Market Analysis and Insights
The size of the global insurtech market, which was estimated at USD 9,415.30 million in 2020, is expected to increase to USD 158,994.56 million by 2030, rising at a CAGR of 32.10% between 2021 and 2030.
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Integration of technologies like cloud computing, big data analytics, and IoT helps to prevent the development of chronic health issues while producing significant savings in claim costs. An ecosystem that is strong enough to manage risks and consumer engagement would result from the digitization of all healthcare data. The growing use of genomic and epigenetic technology in the market for determining biological age would change how life insurance is priced and implemented. Babylon, Discovery Vitality, Good Doctor, and Wellthy Therapeutics are just a few of the businesses that are active in this area of the insurtech industry.
Insurtech Market Scope :
| Metrics | Details |
| Base Year | 2023 |
| Historic Data | 2018-2022 |
| Forecast Period | 2024-2030 |
| Study Period | 2018-2030 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2030 | USD 158,994.56 million |
| Growth Rate | CAGR of 32.10% during 2022-2030 |
| Segment Covered | by Offering,Deployment Model , Technology ,Application ,by Region |
| Regions Covered | North America, Europe, Asia Pacific, South America, Middle East and Africa |
| Key Players Profiled | DXC Technology Company, Damco Group, InsuerTech Nova, Insurance Technology Services, KFin Technologies, Oscar Insurance, Trov, Inc., Wipro Limited, InuserTech Plum, Majesco, Quantemplate, Shift Technology, and Zhongan Insurance. |
Market Definition
The availability of data enables a business to monitor consumer behavior and gather insights to enhance the customer experience and offer superior services.
As insurtech is utilized more often, it makes it possible to make decisions that are more efficient and to put innovative business plans into action to satisfy the rising demands of the global insurance industry. An increasing number of customers are demanding efficient services and customized solutions, which is why usage-based insurance (UBI) models are starting to gain traction.
Key Market Segmentation
Insights on Technology
The Cloud Computing Segment Valued for the Highest Share
With a market share of almost 24.0% in terms of revenue in 2022, the cloud computing segment held the top spot. With its creativity, simplicity of use, and flexibility, cloud computing has completely changed the insurance sector. The expansion is anticipated to be fueled by the widespread adoption of Bring Your Own Device (BYOD) rules as well as the increasing quantity of information that insurance firms are gathering. A cloud computing solution's fast implementation, cost-effectiveness, and scalability are reasons why insurance firms are implementing them.
In the meanwhile, collaborations between cloud computing service providers and insurance firms are assisting businesses in improving their insurtech solutions, which is anticipated to promote market expansion. As an illustration, in November 2021, Amazon Web Services Inc. said that American International Group, Inc., a corporation that provides insurance, had chosen it as its preferred public cloud provider. The goal of this effort is to improve customer services provided by American International Group.
Insights on Region
The North America Region Accounted for the Highest Share
By accounting for more than 36.03% of worldwide revenue, North America dominated the insurtech market in 2022. As consumer spending on insurance-related products rises in the area, insurtech solutions are being adopted at a faster rate. Additionally, these systems provide adaptable and personalized health and property insurance programmes. The region's market development is also being driven by the increasing number of insurtech firms there.
Key Company Profiles
Among the top companies operating in the insurtech industry are DXC Technology Company, Damco Group, InsuerTech Nova, Insurance Technology Services, KFin Technologies, Oscar Insurance, Trov, Inc., Wipro Limited, InuserTech Plum, Majesco, Quantemplate, Shift Technology, and Zhongan Insurance.
COVID-19 Impact and Market Status
Consumer spending was first affected by the pandemic's economic decline, which also raised financial insecurity. This in turn has an impact on the demand for certain insurance policies, such as travel insurance and insurance against the cancellation of events.
Insurers and insurtech firms were under a lot of pressure as a result of the unexpected increase in COVID-19 claims, including health and business disruption claims. It became essential to process claims effectively, and some insurtech companies had to swiftly adjust to meet the additional demand. Investment in the insurtech industry was somewhat hampered by the economic uncertainties brought on by the epidemic. Due to investors' increased caution, some firms had trouble obtaining finance.
