Insurtech Market

Global Insurtech Market is valued at USD 3.85 Billion in 2021 and expected to reach 119.41 USD Billion by 2028 with a CAGR of 63.3% over the forecast period.

Global Insurtech Market: Global Size, Trends, Competitive, And Historical& Forecast Analysis, 2022-2028: Increasing number of insurance claims, surging digital technologies in insurance companies, government initiatives to ease the insurance administration process  are some of the major factors driving the growth of the Global Insurtech Market.

Scope of Global Insurtech Market

InsurTech (Insurance Technology) is the application of technology to the design, distribution, and administration of insurance products and services. Insurtech is developing solutions like the formulation of  ultra-customized plans, social insurance, and dynamically pricing premiums utilising new streams of data from Internet-enabled devices. Insurtech assists insurers in collecting and analysing consumer data, which can then be utilised to specifically target the proper client with an affordable price quotation. Furthermore, by utilising machine learning, artificial intelligence, and cloud computing, Insurtech aids in producing better projections of client wants, buy quantity, and decision making and insurance planning. Moreover, the need for insurtech solutions is increasing as it improves customer demand projections, boosts purchase volumes, and improves decision-making and insurance planning through the use of machine learning, artificial intelligence, and cloud computing. Sales of insurtech solutions are increasing as a result of the backing of numerous powerful technologies including as artificial intelligence (AI), machine learning, blockchain, and cloud computing, which provide real-time surveillance and monitoring of insured activity for many enterprises.

COVID-19 had a beneficial influence on the insurtech business, as the importance of insurance plans among clients has increased. Customers were able to pick from a variety of insurance products, including health insurance, house insurance, personal insurance, and more, which increased sales of insurtech solutions dramatically. As the demand for insurance policies has increased, insurance carriers' usage of sophisticated technology solutions in the insurtech sector has risen significantly, allowing them to deliver advanced tech-based services to their customers. As a result, demand for insurtech solutions has risen throughout the global health crisis. Furthermore, during the pandemic, sales of insurtech products skyrocketed as insurers increased their use of drones, mobile apps, and catastrophe models which in turn boosted the overall industry growth. Concurrently, demand for insurtech solutions is increasing as a result of preventive measures such as social distancing and remote working, which have aided in increasing the rate of digitalization throughout the insurance industry.

The global insurtech market is segmented based on the platform is segmented into offering is divided into solution and service. Based on deployment mode, global insurtech market is segmented into on-premise and cloud. Based on technology global insurtech market is segmented into artificial intelligence, cloud computing, blockchain, big data & business analytics, IoT and others. Based on end user global insurtech market is segmented into life & health insurance, property & casuality insurance which is further classified into auto insurance and buildings insurance which is further divided into commercial buildings insurance and home insurance further classified into dwelling coverage and contents coverage, marine insurance, liability insurance and others. Based on application global insurtech market is segmented into product deelopment & underwriting, sales & marketing, policy admin collection & disbursement, and claims management.  

The regions covered in the global Insurtechmarket report are North America, Europe, Asia-Pacific, Latin America, and the rest of the World. Based on country level, the market of global Insurtechis sub divided into U.S., Mexico, Canada, U.K., France, Germany, China, Italy, India, Japan, Southeast Asia, Middle East Asia (Saudi Arabia, UAE, Egypt) GCC, Africa, etc.

Global Insurtech Market Segmentation

By Platform

• Solution
  • Appetite Solutions
  • Data Solutions
  • Payment solutions
  • Quoting Solutions
• Service

By Deployment Mode

• On-Premises
• Cloud

By Technology

• Artificial Intelligence
• Cloud Computing
• Blockchain
• Big Data & Business Analytics
• IoT
• Others

By Insurance Types

• Life & Health Insurance
• Property and Casualty (P&C) Insurance
• Marine Insurance
• Liability Insurance
• Fire Insurance
• Vehicle Insurance
• Others

By Application

• Product Development & Underwriting
• Policy Admin Collection & Disbursement
• Claims Management
• Others

Key Players of Global Insurtech Market

Some major key players for the global Insurtech market report cover prominent players like

• Acko General Insurance
• Lemonade
• Friendsurance
• ZhongAn Online P&C Insurance Co. Ltd
• Oscar Health Insurance
• Quantemplate Limited
• BIMA
• Trōv
• Neos Insurance
• Clover Health
• others.

News

Guidewire Launches Insurtech Program, to connect the most Innovative startups in the P&C Industry with Insurers

On October 2021, Insurtech Vanguards a new initiative was introduced by Guidewire Software, Inc. The initiative is aimed at  identifying and publicising the hottest insurtech firms of interest to the P&C sector. The Insurtech Vanguards initiative expands on this endeavor by providing a mechanism for linking insurers with insurtechs, with the goal of identifying and promoting innovative firms of interest to the P&C market.

