InsurTech is a technology designed principally to bring operational efficiency in the insurance sector. These solutions are meant to cater to the creation, distribution, and administration of an extensive range of operations associated with insurance businesses and make the existing models more advanced & efficient.
With the integration of technologies like Artificial Intelligence (AI) & Data Analytics, insurance companies are able to price their services more competitively for cheaper & faster operational results. Therefore, the insurance sector is adopting & investing substantially in InsurTech technology.
The Global InsurTech Market is projected to grow at a CAGR of around 35% during the forecast period, i.e., 2021-26. The market is driven principally by an increasing inclination of insurance companies on digitalization to yield operational efficiency while providing services like faster claim processing, automated claims process, enhanced coordination amongst parties, and improved communication platform, among others, to their customers.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Regions Covered||North America: USA, Canada, Mexico|
|South America: Brazil, Others|
|Europe: Germany, UK, France, Italy, Spain, and Others|
|Asia-Pacific: China, India, Japan, South East Asia, Australia|
|Middle East & Africa: GCC countries, South Africa and Others|
|Key Companies Profiled||Trov, Inc., Oscar Insurance, Policy Bazaar, Quantemplate, Clover Health Insurance, Tractable, Anorak Technologies, Majesco, Cytora Ltd., Zhongan Insurance|
|Unit Denominations||USD Million/Billion|
Such functions are done effectively with the help of technologies like Artificial Intelligence (AI), Machine Learning (ML), & predictive analysis. Therefore, insurance companies worldwide are increasingly utilizing InsurTech solutions in their business models to reduce insurance rates, quickly detect & prevent frauds, minimize underwriting costs, enhance billing capabilities, & provide specialized insurances to their clients, thereby driving the global market.
Moreover, the integration of technologies like Artificial Intelligence in InsurTech solutions by insurance companies is swiftly gaining momentum. It is principally to effectively & efficiently manage tasks with the help of digital assistants to streamline how agents interact with customers, detect policies to meet individual coverage, and enable insurers to analyze & price policy premiums faster with greater precision.
Impact of Covid-19 on the Global InsurTech Market
The Covid-19 pandemic in 2020 had a decelerating effect on most industries worldwide. However, the Global InsurTech Market witnessed an upswing amidst the crisis. While the growing severity of the Covid-19 virus displayed an increasing number of cases & deaths that led the governments of different countries worldwide to impose stringent movement restrictions & lockdown, the importance of insurance policies surged dramatically.
A plethora of people began opting for different insurance policies like health, home, & personal protection, among others, to secure a future for those that are behind. This rise in the demand for insurance services propelled several insurance companies to utilize technologically advanced solutions, which, in turn, fueled the demand for InsurTech solutions and promoted the growth of the Global InsurTech Market amidst the pandemic.
The rapid adoption of these solutions among several insurance companies was dramatically increasing to build a technology-based service platform for customers. These solutions provided various benefits like easy procedures to process claims, reduce policy rates, prevent fraud activities, & reduce the underwriting costs, etc. Additionally, observing the pandemic situation & its consequence on the lives of people, insurance companies began reconsidering their long-term strategies & short-term needs.
Besides, the sudden shift to work-from-home displayed an increasing inclination of insurers toward online platforms & mobile applications to suffice the customer needs & expand the scalability. Moreover, with the gradual betterment in the pandemic situation and a reducing number of Covid-19 cases, governments worldwide have begun uplifting restrictions and allowing the recommencement of business operations associated with the InsurTech industry since 2021.
The prominent players in the market are now exploring their abilities in the field of InsurTech by introducing new services, strategies, & solutions, which, in turn, would churn out lucrative growth opportunities for the Global InsurTech Market in the coming years.