The insurance is a crucial part of every individual, industry or business entity. As a sub-part of the Fintech industry, Insurtech is transforming the entire insurance industry along with insurer’s business practices. Earlier, any change in business processes in the insurance sector was invisible to policyholders, however, with the digitization and adoption of new technologies such as chatbots, AI, smartphone apps, and others these processes have become more transparent to policyholders.
Furthermore, the rising adoption of various analytical methods including predictive as well as descriptive, and others is driving the growth of the insurance market. In addition, growing demand for AI among insurance organizations to improve business operations is also another factor fuelling the demand for insurance solutions and services.
Growing need to provide better customer services and experience
The technological adoption has revolutionized various industries such as retail, healthcare, manufacturing, and others. In addition, the BFSI industry is also deploying digital software solutions to provide better services and enhance their business processes. Moreover, adoption of artificial intelligence (AI), machine learning (ML), chatbots, mobile apps, and other IoT technologies are helping insurers to create a user-friendly experience for their policyholders which is further helping them in reaching more customers. Furthermore, with the adoption of digital technologies insurers are able to provide 24x7 customer services and easy claims submission. Hence, such factors combined driving the growth of the InsurTech market.
Information security and privacy concerns
The advance in various payment processing technologies have simplifies the transaction process for the insurance companies. However, with the adoption of chatbots, smartphone apps, and payment processing apps the chances of policyholders' personal and essential information manipulation have also risen significantly. For example, with the adoption of such apps and digitization, fraudsters can send spam emails or pop-ups that can redirect users to different websites. In addition, they ask for account information or to update bank records & information on the duplicate websites, which in turn can lead to information breach or misuse of funds. Hence, such factors hampering the growth of the InsurTech market.
The BFSI industry segment is anticipated to dominate the market during the forecast period
The BFSI industry is anticipated to dominate the insurtech market during the forecast period. Increasing digitization initiatives and financial regulations set by various governments are the key factors driving the growth of this industry. In addition, the growing demand for advanced technologies such as AI, chatbots, and others to enhance customer experience is also one of the crucial factors driving the demand for insurtech solutions and services.
North America is anticipated to lead the market growth
North America region is expected to secure the highest market share during the forecast period. The market growth in this region is mainly accredited to the growing demand for advanced financial solutions among BFSI organizations. In addition, rising competitive rivalry in terms of service provided to customers is also fuelling the demand for insurance solutions and services in this region.
On the contrary, Asia-Pacific is estimated to hold the highest CAGR during the forecast period. The growth of the market in this region is majorly attributed to the increasing number of internet users and the growing demand for cloud technologies. Moreover, rising government initiatives to spread awareness about digital banking among people is also anticipated to provide opportunities for market growth in forthcoming years.
Key Market Players
- Damco Group
- DXC Technology Company
- Shift Technology
- Oscar Insurance
- Zhong An
Market Segments: Insurtech market
- By Insurance Type
- Commercial Insurance
- Property and Casualty Insurance
- By Service Type
- Support & maintenance services
- Consulting services
- Professional and Managed services
- By technology
- Machine learning
- Cloud computing
- Others (Drones, Smartphone Apps)
- By Industry Vertical
- Automotive & Transportation
- By Region
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia-Pacific
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
- South America
- Rest of South America
- North America
- Industry Associations
- Patent Websites
- Insurance Companies
- Company Annual Reports
- Company Websites
- Key industry leaders
- IEEE journals
- Technology consultants
- System Integrators
- BFSI experts
Key Questions Answered
- What are the key growth regions and countries?
- What are the important types and technologies being used?
- What are the market players doing, in terms of research and development?
- Which are the new applications for this market?
- What are the integrations happening?
- What are the recent news, developments, mergers, or large value deals?
- Software & solution providers
- Regulatory Authorities
- Research and Innovation Organizations
- Other Channel Partners