Funding Opportunity
This ‘Space for Insurance Technology’ opportunity offers funding to European teams interested in developing services integrating technology solutions to the insurance sector. The European Space Agency (ESA) will provide funding for six-month feasibility studies known as ‘Kick-Starts’, which can lead to larger-scale projects and pilots. Kick-Starts are funded at 75% by ESA, up to a maximum of €75K per contract. Proposed services must use satellite data or space-based technologies. Please see the ‘authorisation of funding’ section below to verify your team’s eligibility.
The Challenge
The global insurance industry grew by 7.5% in 2023, the fastest growing rate since 2006, and is expected to maintain a steady growth rate of 5.5% annually over the next decade, matching the growth rate of the global GDP.
The sector is undergoing a transformation shaped by digitalisation and product innovation, with Artificial Intelligence (AI) playing a key role. While AI is already embedded in the sector, it is constantly evolving and expected to become increasingly integral. The 2024 ratification of the EU AI Act by the European Parliament introduces significant changes to insurers’ operational frameworks, requiring alignment with new legal and ethical standards, with non-compliance penalties of up to €35 million or 7% of global turnover.
Digitalisation is important for improved customer experience and expectations are evolving, with younger buyers driving demand for convenient, online insurance products. Therefore, traditional providers are migrating their operations to new online facilities to increase access, speed and end-to-end customer service. Customers now expect convenient, user-friendly services, with high-touch interactions that offer tailored support and effective solutions their unique circumstances.
Despite technological advancements, the insurance sector remains under pressure to predict, quantify and address the financial and operational impacts of an ever-changing environment, shaped by weather-related disasters, climate change, cyber-attacks, data breeches and regulatory changes. Prediction instead of mitigation has become an important principle. The sector can harness technological solutions to detect and prevent damage, reducing the need to spend resources on mitigation. Moreover, the cost-of-living crisis and deteriorating economic conditions have contributed to an increase in insurance fraud, with a rise of 61% in 2023 as reported by the Insurance Fraud Enforcement Department (IFED) of the City of London Police.
Topics of Relevance
Below are some relevant topics that have been identified for this Kick-Start.
AI trust and risk management
The integration of cutting-edge technology such as AI presents both opportunities and challenges for insurers. Tools such as generative AI models (e.g., ChatGPT), are increasingly used to detect and analyse data more efficiently. However, insurers must address potential risks, particularly with the EU AI Act introducing a formal AI definition and categorising applications by risk. Insurance and financial services are flagged as high-risk areas, requiring transparency, robust governance, and adherence to standards that safeguard fundamental rights. For insurers, these might include algorithms that determine eligibility for policies or claims.
To comply with the act, high risk AI systems must be designed so that certain events and substantial modifications are automatically recorded, to allow for human oversight, and achieve appropriate levels of accuracy, robustness and cybersecurity. The Association of British Insurers has outlined a framework for responsible AI use, focused on safety, security, robustness, and transparency as well as explainability, fairness, accountability and governance.
Applications may include tools for risk management, record-keeping, and collecting claim data, (e.g., time stamping and evidence gathering). These would underpin the record keeping capabilities required to meet new demands within the sector by setting up automated logging to monitor system operations, risk occurrence and duration of use.
Potential users could include:
- brokers
- insurance companies
- reinsurance companies
Customer experience
Customer experience is a strong predictor and driver of financial and organisational outcomes. With the evolution of customer expectations, the sector must adapt and embrace technological solutions that can help secure competitive advantage and overcome poor digital experiences.
Strategic use of digital channels can enhance customer experience, streamline processes, and enable remote transactions. Mobile technology, such as consumer-facing apps, digital platforms, and online portals contribute to better engagement with customers.
Potential applications include:
- platforms allowing remote and automated claim management. Services might include platforms able to detect certain environmental conditions and thresholds, triggering automatic payments and claims settlements.
- platforms allowing customisation of policies or offers based on customer usage and data tracking. For instance, services could use telemetry devices in automotive insurance, ensuring an accurate record of accidents and better understanding of driving behaviour, unlocking certain benefits or policy conditions.
Prediction instead of mitigation
Internet of Things (IoT) applications are helping the insurance industry move from a ‘repair and replace’ model to ‘predict and prevent’. Smart home sensors and connected vehicles are examples of technology that can alert both users and carriers of impending risk, providing opportunity for loss avoidance and risk mitigation.
Potential applications include:
- services with Internet-enabled home appliances and infrastructure-focused sensors, providing additional value and protection against expensive risks such as water leaks, high winds and other climate-related damages
- services detecting potential faults or required replacements in business fleets, reducing costs and potential downtime.
