The insurtech market is anticipated to grow from a meagre market value of US$ 12.5 Bn in 2021 to a net worth of US$ 165.4 Bn in 2032. During the foreseeable period, a CAGR of 25.9% is expected, which is remarkable.
There is a high demand for general insurance plans offered by numerous organisations worldwide as a result of the general public’s growing awareness of the advantages of insurance policies. With the shifting economic landscape, insurance businesses have also grown their market presence by implementing digital insurtech or insurance technology infrastructure.
The ability of insurtech firms to provide customers with tailored plans has grown over the years of service and development of commercial insurance. The adoption of such technologies for consumer data collection and analysis by insurtech life insurance companies has increased the market’s appeal to businesses further.
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The market has become more fragmented and fiercely competitive as a result of the entry of numerous small, regional firms operating in various categories, such as insurtech vehicle insurance or insurtech house insurance companies.
By forming alliances and working together with banking and financial institutions to introduce new, specialised commercial insurance insurtech solutions, the majority of the important players are expanding their market share.
The business models of insurance providers around the world have changed as a result of the rapid digitization of all significant service sectors of the economy. The expansion of professional and consulting services offered to potential clients via online channels has called for the incorporation of insurance technology solutions, further boosting the growth of the global insurtech market.
According to the market survey report of the EIS group for Insurance companies, almost 59% of the companies were found to have increased their spending on establishing digital infrastructure. This includes a record proliferation of P&C insurtech companies in the global market.
- As per the market analysis report, the absolute growth of the global insurtech market size in terms of value is predicted to be around US$ 148.8 Bn over the forecast years 2022 to 2032.
- As the concept of insurtech insurance companies is expanding to new areas of service, the solution segment is growing at a faster rate than the service segment. The CAGR predicted for the solution segment is nearly 25.8% for the coming decade.
- On the basis of various technologies adopted by life insurance tech companies, cloud computing has emerged to be the most attractive segment in the present market. The estimated growth of this segment over the forecast years is nearly 25.2%.
- US market holds the dominant position in the global market for having the highest amount of insurtech capital, valued at about US$ 6 Bn in the year 2022. It is also the top-performing country with a CAGR of 25.6% that is predicted to reach the net worth of the regional insurtech market up to US$ 58.6 Bn by the end of this forecast period.
The major players operating in the global insurtech market include Damco Group, DXC Technology Company, Majesco, Oscar Insurance, Quantemplate, Shift Technology, Trov Insurance Solutions, LLC, Wipro Limited, and Zhongan Insurance, among others.
- One of the top insurance companies in the USA named, Universal Fire & Casualty Insurance Company, announced to accept cryptocurrency payments for premiums, starting a new business model for home insurance insurtech companies in the US market. Integration of such advanced digital facilities and blockchain technologies is expected to further boost the global insurtech market.
- An automobile insurance company named Metromile also announced in December 2021 to accept cryptocurrency from its customers to pay their premiums and claim payments. This new development is anticipated to give way to some new opportunities in the domain of insurtech car insurance services in the coming days.
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By Deployment Model
- Artificial Intelligence
- Cloud Computing
- Big Data & Business Analytics
By End User
- Life & Health Insurance
- Property and Casualty (P&C) Insurance
- Product Development & Underwriting
- Sales & Marketing
- Policy Admin Collection & Disbursement
- Claims Management