The global IoT insurance market is projected to witness significant growth from 2021 to 2031 (forecast period). The surge in the adoption of IoT products among businesses to obtain data from a range of sources is an important factor expected to drive the global IoT insurance market. Moreover, increased usage of telematics devices in the transportation and automotive sectors is projected to boost the global IoT insurance market during the forecast period.
Furthermore, insurance companies’ heavy investment in IoT technology to enhance operational efficiency is expected to support global market growth. During the forecast period, the insurance industry’s increased adoption of advanced technologies such as machine learning and artificial intelligence is likely to provide lucrative prospects for the expansion of the global IoT insurance market.
IoT Insurance Market – Competitive Landscape
Major players active in the worldwide IoT insurance market include Google LLC, Accenture PLC, SAP SE, Aeris Group Ltd, Concirrus, International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, Microsoft Corporation, and Telit. Market players are growing their customer base and increasing their market share by improving their product lines through strategic collaboration and acquisitions.
For instance, LexisNexis (U.S.) and Yonomi Smart Home (U.S.) collaborated in October 2020 to develop a unique, comprehensive home insurance internet of things (IoT) solution. It includes a smartphone app that registered policyholders can download. It leverages smartphone and device sensors to discover popular IoT devices in the house, generating an information feed to LexisNexis risk solutions.
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IoT Insurance Market – Trends and Opportunities
Increased awareness of IoT technology due to its multiple advantages such as flexibility, security, scalability, and recovery is projected to boost IoT product adoption across developed and emerging countries. Some insurance companies are leaning toward unified customization solutions, which has encouraged the global usage of IoT products.
Furthermore, the increase in demand for IoT products among emerging economies due to rising connected devices in the automotive and healthcare industries is expected to promote growth in the global IoT insurance market. Prominent players, particularly cloud service suppliers, are working to create APIs (Application Programming Interface) to make it easier for insurance companies to incorporate operations and applications into the cloud. Several market companies have developed novel APIs in emerging Asia Pacific and Latin American countries in order to improve their valuation and revenue prospects, which is anticipated to propel the global IoT insurance market.
Moreover, the global IoT insurance market is projected to experience considerable growth during the forecast period due to the increased use of cloud platforms among insurance businesses around the world. Several insurance businesses are increasingly using cloud-based platforms due to their multiple advantages, which include increased organization stability and scalability and decreased infrastructure expenses.
The advent of COVID-19 is likely to have a favorable impact on the expansion of the IoT insurance market. This is due to an increase in the use of digital technology by insurance providers to obtain client data for claim management. During the current COVID-19 outbreak, IoT technology is assisting insurance businesses in securely collecting patient health data via mobile phones, wearable devices, and sensors in order to provide COVID-19 insurance services to clients.
IoT Insurance Market – Regional Landscape
The North America IoT insurance market is projected to expand due to increased awareness of smart devices among insurance companies and speedier adoption of IoT products in the United States. Furthermore, some major insurance companies, like Progressive, Liberty Mutual, and State Farm, have been utilizing IoT technologies to increase the efficiency of their risk assessment processes.
Moreover, the IoT insurance market in Asia Pacific is anticipated to grow at a rapid pace during the forecast period. The expanding use of IoT-enabled wearables and fitness brands and rising healthcare insurance claims are expected to drive market growth in the region.