Droom Partnered with Turtlefin to Offer Insurance to its Customers

On October 2022, Turtlefin, an insurtech platform, teamed with Droom Technologies, an automobile e-commerce platform for buying and selling old and new automobiles, to offer motor vehicle insurance to Droom consumers. Droom will use Turtlefin's One API solution to power its interface, including its consumer app and website, and will give premiums from all of the main insurers to its clients in a single click, as well as present the best potential auto insurance alternatives.

InsurTech Hippo that focuses on the home insurance market has become a publicly traded company with its merger with special purpose acquisition company (SPAC) Reinvent Technology Partners.

On August 2021, the Israeli-founded firm received USD 700 million to provide tenants with coverage and to provide items for other homeowners such as upkeep, security, repairs, and eventually selling the property. Hippo also provides sensors that chirp when water leaks under a kitchen sink, prompting a plumber to come out and prevent serious damage, which not only benefits the homeowner but also reduces the amount Hippo would have to pay out in claims.

Increasing Number of Insurance Claims, Surging Digital Technologies in Insurance Companies, Government Initiaitives to Provide Insurance are Some of the Major Factors Driving the Growth of the Global Insurtech Market

One of the primary factors driving the growth of the insurtech industry is the rising number of insurance claims globally, with vehicle, life, and house insurance being the most prevalent insurance claims obtained by individuals worldwide. According to the Insurance Barometer's 2021 survey, 36% of American respondents expected to obtain life insurance in 2021. Insurance businesses are progressively investing in digital technology in order to minimise operating costs, increase operational efficiency, and enhance the overall client experience. The insurance sector is going through notable digitized transformation. With the proliferation of online channels, clients today demand the same degree of digital experiences from insurance companies as they do from other industries such as retail banking. As a result, customers are seeking insuretech since it can help with everything from pricing to underwriting to distribution. Insurtechs are pushing technical innovation in the insurance industry and increasing the standard for operational excellence.

Furthermore, regulators and government entities have been promoting innovation and change in the insurance business, with the Insurance Regulatory and Development Authority of India (IRDAI) playing an active role in this regard. As part of its Digital India Mission, the government has made it easier for people eligible to sign up for public health insurance programmes online, raising awareness about the significance of health insurance and making it easier to purchase a coverage.

Companies are adopting new digital solutions to scale their operations and establish product lines based on specialised customer demand, which is expected to drive demand for insurtech solutions and help in the expansion of the insurtech market. Digital technologies are utilised to better understand client wants and to improve products in response to changing customer demands. Blockchain technology's benefits, such as cost reductions, quicker payments, and fraud avoidance, are boosting demand among insurance businesses globally. Blockchain technology is being used in insurance companies for applications such as Know Your Customer (KYC), Anti-money Laundering (AML) procedures, claim handling, and creating peer-to-peer models, which is propelling the insuretech market forward.

However, different laws establish different norms and regulations across countries, and security and data breaches with financial centres taking a more united approach to regulation associated with Insurtech may stymie market growth. Despite this, increasing technological advancement and the advancement of data intelligence centres for fraud control may create more opportunities for the market's future growth.

North America is Expected to Capture a Major Share in the Global Insurtech Market

North America dominated the insurtech market in 2021, owing to growing acceptance of insurtech solutions and higher customer spending on insurance-related goods. Furthermore, these solutions provide personalised and adaptable property and health insurance options. The expanding number of insurtech firms in the region is also propelling market expansion.

Over the projection period, Asia Pacific is anticipated to be the fastest-growing insuretech regional market. The presence of multiple rising economies and financial centres in Singapore, India, and Hong Kong is likely to drive considerable growth in the area. Insurance providers in the region are aiming to provide low-cost insurance premium plans. The increasing penetration of smartphones across Asia Pacific countries is also expected to drive regional market growth.

By Regional & Country Level:

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy

Asia Pacific

• China
• Japan
• India
• Southeast Asia

Latin America

• Brazil
• Mexico

Middle East and Africa

• GCC
• Africa
• Rest of Middle East and Africa

Report Analysis	Details
Historical data	2018 - 2021
Forecast Period	2022 - 2028
Market Size in 2021:	USD 3.85 Billion
Base year considered	2021
Forecast Period CAGR %:	63.3%
Market Size Expected in 2028:	USD 119.41 Billion
Tables, Charts & Figures:	175
Pages	300
Key Players/Companies	Acko General Insurance, Lemonade, Friendsurance, ZhongAn Online P&C Insurance Co. Ltd., Oscar Health Insurance, Quantemplate Limited, BIMA, Trōv, Neos Insurance and Clover Health, and others.
Segments Covered	By Platform, By Deployment Model, By Technology, By Insurance Types, By Application
Regional Analysis	North America, U.S., Mexico, Canada, Europe, UK, France, Germany, Italy, Asia Pacific, China, Japan, India, Southeast Asia, South America, Brazil, Argentina, Columbia, The Middle East and Africa, Africa, Rest of the Middle East and Africa