As South Africa’s insurtech sector continues to grow and mature, local players are increasingly looking beyond national borders for expansion opportunities.
One market that stands out for its potential and strategic fit is the United Kingdom. From its rich history in insurance to its appetite for innovation, the UK offers fertile ground for South African insurtechs ready to scale.
For your insurtech company, Charlotte Koep, CEO of Root Platform, offers 3 strong arguments for why entering the UK market might be the next wise move.
1. The UK Insurance Market Is Expanding — Fast
Often referred to as the birthplace of modern insurance, the UK has a deep-rooted and well-established insurance industry. With Lloyd’s of London, the world’s largest commercial (re)insurance marketplace, at its heart, the UK remains a global center of insurance excellence.
But this isn’t just about tradition — the market is also thriving in modern terms. In 2023, the UK’s personal lines insurance segment saw Gross Written Premiums (GWP) rise by 13% year-on-year to £36.17 billion. Commercial insurance wasn’t far behind, growing by 12.5% to £37.51 billion.
A major driver behind this growth? Digitization. The rise of AI, automation, and advanced data analytics has transformed how insurers operate and engage with customers. The result: faster, more personalized, and more cost-effective offerings, especially in areas like motor and home insurance — a sweet spot for innovative insurtechs.
2. Personalisation Is the New Standard
Today’s consumers want more than generic coverage—they want insurance that fits seamlessly into their lives. According to PWC, 40% of UK customers prefer personalized insurance products tailored to how they live and use their assets. And with insurance penetration hovering around 10% of GDP, there’s still room for growth — especially with tech-forward solutions.
This is where South African insurtechs can shine. With flexible, API-first platforms, insurtech companies can develop and deliver hyper-personalized products at scale. These tools lower the barriers to entry for creating niche or custom insurance solutions, enabling insurers to stay closely attuned to customer needs and behaviors.
3. A Regulatory Environment That Encourages Innovation
Unlike more rigid jurisdictions, the UK’s insurance regulator — the Financial Conduct Authority (FCA)—takes a proactive and innovation-friendly approach. The FCA not only sets high governance standards but also creates openings for tech-led players that can adapt quickly to evolving regulatory landscapes.
This progressive regulatory stance gives agile insurtechs a real edge. Companies that can stay compliant while iterating fast have the opportunity to lead the way in embedded distribution, digital-first offerings, and customer-centric models.
For South African insurtechs aiming to go global, it’s a market that doesn’t just offer opportunity — it offers alignment. The UK offers an exciting blend of market maturity, digital transformation, and regulatory openness.
Digital transformation and technology adoption remain top of the UK’s insurance agenda, offering local insurtechs a good opportunity for expansion, concludes Koep.
