PUBLISHER: The Business Research Company | PRODUCT CODE: 1414323
PUBLISHER: The Business Research Company | PRODUCT CODE: 1414323
“InsurTech (Insurance Technology) Global Market Report 2024 ” from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on insurtech (insurance technology) market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for insurtech (insurance technology)? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? “The insurtech (insurance technology) market global report ” from The Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
InsurTech, short for insurance technology, refers to the utilization of technological innovations and advancements to enhance the insurance industry. It encompasses a variety of technological solutions, platforms, and applications aimed at improving efficiency, customer experience, and risk management within the insurance sector.
The primary categories of insurance technologies include solutions and services. A solution pertains to a specific product, system, or approach designed to address a particular problem or fulfill a specific need. Insurance technology solutions are employed to establish, expand, and operate the insurance sector, addressing various challenges and opportunities within the industry. These solutions find application across different types of insurance, including commercial insurance, property and casualty insurance, health insurance, life insurance, and others. They are deployed both on-premises and in the cloud. Various insurance technologies encompass cloud computing, blockchain, big data and analytics, artificial intelligence, internet of things (IoT), machine learning, and others. These technologies are utilized by diverse sectors such as banking, financial services, and insurance (BFSI), healthcare, manufacturing, government, retail, and others.
The InsurTech (Insurance Technology) market research report is one of a series of new reports from The Business Research Company that provides InsurTech (Insurance Technology) market statistics, including InsurTech (Insurance Technology) industry global market size, regional shares, competitors with an InsurTech (Insurance Technology) market share, detailed InsurTech (Insurance Technology) market segments, market trends and opportunities, and any further data you may need to thrive in the InsurTech (Insurance Technology) industry. This InsurTech (Insurance Technology) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The insurtech (insurance technology) market size has grown exponentially in recent years. It will grow from $14.37 billion in 2023 to $19.58 billion in 2024 at a compound annual growth rate (CAGR) of 36.2%. The expansion observed in the historical period can be attributed to the digital transformation in the insurance sector, heightened consumer expectations, advancements in data analytics and risk assessment, regulatory changes and compliance requirements, as well as the emergence of InsurTech startups.
The insurtech (insurance technology) market size is expected to see exponential growth in the next few years. It will grow to $68.61 billion in 2028 at a compound annual growth rate (CAGR) of 36.8%. The anticipated growth in the forecast period can be attributed to an increased emphasis on personalization, the expansion of IoT in insurance, the adoption of blockchain technology, the integration of artificial intelligence (AI), and the evolving landscape of the cyber insurance market. Key trends expected in the forecast period include the integration of big data analytics, the development of regulatory technology (RegTech) solutions, the provision of personalized and on-demand insurance products, AI-powered claims processing, and a strategic focus on ecosystem integration.
The anticipated rise in the demand for insurance is set to drive the growth of the insurtech (insurance technology) market in the foreseeable future. Insurance, functioning as a protective contract against financial loss between an individual or entity (the insured) and an insurance company (the insurer), is witnessing increased adoption of insurtech by insurance companies. This technological integration is aimed at enhancing operations, improving customer experiences, and boosting overall efficiency. For instance, in 2021, private health insurance spending in the United States, as reported by the Centers for Medicare & Medicaid Services (CMS), increased by 5.8% to reach $1,211.4 billion, constituting approximately 28% of the total national health expenditure (NHE). The statistics further indicate that 91.1% of people had health insurance, with expectations that 90.5% will be insured by 2030. Hence, the growing demand for insurance is a key driver for the insurtech market.
The escalating occurrence of cyber-attacks is poised to fuel the growth of the insurtech market. Cyberattacks, involving the deliberate exploitation of computer systems, networks, or devices to compromise data integrity, confidentiality, or availability, have led insurtech companies to develop specialized cyber insurance products. These products utilize advanced technologies for accurate risk assessment, provide loss prevention services, and collaborate with cybersecurity firms. For instance, in July 2022, the Federal Reserve System reported a 75% increase in cyberattacks in 2021, with ransomware attacks resulting in reported losses of $1.2 billion for financial institutions in the United States. The increasing frequency of cyber-attacks is a significant factor driving the insurtech market.
The adoption of robotics ecosystems stands out as a notable trend gaining popularity in the insurtech market. Companies within the insurtech sector are incorporating robotic technologies to maintain their market positions. For instance, in September 2022, Koop Technologies launched a robotic errors and omissions insurance product tailored specifically for the insurtech market. This product addresses risks associated with automation and is targeted at manufacturers, operators, and service providers of robots and off-road autonomous vehicles. The unique risk assessment process provides customized ratings based on specific software and hardware attributes, focusing on the subset of off-road robots.
Major companies operating in the insurtech market are introducing innovative products that incorporate technological advancements, including SAP, to enhance profitability. SAP offers integrated software solutions to help insurers manage their business processes efficiently, improve customer experiences, and stay competitive in the rapidly evolving industry. For instance, in July 2022, Ernst & Young Global Limited launched the EY Insurance Industry Cloud for SAP solutions. This solution aims to assist insurance companies in overcoming business challenges and enhancing long-term value through innovation and financial modernization. The finance, risk, and actuarial platform, based on SAP Data Warehouse Cloud, facilitates the seamless import of SAP data into financial software.
In April 2023, Zinnia, a US-based annuity insurance technology and digital services company, acquired Policygenius for an undisclosed amount. This strategic acquisition enables Zinnia to combine the digital services and technology of both businesses, creating a more effective and user-friendly platform for insurance clients. Policygenius, a US-based digital insurance marketplace, brings valuable expertise to the partnership.
Major companies operating in the insurtech (insurance technology) market report are Damco Group, DXC Technology Company, Shift Technology, Wipro Limited, Oscar Insurance Corporation, Quantemplate, Zhongan Insurance Company, Trov Insurance Solutions LLC, Clover Health Insurance, Insurance Technology Services, EIS Group, Acko General Insurance Company, Policy Bazaar, Simplesurance GmbH, Amodo, MetLife Inc. , The Travelers Companies Inc., Root Insurance, Next Insurance, American Well Corporation, Hippo Insurance, Government Employees Insurance Company, Haven Life, Nationwide Immigration Services Pvt Ltd ., Clearcover Insurance, Slice Labs Inc., Bright Health Diagnostic, Kin Insurance, Gusto Inc., Collective Health
North America was the largest region in the InsurTech (insurance technology) market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global InsurTech (insurance technology) market report during the forecast period. The regions covered in the insurtech (insurance technology) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the insurtech (insurance technology) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The insurtech (insurance technology) market includes revenues earned by entities by providing insurance technology services for business insurance, travel insurance, and auto insurance. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The insurtech (insurance technology) market consists of sales of insurance technology products, including insurance automation tools, digital insurance platforms, and Internet of Things (IoT) devices. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.