When Maria Čoko first moved from insurance strategy consulting into the startup world, she noticed a gap. While fintech had matured into a well-established category, insurtech was still finding its footing. "It seemed like there was just so much still to do in the insurtech space," said Čoko, COO at Insurtech Gateway. "That really sparked the excitement for me."
Today, Čoko (pictured) is part of a hands-on team that supports early-stage ventures with capital, regulatory permissions, product structuring and access to market. And in a market where venture funding has slowed significantly, her focus is clear: building resilient ecosystems that support innovation while protecting downstream players, including brokers and their clients.
The insurtech ecosystem has matured since its early days, but brokers still face a recurring challenge: distinguishing promising solutions from short-lived experiments. A diversified portfolio model, says Čoko, offers one way to mitigate that risk.
"When you've got a portfolio of multiple solutions, you're not just solving for one narrow client need. You're picking the best of many," she said. "That broad relevance ensures you get best-in-class options rather than a one-off solution."
Ecosystem-backed startups also tend to launch faster. Backed by specialist investors who understand regulatory hurdles, capacity relationships, and pilot design, these ventures can reach market more quickly, making life easier for brokers seeking usable tools.
"Especially with AI and other optimization technologies, many brokers worry new solutions will become large IT projects. But with the right partners, integration pain points can be removed," she said. "For brokers pitching to their clients, adoption becomes much more straightforward."
While the number of new insurtech launches has slowed, the importance of strategic capital has only grown. Brokers reliant on technology should be aware of the risks that come with market contraction.
"Less funding ultimately means fewer ideas, less competition, and potentially fewer choices for brokers," said Čoko. "Some insurtechs may run out of cash or fail to raise their next round, creating continuity risks for their users."
She emphasized the need for a mix of investor types – venture capital, corporate venture arms, and strategic insurance partners – to maintain momentum. Startups with diverse backers tend to weather macroeconomic shifts better, while a disciplined, milestone-based capital strategy ensures businesses are solving real problems.
"Post-2021, there's more scrutiny on what companies actually achieve. That staged approach builds confidence and leads to more sustainable innovation," she said. "Internal innovation matters too. Brokers and insurers need to give teams the freedom to test and build."
Not every insurtech idea will scale, but certain characteristics can serve as early indicators of success.
"Commercial traction is key. You want to see evidence of real client adoption and, more importantly, retention," said Čoko. "A lot of startups show a spike in usage but drop off at renewal. The real winners have recurring revenue and solve meaningful pain points."
She pointed to strong teams, improved underwriting data, and sustainable economics as additional green flags. "Better loss ratios, planning insights, and a viable business model all add value. We're no longer in a 'growth at any cost' era."
Čoko sees faster product development cycles and sharper emphasis on distribution and partnerships.
"The AI wave means products can be spun up in months, not years. But that makes distribution even more critical," she said. "The earlier you engage customers, the faster you validate whether you're solving a real need."
For brokers, this means watching closely for new distribution models that can extend their reach and efficiency. As capital flows into highly specialized areas like cyber, parametrics, or renewable energy, there are opportunities to serve previously unprofitable or unreachable market segments.
"We still have massive protection gaps. Ecosystems that help brokers access these emerging risks – and do so sustainably – will lead the next wave of innovation," she said.
