The global insurance market size is expected to increase from USD 2,750.9 Million in 2020 to USD 53.91 Billion in 2028 and register a CAGR of 44.3% over the forecast period. The benefit of insurance to reduce underwriting costs is significantly fueling market growth. An increasing number of IoT devices and sensors is playing a major role in the impact availability of real-time information to insurers for better underwriting/pricing. The use of drones has considerably changed the process of writing home insurance policies about the fire. Drones can provide footage of all sorts of things including, houses that might not be visible due to trees.
Insurance businesses are increasingly using predictive analytics to locate and target potential customers. Insights about typical demographics, behavioral patterns, and traits can be found in data obtained by insurance firms. This information enables insurers to target their marketing efforts for the highest return on investment. Additionally, insurance companies can utilize data and predictive analytics to find facts, occasions, or other elements that may have an impact on the outcome of a claim. Predictive analytics in insurance so helps claims departments reduce risks and streamline the claim process.
The expansion of venture capital opportunities is fueling more investment in the adoption of innovative technology in the insurance industry. Several insurance firms in the US have completed multiple investment rounds thanks to the improved opportunities for venture capital funding.
The rapidly expanding insurance business is a direct result of insurance firms investing more money in digitalization to enhance payment system functionality. The use of insurtech by insurance providers enables them to provide a streamlined billing system that may accept a variety of payment methods, increasing client flexibility and enhancing the effectiveness of the billing system. The use of automated billing systems can help prevent unintentional defaults by alerting clients and customers to upcoming premium payment due dates.
Further key findings in the report suggest:
Key participants in the market include Insurance Technology Services, Oscar Insurance, Wipro Limited, Dutilizingamco Group, Trov Insurance Solutions LLC, Haven Life Insurance Agency LLC, Shift Technology, DXC Technology Company, Quantemplate, and Alan SA.
The COVID-19 epidemic helped the insurance technology market flourish because customers now place a lot more value on insurance plans. Customers have chosen a variety of insurance plans, including health, home, personal, and other insurance. To provide consumers with superior tech-based services, insurance carriers have been using more and more advanced technical solutions as the market for insurance policies has grown. Because of this, the need for Insurtech solutions has dramatically expanded throughout the global health crisis.
One of the most traditional businesses, insurance is beginning to experience disruption from Insurtech firms operating abroad. For instance, Accenture, a provider of consultancy and professional services, predicted that in 2020, approximately 86% of insurers would like to innovate and develop current business models to meet rising insurance demand and keep a competitive edge. Additionally, in response to shifting business models, insurance providers all over the world are utilizing cutting-edge digital solutions to scale their operations and provide more individualized consumer experiences. Therefore, the rising digitalization of insurance companies’ current business models is boosting the demand for insurance.
Varied laws establish different norms and regulations in various jurisdictions, and financial centers have a more uniform approach to regulation. This becomes a key consideration for insurance companies as they develop solutions for a variety of regulations, including GDPR, MiFID II, and others. This causes an inter-regulatory conflict and, as a result, slows the expansion of the insurance market. For instance, the National Association of Insurance Commissioners (NAIC) in the United States controls and regulates the insurance business, whereas MiFID II laws are taken into consideration for insurance companies that fall under its purview in Europe. One of the main things impeding the market’s expansion is this.
Type Outlook (Revenue, USD Million; 2018-2028)
Technology Outlook (Revenue, USD Million; 2018-2028)
- Machine Learning
- Cloud Computing
- Robo Advisory
Service Type Outlook (Revenue, USD Million; 2018-2028)
- Support & Maintenance
- Managed Services
Industry Vertical Outlook (Revenue, USD Million; 2018-2028)
- Automotive & Transportation
Regional Outlook (Revenue, USD Million; 2018-2028)
- North America
- the Asia Pacific
- Latin America