The adoption of advanced technologies including AI in the insurance industry is anticipated to drive the growth of the Insurtech market
Covid-19 Impact & Market Status
The disease has expanded to almost 100 countries around the world since the COVID-19 viral outbreak in December 2019, prompting the World Health Organization to declare it a public health emergency. The global effects of the coronavirus illness 2019 (COVID-19) are already being seen, and the infotech industry will be considerably impacted in 2020.
The global Insurtech market is expected to develop US$ 165.4 Bn by 2032, at a compound annual increase in price (CAGR) of 25.9% throughout the forecast period.
COVID-19 has the potential to have three major effects on the global economy: directly impacting production and demand, causing supply chain and market disruption, and having a financial impact on businesses and financial markets.
Flight cancellations travel bans, and quarantines; restaurants closed; all indoor events restricted; over forty countries declared states of emergency; massive supply chain slowdown; stock market volatility; falling business confidence, growing panic among the population, and uncertainty about the future have all been impacted by the COVID-19 outbreak.
According to our findings, there was a favorable impact on market growth during and after the COVID-19 era. Although issues such as high investment costs may stifle market expansion, the need to improve corporate efficiency is pushing the InsurTech market. Our analysts analyzed historical data to determine the primary market drivers and the impact of the COVID-19 pandemic on the InsurTech industry. The comprehensive examination of the drivers will aid in determining end goals and fine-tuning marketing strategies to acquire a competitive advantage.
The global Insurtech market report study through in-depth research offers a comprehensive market outlook with analysis of Covid-19 impact. The report examines the impact of a pandemic on the economic growth of the market, developments, applications, and regions operating in the global crypto market. Recovery strategies implemented by market players during the covid-19 pandemic are studied. A detailed study of the Insurtech market documented in this report helps market players make well-informed decisions.
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. Large Enterprises Applications to Ensure Revenue Maximization
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 are also anticipated to provide opportunities for market growth in forthcoming years.
The adoption of advanced technologies including AI in the insurance industry is anticipated to drive the growth of the Insurtech market.
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 insurers’ 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, the growing demand for AI among insurance organizations to improve business operations is also another factor fuelling the demand for insurance solutions and services. The development of new tools like applicant finding, candidate relationship management, advertisement management, and LinkedIn and Facebook integration are all projected to contribute to the growth of the recruitment software market.
These factors collectively influence the thumping growth of the global Insurtech market.
Growing need to provide better customer services and experience
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 its business processes. Moreover, the 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 can provide 24x7 customer services and easy claims submission. Hence, such factors combined to drive the growth of the InsurTech market.
Information security and privacy concerns
The advance in various payment processing technologies has simplified the transaction process for 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 duplicate websites, which in turn can lead to information breaches or misuse of funds. Hence, such factors hamper the growth of the InsurTech market.
The top companies proving Insurtech are Damco Group, DXC Technology Company, Insurance Technology Services, Majesco, Oscar Insurance, Quantemplate, Shift Technology, Tr?v, Inc., Wipro Limited, Zhongshan Insurance among all the emerging and well-established players.
These companies to stay ahead of the competitive edge are undertaking strategic initiatives such as mergers and acquisitions, and expansions for research and development in Insurtech.
Latest Innovations in the Global Insurtech Market: a Snapshot
- Insurtech companies are also adopting deep learning-capable artificial intelligence (AI) to help agents manage their obligations more swiftly and find the correct mix of policies to complete an individual's coverage, according to data.
- Hyperautomation, which combines machine learning (ML), artificial intelligence (AI), and robotic process automation (RPA), is already gaining traction among rapidly scaling insurtech startups looking to differentiate themselves in the market by offering quick services, mobile technology, and low operating costs.
The increased use of applications to consolidate diverse policies into a unified platform for monitoring and management is likely to fuel the insurtech market expansion during the forecast period of 2021 to 2028.
Insurtech Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2031||US$ 165.4 Bn|
|Growth Rate||CAGR of 25.9 % during 2022-2031|
|Segment Covered||By Offering, By Deployment Model, By Technology, By End User, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and Africa|
|Key Players Profiled||Damco Group, DXC Technology Company, Majesco, Oscar Insurance, OutSystems|
Key Segments of the Global Insurtech Market
Insurance Type Overview, 2018-2028 (USD Billion)
- Commercial Insurance
- Property and Casualty Insurance
Service Type Overview, 2018-2028 (USD Billion)
- Support & maintenance services
- Consulting services
- Professional and Managed services
Technology Overview, 2018-2028 (USD Billion)
- AI Machine learning
- Cloud computing
- Others (Drones, Smartphone Apps)
Industry Vertical Overview, 2018-2028 (USD Billion)
- Automotive & Transportation
Regional Overview, 2018-2028 (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
The Middle East and South Africa