance costs and limited accessibility. Insurtech firms are addressing this gap by offering affordable, pay-as-you-go, and usage-based insurance models tailored to low-income populations. In Africa, microinsurance products targeting agriculture, health, and life insurance are growing in popularity, leveraging mobile money services for premium payments and claims disbursement. Companies like BIMA and Pula are revolutionizing the sector by providing low-cost, tech-enabled insurance solutions. The rising demand for inclusive financial services, particularly in rural and underserved areas, is driving Insurtech innovations focused on affordability and accessibility.

Integration of AI, Blockchain, and Big Data Analytics

The increasing adoption of artificial intelligence (AI), blockchain, and big data analytics is revolutionizing the MEA Insurtech market by improving underwriting, fraud detection, and claims processing. In 2024, United Arab Emirates (UAE) has not implemented specific legislation exclusively governing artificial intelligence (AI). Instead, the regulatory environment is shaped by a combination of decrees, guidelines, and strategic initiatives aimed at fostering AI development while ensuring ethical standards. AI-driven chatbots and automated customer service tools are enhancing user experience, while machine learning algorithms enable more accurate risk assessment and personalized insurance offerings. Blockchain technology is improving transparency and security in policy management and claims settlements, reducing fraud and operational inefficiencies. The use of big data analytics is helping insurers analyze customer behavior, predict risks, and optimize pricing models. As technological advancements continue, Insurtech companies in the region are leveraging these innovations to improve efficiency, customer engagement, and overall market growth.

Download Free Sample Report

Key Market Challenges

Regulatory Complexities and Compliance Issues

The Insurtech market in the Middle East and Africa faces significant regulatory challenges due to the diverse and evolving legal frameworks across different countries. Each nation has distinct regulations governing the insurance sector, making it difficult for Insurtech startups to expand seamlessly across borders. While some countries, like the UAE and Saudi Arabia, have introduced regulatory sandboxes to support innovation, others have rigid and outdated insurance laws that create barriers to digital transformation. In many African nations, regulatory uncertainty and slow approval processes hinder the adoption of new insurance technologies. Moreover, compliance with anti-money laundering (AML) and data protection laws adds complexity, as many countries in the region have stringent requirements for financial institutions, including digital insurers. The lack of uniformity in regulations across the MEA region results in operational inefficiencies, increased costs, and potential legal risks for Insurtech firms.

Low Insurance Penetration and Consumer Trust Issues

Despite the growing digital transformation, the Middle East and Africa still struggle with low insurance penetration rates, especially in rural and underserved areas. Many consumers in the region lack awareness about insurance products, perceive them as expensive, or do not trust insurance providers due to past experiences of inefficient claims processing and fraud. In Africa, insurance penetration remains below 3% in many countries, indicating a vast untapped market, but also highlighting the challenge of consumer skepticism. Traditional cultural and religious beliefs also influence insurance adoption, as some populations prefer Takaful (Islamic insurance) over conventional insurance products. Additionally, the complexity of insurance policies and lack of financial literacy further deter people from purchasing insurance. Insurtech firms must invest heavily in customer education, transparent communication, and trust-building initiatives to overcome these barriers.

Cybersecurity Risks and Data Privacy Concerns

As the Insurtech market in MEA increasingly relies on digital platforms, AI-driven analytics, and cloud-based services, cybersecurity threats and data privacy concerns pose major risks. Many Insurtech companies collect and process vast amounts of sensitive customer data, including personal identification, medical records, and financial transactions. Weak cybersecurity infrastructure in some parts of the region makes these platforms vulnerable to cyberattacks, fraud, and data breaches. The lack of robust cybersecurity regulations in certain African nations further exacerbates the problem, leaving both insurers and consumers exposed to potential risks. Additionally, compliance with global data protection standards, such as the European Union’s GDPR, can be challenging for Insurtech firms operating in multiple jurisdictions. Ensuring strong cybersecurity measures, investing in data protection technologies, and building consumer confidence in digital insurance platforms remain critical challenges for Insurtech companies in the region.

Key Market Trends

Expansion of Embedded Insurance Solutions

A growing trend in the MEA Insurtech market is the integration of insurance products into non-insurance platforms, commonly known as embedded insurance. This model allows consumers to purchase insurance seamlessly within everyday transactions, such as buying electronics, booking travel, or accessing financial services. E-commerce platforms, ride-hailing services, and digital payment providers are increasingly partnering with Insurtech firms to offer built-in insurance coverage at the point of sale. For example, in Africa, mobile network operators are bundling health and life insurance with mobile airtime plans, while in the Middle East, airlines and travel platforms are incorporating travel insurance into booking processes. This trend is enhancing accessibility, improving customer engagement, and driving higher insurance penetration in the region.