Fraud detection
The Insurance Fraud Detection Market is projected to grow from USD 5.69 billion in 2024 to USD 21.61 billion by 2029, at a compound annual growth rate (CAGR) of 26.01% during this period. Annually, insurers pay a significant amount for fraudulent claims, with a surge due to the latest cost of living crisis and economic situation. Between March 2022 and April 2023, the UK saw a 61% increase in insurance fraud. In the US, insurance fraud results in an estimated annual loss of $308.6 billion. In 2022, UK insurers identified over 70 000 fraudulent claims worth GBP 1.1 billion, investing at least 200 million annually to identify fraud.
Potential applications could include:
- services such as identification of transaction patterns and claims data to detect outliers and anomalies that might indicate fraud, flagging them for investigation. T
- services that support the analysis of circumstances before and after a claims event (e.g., disasters), to inform decision-making on claims and damage assessment. Complemented by IoT, these services can allow the collection of in-situ data.
Potential users could include:
- brokers
- insurance companies
- reinsurance companies
Value of Space
Proposed services must use one or more space asset. Some examples of the use of space assets are provided below.
Global Navigation Satellite Systems (GNSS)
GNSS is instrumental in the development of applications requiring certified geo-referencing, timestamping of transactions metadata or geo-fencing. Automated claims services related to thefts or accidents can rely on GNSS for accurate geolocation, as well as predictive maintenance services using IoT sensor data. The same is applicable in the case of automated claims for asset transportation and goods tracking. Time-stamping services can ensure the integrity and authenticity of digital records and transactions, supporting the accuracy of insurance solutions and providing robust record keeping. For instance, GNSS enables geo- and time- tagged photographs to be used in insurance claims processing for damaged buildings or cars and the timestamping of titles transfer during ownership changes.
Satellite Earth Observation (SatEO)
SatEO can be used to monitor environmental and geographical conditions of the areas of interest, such as, the detection and proof of disasters (e.g., floods, fire, wind), agricultural conditions (e.g., yield, crop health) or infrastructure (e.g.,built area, unauthorised logging). Moreover, SatEO enables comparison of pre and post events to support claims management, therefore contributing to reduction of fraud.
Satellite imagery can also enable the historical analysis of different events to support identification and understanding of potential trends and ultimately indicate when fraudulent activities might have happened. Supported by GNSS, EO enables services such as parametric insurance where pay outs are triggered when particular thresholds are met (e.g., rainfall, temperature), reducing the risk of fraud from filing a claim.
Satellite Communications (SatCom)
Automated claim services can use satellite communications for real time information about assets or areas of interest for usage-based insurance policies (e.g., telemetry devices), reducing the time and risk of fraudulent activities. The same is valid in for prediction services, where information can be relayed in real time even when no terrestrial connectivity is present, supporting the robustness of response and reducing insurance costs. For claims after a natural disaster, satellite communications can be an important vehicle to transmit data in a secure and resilient manner, particularly for remote or inaccessible locations.
What we look for
Kick-Start activities explore the business opportunity and the technical viability of new applications and services that exploit one or more space assets (e.g. Satellite Communications, Satellite Navigation, Earth Observation, Human Spaceflight Technology).
This call for Kick-Start activities is dedicated to the theme “Space for Insurance Technology” and means that the call is open to companies that intend to develop space-enabled applications and services integrating technology solutions to the insurance sector.
What we offer
We offer funding and support to companies, both for business case assessment and for the development of new, space-based services.
Our offer includes:
- Technical & commercial guidance
- Access to our network and partners
- Use of the ESA brand for your service
- Zero-equity funding
- Each selected activity will receive 75% funding by the European Space Agency of up to 75k EUR.
How to apply
- Register your team on esa-star registration today.
- When the Kick-Start opens on 30 April 2025 visit esa-star publication and search for the Space for Insurance Technology opportunity to download the official competition documents.
- Use the official documents to prepare your proposal.
- Reach out to your National Delegate (if applicable) to request a Letter of Authorisation. Contact details of each National Delegate can be found here.
- Submit your proposal via esa-star Tendering before the deadline on 6 June 2025.
Authorisation of Funding
ESA Space Solutions can provide funding to perform Kick-Start activities to any company (economic operator) residing in the following Member States: Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Ireland, Italy, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Portugal, Romania, Slovenia, Sweden, Switzerland, and the United Kingdom.
Germany has pre-authorised the funding to this call. Applicants from this country do not need to obtain a letter of authorisation from their National Delegation.