Global InsurTech Market Research Report: Forecast (2021-2026)
Market Definition
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.
Market Insights
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.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2016-19 |
| Base Year: 2020 | |
| Forecast Period: 2021-26 | |
| CAGR | 35% |
| 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.
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Market Segmentation
Based on Application:
Of them all, Health & Medical Insurance acquired a substantial market share in recent years & is anticipated to prevail the same trend during the forecast period. It owes principally to the burgeoning health concerns among people and the increasing inclination of insurance companies toward digital platforms, propelling the demand for InsurTech to connect brokers, providers, & carriers in health insurances.
Additionally, to streamline claim processing, understand customer requirements, and provide instant solutions to the clients, several health insurance providers are actively utilizing Insurtech solutions and, in turn, promoting the overall market growth.
Besides, multiple life & accident insurance providers are also rapidly adopting InsurTech solutions owing to the growing prevalence of smartphones & applications to monitor, manage, maintain data across organizations & amplify the remedies for customers.
Based on the Technology:
Of them all, Blockchain is projected to be the fastest-growing technology in the Global InsurTech Market during the forecast period since it helps reduce the overall operational costs & enhance the working efficiency of insurance companies. With consensus algorithms, this technology provides insurers with provenance, immutability, & auditability to easily make them generate smart contracts.
Additionally, benefits like transparency, cost-effectiveness, quicker results, early detection & prevention of fraud, etc., are a few other prominent aspects propelling the demand for InsurTech solutions with Blockchain technology among insurers. Besides, integrating Blockchain with Artificial Intelligence (AI) in insurance can offer tailored coverage with precise threat analysis. Such facilities are soaring the demand for InsurTech with Blockchain technology & fueling the overall market growth.
On the other hand, Cloud Computing acquired a substantial share in the Global InsurTech Market in recent years. It owes principally to its benefits like easy deployment, resourcefulness, & widespread acceptance, among others, for insurance companies, coupled with the management of the large volume of data generated by the insurers.
Regional Landscape
Geographically, the Global InsurTech Market expands across:
Of them all, North America dominated the market with the largest share in recent years & is anticipated to prevail the same trend during the forecast period. It owes principally to the escalating adoption of InsurTech solutions to upgrade the entire insurance sector with the latest technological solutions, coupled with the rising customer inclination toward online platforms to avail of insurance services.
Additionally, benefits like liquidity, price transparency, etc., and innovations in insurance services for clients are also aiding in the adoption of InsurTech solutions across North America and fueling the overall market growth. Besides, the extensive presence & active participation of prominent players in the region and the mounting demand for end-to-end digital solutions are other crucial aspects expected to drive the market growth across North America in the coming years.
Furthermore, the growing need to address existing gaps like oversaturation, coupled with fierce competition among insurers, is projected to incorporate the digital transformation of the insurance sector and promote regional market growth during 2021-26.
On the other hand, Asia-Pacific is expecting the fastest market growth during 2021-26. It owes principally to the abundant presence of several prominent & emerging insurance companies laying out new policies & strategies across different countries in the region, with massive financial potential and soaring demand for technological up-gradation in InsurTech solutions to deliver enhanced services & affordable insurance premium plans to the customers.
Besides, the accelerating adoption of cloud technologies entwined with growing support from the governments of different countries in Asia-Pacific toward digitalization is encouraging several insurance companies to adopt these InsurTech solutions, which is another prominent aspect projected to drive the regional market during the forecast period.
Recent Developments by Leading Companies
Market Dynamics:
Key Driver: Rapid Digitalization to Transform Business Models in the Insurance Sector
The rapidly changing business models, constant technological advancements in services & solutions, & increasing support from the governments of different countries promoting digital transformation in the insurance industry are propelling the demand for InsurTech solutions substantially & globally. It, in turn, is displaying an increasing adoption of these solutions among insurance companies to leverage their offerings & expand reachability across different regions worldwide, thereby driving the Global Insurtech Market in the coming years.
Possible Restraint: FinTech Revolution to Challenge InsurTech
Fintech is an emerging technology enabling consumers or financial institutions to offer an extensive range of financial services in innovative, technologically advanced, and quicker ways than conventional methods. Additionally, insurance companies worldwide are well aware of the FinTech revolution & its capabilities to improve their business operations using technologies, such as machine learning, artificial intelligence, big data, etc. This aspect might challenge the adoption of InsurTech among insurers, posing a critical need to catch up with their competitors around customer-centricity & other emerging trends to become proactive in the industry, thereby hindering the Global Insurtech Market during 2021-26.
Growth Opportunity: Emerging Economies Displaying Untapped Potential
Several developing countries worldwide are displaying a plethora of opportunities for the leading players in the Global InsurTech Market to expand their reachability & offerings across various insurance companies and encourage them to adopt new business models in order to deliver enhanced services & policies to their customers.
Additionally, the growing integration of technologies like Artificial Intelligence, Blockchain, Machine Learning, Chatbots, & Big data, among others, into the insurance sector is anticipated to further augment the market growth by expanding the adoption of InsurTech solutions across domestic levels.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Global InsurTech Market is projected to grow at a CAGR of around 35% during 2021-26.
A. The Block Chain technology is anticipated to emerge as an area of remunerative opportunities for the leading players in the Global InsurTech Market during 2021-26.
A. Emerging economies displaying untapped potential, coupled with rapid digitalization to transform business models among insurance companies, are anticipated to generate significant growth opportunities for the Global InsurTech Market through 2026.
A. Post the pandemic, several insurance companies & prominent players in the Global Insurtech Market are likely to introduce new services, strategies, & solutions to boost the insurance industry, which, in turn, would significantly expand the global market in the years to come.
