The global insurtech market size was valued at USD 2.80 billion in 2020 and is anticipated to grow at a CAGR of 42.9% during the forecast period. There has been a massive increase in the generation of data owing to the increased adoption of mobile devices and social media.
The availability of data enables an organization to track customer behavior and gain insights to improve consumer experience and offer enhanced services. Increasing adoption of insurtech allows effective decision-making and application of innovative business strategies to cater to the growing demands in the global insurance market.
Insurtech has simplified micropayments for consumers owing to the increased adoption of mobile phones and wearable tech. Key players operating in the market are developing micropayment systems to service consumers in regions with low levels of insurance penetration. Insurtech enables the development of platforms offering one-stop solutions for customers for purchase, payments, servicing, and interaction with social media.
Insurance companies are developing self-directed solutions for customer acquisition and customer service to cater to the growing demand for online and mobile channels. Customer-centric solutions are increasingly being used for enhanced user experience, transaction efficiency, and transparency. Rising consumer demands for efficient services and personalized solutions are leading to the emergence of Usage-based Insurance (UBI) models.
Know more about this report: request for sample pages
The adoption of wearable tech has increased significantly over the past few years, leading to insurtech being implemented in the telemedicine market. The demand for insurtech is expected to increase significantly from the healthcare sector during the forecast period. Implementation of insurtech enables data gathering by carriers for risk mitigation and improving customer experience.
Integration of technologies such as big data analytics, cloud computing, and IoT assists in avoiding the development of chronic health conditions while resulting in considerable savings in claims. Digitization of complete healthcare data would provide a healthy ecosystem to manage risks and customer engagement.
Growing adoption of genomic and epigenetic technology in the market for biological age determination would alter the costing and execution of life policies. Some companies operating in this segment of the insurtech industry include Babylon, Discovery Vitality, Good Doctor, and Wellthy Therapeutics among others.
Greater availability of transactional data is fueling increased adoption of data analytics in insurtech to minimize risks, reduce costs, optimize profits, and offer enhanced customer services and customized solutions. The move towards data analytics for customer analytics, marketing analytics, etc. enables companies to offer personalized customer solutions while improving operating efficiency and profits. The growing adoption of artificial intelligence simplifies and improves onboarding and customer service, claims settlement experience, fraud prevention, and anti-money laundering.
The market is primarily segmented on the basis of deployment model, insurance type, end-use, technology, and region.
By Deployment Model
By Insurance Type
Know more about this report: request for sample pages
On the basis of the deployment model, the market for insurtech is segmented into on-premise, and cloud. The market demand for cloud-based deployment is expected to increase during the forecast period owing to the significant increase in data generation, and rising use of mobile devices and social media. Decreasing the cost of data storage coupled with the growing adoption of cloud computing accelerates the growth of this insurtech industry segment.
The insurance type market segment of the insurtech industry has been divided into commercial insurance, property and casualty insurance, health insurance, life insurance, and others. The market demand for property and casualty insurance is expected to increase during the forecast period. Businesses are increasingly using wearables and sensors for avoiding workplace injury. Organizations are also incorporating technologies into workers’ compensation.
A massive increase in the use of smartphones, mobile devices, multimedia content, and clickstream data has resulted in increased adoption for insurtech from this market. A significant increase in the data generated by banking and financial institutions has encouraged the use of advanced analytics and artificial intelligence for fraud detection and prevention.
The technology market segment has been divided into cloud computing, blockchain, big data and analytics, artificial intelligence, IoT, machine learning, and others. A growing trend of blockchain-based smart contracts has been observed in the insurtech industry.
Blockchain-based smart contracts enable automation of life insurance policy claims by offering independent traction by the customer through a decentralized ledger and a set of pre-defined conditions. The adoption of smart contracts results in timely processing of claims, and improved efficiency.
North America market dominated the global insurtech market in 2020. Due to a significant increase in the need for automation of insurance operations, timely services, and improved efficiency, businesses are increasingly turning towards insurtech solutions. Established internet infrastructure in the region combined with increasing integration of advanced technologies in the insurance sector fuels the growth of the market for insurtech in the region.
The leading players in the insurtech market include Oscar Insurance, Tr?v, Inc., Wipro Limited, DXC Technology Company, Zhongan Insurance, Friendsurance, Shift Technology, Quantemplate, GetInsured, Insurance Technology Services, Analyze RE, Majesco, Allay, Damco Group, Bayzat, and Claim DI. These players are also collaborating with other market leaders to expand their offerings and acquire new customers.