“Growing technology-driven new entrants and rising demand for digitization will boost the market.”
The global insurance technology market is growing proficiently, projected to grow at a CAGR of 36.7% during the expected period from 2019 to 2027, starting from 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 adeptness gains, with initial accomplishment 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 cost. Additionally, InsurTech has enticed large venture capital investments, and financial trends have made numerous start-ups consider their investors upon a mass-scale and commercially viable basis. Moreover, insurance start-ups like Lemonade, Friendsurance, and Policygenius have engrossed huge investments along with a better understanding and concept 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 reaped for risk transfer tools like cat bonds and is likely to explore the market for InsurTechs further. However, InsurTechs have made substantial inroads through ingenious powerful, and engrossed applications for solving specific problems to deliver high-quality and instinctual digital capabilities.
Market Synopsis
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Type Analysis
“Rising demand for digital platform coupled with consulting & 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 coupled with exchanges in health insurance is predictable to impel the 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 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 care 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 rendering to their preferences. Furthermore, InsurTechs also offers 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.
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Regional Analysis
“Dominance is led by the large customization products coupled with the presence of top InsurTech firms to drive the market growth.”
North America is projected to dominate the market for insurtech 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 benefit. For instance, rising investments in health insurance is measured to be sturdy and growing, withholding an investments of around 70% in the U.S. In the United States, InsurTechs have benefited from a competitive and high marketplace for VC funding, and many insurance start-ups have completed a number of funding rounds.
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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
- Bought By Many
- Claim Di
- CommonEasy
Key Industry Development:
- In January 2020, Sapiens International Corp. announced its acquisition with a German-based insurance company sum. cumo for up to US$ 31.1 Bn, which will further enable an insurance company of Israel to expand its product offerings and services portfolio in Germany.
- In March 2020, the Legacy Marketing Group announced the release of its” A“ rated “IncomeMark SelectSM,” a new fixed index annuity which Ameritas Life Insurance Corp issued.
- In December 2019, EIS Group, a digital platform provider for insurers, announced the deployment of the “Digital Insurance Platform” for leading New Zealand insurer, Tower Insurance.
Historical & Forecast Period
This study report represents analysis for each segment from 2017 to 2027, considering 2018 to be the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period from 2019 to 2027.Segmentation
Type (2017–2027; US$ Bn)
- Home
- Health
- Business
- Automotive
- Others (Speciality, Travel, etc.)
Technology Type (2017–2027; US$ Bn)
- IoT
- Block Chain
- Cloud Computing
- Machine Learning
- Others (Robo Advisory, etc.)
Services (2017–2027; US$ Bn)
- Consulting
- Managed Services
- Support & Maintenance
End-use (2017–2027; US$ Bn)
- BSFI
- Retail
- Automotive
- Government
- Healthcare
- Others (Transportation, Manufacturing, etc.)
Geography (2017–2027; US$ Bn)
- North America (U.S., Canada)
- Europe (U.K., Germany, Spain, Italy, Rest of Europe)
- Asia Pacific (Japan, China, India, Rest of Asia Pacific)
- Rest of the World (Latin America, Middle East & Africa)
The current report also comprehends qualitative and qualitative market valuation factors such as key market drivers, market trends, restraints, and opportunities to understand the insurance technology market better. In addition, the global report also represents the competitive landscape based on market initiatives and strategies, product portfolio, and business strengths.