Financial market swings during the pandemic may have had an impact on insurtech firms that relied on investment income to augment their revenue. In several areas, officials temporarily changed insurance laws in reaction to the epidemic in order to relieve individuals and companies. Companies in the insurtech industry have to adjust to these developments and manage shifting regulatory environments.
Latest Trends
1. Businesses in the insurtech sector are rapidly using data analytics and artificial intelligence (AI) for risk assessment, pricing, and fraud detection. Machine learning methods are enhancing both claim pattern prediction and underwriting accuracy.
2. The real-time data generated by telematics devices and Internet of Things (IoT) sensors in automobiles, homes, and wearables allow for usage-based insurance (UBI) and tailored coverage. This pattern is especially notable in the vehicle insurance sector, where pricing is based on driving behavior data, and safe drivers are rewarded.
3. The potential of blockchain technology to increase transparency in the insurance industry and speed up processes like claim administration is being researched. Smart contracts built on blockchain technology can automate the implementation of rules and dispute settlement.
4. The primary objective of insurtechs is to provide seamless and streamlined digital experiences. This includes purchasing insurance online, using chatbots for customer service, managing insurance on a smartphone, and using virtual agents.
5. The use of parametric insurance is becoming more widespread, especially for specialist risks like natural disasters. Parametric plans replace the traditional claims review procedure with automated payouts when certain conditions (such as a particular quantity of rainfall) are met.
Significant Growth Factors
The insurance sector's rapid digital revolution has been a key factor in insurtech's expansion. Traditional insurers are using technology more and more to improve customer service, reduce processes, and maintain their competitiveness.
Insurance companies are being forced to deliver more digital and client-focused solutions as a result of shifting consumer tastes and expectations. The vanguard of satisfying these expectations is frequently occupied by insurtech enterprises.
Insurtech companies can now analyze enormous volumes of data for more accurate risk assessment, pricing, and fraud detection thanks to advances in data analytics and AI. This improves the effectiveness of handling claims and underwriting. By offering real-time information on driving behavior, telematics devices, and IoT sensors are revolutionizing the car insurance industry. This information is used to tailor premiums and reward safe driving.
Restraining Factors
Due to the extensive regulation of the insurance sector, insurtech businesses must traverse a variety of complicated regulatory regimes.
Market expansion and entrance might be slowed down by compliance issues. Significant obligations come with handling private consumer data. Insurance technology companies need to make significant investments in cybersecurity defences and make sure that data privacy laws are followed. It's crucial to establish confidence in online insurance services.
Customers who have reservations about data privacy or the dependability of digital platforms can be reluctant to use insurtech. Insurtech solution development and scalability can entail large capital expenditures. For new businesses and smaller market participants, this may be a hurdle. It might be difficult to combine legacy systems used by traditional insurers with cutting-edge insurtech solutions. This may make new technology uptake more gradual.
Recent Developments in the Global Insurtech Market: A Snapshot
• Property and casualty insurance provider Heritage Insurance Holdings Inc. established cooperation with insurtech P&C carrier Slide in November 2021. The old business would use Slide's skills through this agreement to enhance underwriting and rating choices.
Key Segments Insurtech Market
by Offering
• Solution
• Service
Deployment Model Overview
• On-premise
• Cloud
Technology Overview
• Artificial Intelligence
• Cloud Computing
• Blockchain
• Big Data & Business Analytics
• IoT,
• Others
Application Overview
• Product Development & Underwriting,
• Sales & Marketing,
• Policy Admin Collection & Disbursement,
• Claims Management
Regional Overview
North America
• U.S
• Canada
Europe
• Germany
• France
• UK
• Rest of Europe
Asia Pacific
• China
• India
• Japan
• Rest of Asia Pacific
South America
• Mexico
• Brazil
• Rest of South America
Frequently Asked Questions (FAQ) :
The global Insurtech market size is projected to reach USD 158,994.56 million by 2030.
The Insurtech market is growing at a CAGR of 32.10% over the forecast period.
North America dominated the market for Insurtech market and accounted for the largest revenue share.
The top companies that hold the market share in Insurtech market are DXC Technology Company, Damco Group, InsuerTech Nova, Insurance Technology Services, KFin Technologies, Oscar Insurance, Trov, Inc., Wipro Limited, InuserTech Plum, Majesco, Quantemplate, Shift Technology, and Zhongan Insurance.
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