Rise of Parametric Insurance for Climate and Agriculture Risks

Parametric insurance, which provides payouts based on predefined triggers like weather conditions or natural disasters, is gaining traction in the Middle East and Africa, particularly in agriculture and disaster-prone areas. Traditional indemnity-based insurance models have struggled to meet the needs of smallholder farmers and businesses affected by climate change due to lengthy claims processes and high costs. Insurtech companies are leveraging satellite data, IoT sensors, and AI-driven risk modeling to develop parametric insurance solutions that ensure faster and more transparent payouts. In Africa, startups like Pula and Kilimo Salama are offering weather-indexed insurance to farmers, protecting them against droughts and floods. Similarly, in the Middle East, parametric insurance is being explored for sectors like energy and infrastructure, where extreme weather events pose significant risks.

Increasing Adoption of Usage-Based and On-Demand Insurance

The demand for flexible and personalized insurance policies is driving the adoption of usage-based and on-demand insurance models in the MEA region. Consumers, especially millennials and gig economy workers, are seeking insurance coverage that aligns with their specific usage patterns rather than traditional fixed-term policies. Insurtech firms are leveraging telematics, mobile apps, and AI to offer pay-as-you-go auto insurance, health insurance, and travel insurance, where customers pay only for the coverage they use. In the UAE, auto insurers are implementing telematics-based pricing models that adjust premiums based on driving behavior, while in Africa, digital health insurance platforms are providing short-term coverage options for freelancers and small businesses. This trend is reshaping the insurance landscape by making policies more affordable, flexible, and accessible to a wider audience.

Growth of Blockchain and Smart Contracts in Insurance

Blockchain technology and smart contracts are transforming the MEA Insurtech market by enhancing transparency, reducing fraud, and streamlining policy administration. Insurers are increasingly exploring blockchain for secure customer identity verification, automated claims processing, and decentralized policy management. Smart contracts, which automatically execute agreements when predefined conditions are met, are reducing paperwork and eliminating disputes in claims settlements. In the UAE, blockchain-based insurance platforms are being developed as part of the government’s broader digital transformation strategy, while in Africa, Insurtech startups are using blockchain to facilitate microinsurance and cross-border policy transactions. As blockchain adoption grows, it is expected to improve operational efficiency, increase consumer trust, and drive innovation in the insurance sector.

Segmental Insights

Insurance Type Insights

The Non-Life Insurance segment was the fastest-growing in the Middle East and Africa (MEA) Insurtech market, driven by rising demand for health, motor, travel, and cyber insurance. Government-mandated health insurance in countries like the UAE and Saudi Arabia, along with telematics-based motor insurance, is accelerating adoption. Embedded and on-demand insurance models are gaining traction, integrating with e-commerce, fintech, and ride-hailing platforms. Parametric insurance for agriculture and climate risks is expanding, particularly in Africa, ensuring quick payouts. Additionally, SMEs are increasingly adopting digital insurance for asset protection and liability coverage, making Non-Life Insurance the most dynamic segment in the MEA Insurtech landscape.

Download Free Sample Report

Country Insights

Saudi Arabia was the dominating country in the Middle East and Africa (MEA) Insurtech market, driven by strong government support, regulatory advancements, and rapid digital transformation. The Saudi Central Bank (SAMA) has introduced regulatory sandboxes, fostering Insurtech innovation, while Vision 2030 promotes financial inclusion and digital insurance adoption. The country has a high demand for health and motor insurance due to mandatory coverage policies. Leading insurers are integrating AI, blockchain, and telematics for personalized products, enhancing customer experience. With a tech-savvy population and rising fintech investments, Saudi Arabia remains at the forefront of Insurtech growth in the MEA region.

Recent Developments

• In 2024, Najm for Insurance Services Company launched an advanced telematics initiative in Saudi Arabia, partnering with Cambridge Mobile Telematics and AiGeNiX to enhance road safety through AI-driven analytics. The program involves installing smart devices in vehicles to monitor driving behaviors such as speed, acceleration, and adherence to traffic regulations, aiming to reduce accidents and improve driving standards.
• In 2024, Tawuniya Insurance Company launched a 12-week virtual accelerator program, InsurAi, to support InsurTech and FinTech startups in the MENA region.

Key Market Players   

• ERGO Sigorta
• Harel Insurance Investments & Finance Services
• Bayzat
• Aqeed
• Yallacompare
• Migdal Holdings
• Old Mutual
• Liberty Holdings
• Clal Insurance Enterprises Holdings Ltd.
• Momentum Metropolitan Life Assurers

Report Scope:

In this report, the Middle East and Africa Insurtech Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Middle East and Africa Insurtech Market, By Insurance Type:

o   Life

o   Non-Life

o   Others

• Middle East and Africa Insurtech Market, By Service:

o   Consulting

o   Support and Maintenance

o   Managed Services

• Middle East and Africa Insurtech Market, By Country:

o   Saudi Arabia

o   UAE

o   Egypt

o   Qatar

o   Oman

o   South Africa

o   Turkey

o   Nigeria

o   Rest of Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Middle East and Africa Insurtech Market.

Available Customizations:

Middle East and Africa Insurtech Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

Middle East and Africa Insurtech Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at sales@techsciresearch.com