Growing technology-driven new entrants and rising demand for digitization will boost the market.
The global insurance technology market is expanding rapidly and is expected to grow at a CAGR of 36.7% from 2019 to 2027, starting at US$ 1.28 Bn in 2018.
Innovation through new technologies is a key driver of change in the financial sector, which will further lead to immense proficiency gains with initial accomplishments marked by doubt and uncertainty. In the coming years, innovations coupled with new technological developments will likely drive the demand for insurance technology globally, owing to expedited delivery of services and lower transaction costs. Additionally, InsurTech has enticed large venture capital investments, and financial trends have made numerous start-ups consider their investors on a mass-scale and commercially viable basis. Moreover, insurance start-ups like Lemonade, Friendsurance, and Policygenius have attracted huge investments and developed better concepts for business development and models.
Furthermore, adopting innovations and technology will offer customers improved funding structures and an advanced customer experience that supports existing operations. The self-governing model that uses blockchains for automated contract execution would reap benefits for risk transfer tools like cat bonds and is likely to explore the market for InsurTechs further. However, insurgents have made substantial inroads through ingenious, powerful, and engrossing applications for solving specific problems that deliver high-quality and instinctual digital capabilities.
Market Synopsis
Type Analysis
Rising demand for digital platforms coupled with consulting and managed services will drive the demand for health insurance globally.
Insurance establishments within the health domain are concentrating on machine learning, artificial intelligence, and the internet of things (IoT) to provide advanced application systems, which will further improve customer experience and automate internal business processes. The rising demand for digital platforms that connect brokers, carriers, and providers, combined with health insurance exchanges, is expected to drive demand for the health segment on a global scale. Furthermore, health insurance businesses are focusing on rationalizing processes by implementing digital practices such as digital payments, automated underwriting, connected and collaborative care delivery, and a digital enrollment process, which will foster improvements in the healthcare system.
Moreover, numerous digital platforms are being offered by technology providers for insured people to take advantage of insurance health benefits offered by insurance firms. For instance, in June 2019, League Inc., a U.S.-based digital platform developer, launched its new digital health platform, which will offer a single access hub for insured people to select health policies that meet their preferences. Furthermore, InsurTechs also offer mobile apps that allow users to access information related to health issues like healthcare providers, payment processing systems, discounts, and offerings offered by insurance businesses.
Regional Analysis
Dominance is led by the large customization of products coupled with the presence of top InsurTech firms to drive market growth.
North America is projected to dominate the market for insurance in 2018. This dominance can be attributed to the increasing demand for end-to-end digitally advanced financial solutions and the significant presence of technology providers. Furthermore, the customization and flexibility offered by different insurance products like life insurance and health policies will allow customers to pick out the best plans. As a result, financial associations across North America are considerably focused on implementing digital competencies into their offerings to sustain a significant competitive advantage. For instance, rising investments in health insurance are measured to be sturdy and growing, withholding an investment of around 70% in the U.S. In the United States, insurtechs have benefited from a competitive and high VC funding market, with many insurance start-ups completing multiple funding rounds.
List of Companies Covered:
Damco Group
DXC Technology Company
Majesco
Oscar Insurance
Quantemplate
Shift Technology
Trōv, Inc.
Wipro Limited
Zhongshan Insurance
Friendsurance
Allay
Analyze Re
GetInsured
Bayzat
Many people purchased
Claim Di
CommonEasy
Key Industry Development:
Sapiens International Corp. announced its acquisition of a German-based insurance company, sum. Camo, for up to US$ 31.1 billion in January 2020, allowing an Israeli insurance company to expand its product offerings and services portfolio in Germany.
Legacy Marketing Group announced the release of its "A"-rated "IncomeMark SelectSM," a new fixed index annuity issued by Ameritas Life Insurance Corp, in March 2020.
In December 2019, EIS Group, a digital platform provider for insurers, announced the deployment of the "Digital Insurance Platform" for the leading New Zealand insurer, Tower Insurance.
Periods of History and Forecast
This study report represents the analysis for each segment from 2017 to 2027, considering 2018 to be the base year. The compound annual growth rate (CAGR) for each of the respective segments is estimated for the forecast period from 2019 to 2027. Segmentation
Type (2017-2027; USD billion)
Home
Health
Business
Automotive
Others (specialties, travel, etc.)
Type of Technology (2017-2027; US$ BN)
IoT
Block Chain
Cloud Computing
Machine Learning
Others (Robo Advisory, for example)
Services (US$ BN; 2017-2027)
Consulting
Managed Services
Support and Maintenance
End-of-life (2017-2027; $BN)
BSFI
Retail
Automotive
Government
Healthcare
Others (transportation, manufacturing, etc.)
Geography (2017-2027; $ billion)
North America (U.S., Canada)
Europe (United Kingdom, Germany, Spain, Italy, and the Rest of Europe)
Asia Pacific (Japan, China, India, and the Rest of Asia Pacific)
Rest of the World (Latin America, the Middle East, and Africa)
To better understand the insurance technology market, the current report also includes qualitative and quantitative market valuation factors such as key market drivers, market trends, restraints, and opportunities. In addition, the global report also represents the competitive landscape based on market initiatives and strategies, product portfolios, and business strengths.
Frequently Asked Question:
The market for Insurance Technology Market is expected to reach USD$ XX Mn in 2027.
The Insurance Technology Market is expected to see significant CAGR growth over the coming years, at 36.7%.
The report is forecasted from 2019 -2027.
The base year of this report is 2018.
Damco Group,DXC Technology Company,Majesco,Oscar Insurance,Quantemplate,Shift Technology,Trōv, Inc.,Wipro Limited,Zhongshan Insurance,Friendsurance. are some of the major players in the global market.
