InsurTech Market Growth Due to Increasing Digitalization of Insurance Services

The rising demand for the digitization of insurance services coupled with the simplification of the claims process is expected to drive the growth of global InsurTech market. Insurance companies are focusing on improving communication with customers and the ability to implement automated processes, this factor is expected to boost the demand for Insurtech in the forecast period

The Global InsurTech Market was valued US$ 5,480 Mn in 2020 is expected to reach US$ 11,234 Mn by 2027, with a growing CAGR of 10.80% during the forecast period (2020-2027).

Insurtech is the use of technological innovation, specifically designed to improve the efficiency of existing insurance models. By using technologies such as artificial intelligence and data analysis, insurtech solutions make product pricing more competitive. Insurance companies are widely adopting these solutions to drive economical, better, and faster operational results. Hence, the insurance industry is witnessing an increase in technology investment. Several InsurTech companies are focusing on using artificial intelligence (AI) with deep learning capabilities to effectively handle the tasks of agents and find an accurate combination of policies to complete personal insurance.

Increasing use of applications to integrate different policies into one monitoring and management platform is expected to drive the global InsurTech market growth during the forecast period. These applications can be widely used to create on-demand insurance for micro-events, such as borrowing an employee’s car. In addition, these apps can create tailored group coverage and encourage optimistic choices through group rebates.

The outbreak of COVID-19 is expected to have a positive impact on the global InsurTech market. Several players in the Insurtech market are reconsidering their short-term needs & long-term strategies. COVID-19 impact is augmenting the implementation of online platforms & new mobile apps to meet customer demand. It is expected that the health insurance market is expected to witness the highest growth rate in the next few years, as compared with other insurance industries (such as property and accident insurance, vehicles, etc.), the adoption rate of insurance technology for health is much higher.

North America dominates the InsurTech market, accounting for more than 37.0% of global revenue in 2020. On account of, increasing disposable income of its citizens, North America is witnessing a growing acceptance of InsurTech solutions. In addition, these solutions provide customizable and flexible insurance plans for property and health. Further, The wide presence of technology suppliers in North America and the escalating demand for end-to-end digital financial solutions are driving the growth of the market in this region.

The major key players for the global InsurTech market includes Damco Group; DXC Technology Company; Insurance Technology Services; Majesco; Oscar Insurance; Quantemplate; Shift Technology; Trov, Inc.; Wipro Limited; Zhongan among others.

Key Findings:

Based on product, the global InsurTech market is further divided into health insurance, business insurance, travel insurance, life insurance, home insurance, personal liability, car insurance, and speciality. The health insurance segment is expected to project the highest market share during the forecast period due to simplification of the claim process.
Based on technology, the segment is sub- divided into cloud computing, artificial intelligence, block chain, internet of things, big data & analytics, others. The cloud computing segment is anticipated to grow with the highest CAGR during the forecast period.
Based on deployment mode, it clouds segment dominated the InsurTech market in 2020 and is expected to continue its dominance throughout the forecast period because it gives various benefits like more scalability and cost effective.
Based on the insurance type, this segment is divided into P&C insurance, commercial insurance, others. P & C Insurance segment is expected to grow with the highest CAGR during the forecast period.
Based on platform, the global InsurTech market is bifurcated into broker, full stack insurers, agents. The brokers segment accounted for the largest share of the market.
Regionally, North America region captured a significant portion of the global InsurTech market in 2020 and is expected to dominate the global InsurTech market during the forecast period.

Recent News:

In June 2020, Finnish-U.S. InsurTech start up ‘Redkik’ raises investment to improve and transform marine cargo insurance in the transportation and supply chain industries.
In June 2021, INSHUR, a global InsurTech company announced the completion of additional “round B” financing, led by JVP and existing investors Viola Fintech and MTech Capital.
In March 2021, Singapore software products company, Azentio Software announced the signing of a binding agreement to acquire the insurance technology company Beyontec.
In June 2021, Hellas Direct, a technology-driven insurance company with offices in Greece and Cyprus, revealed that as part of the latest round of financing, it has received 32 million euros in capital, bringing the company's total funds raised to 56 million euros.
In April 2020, Insurtech Sprout.ai raised £8 million to meet global market demand.

The Global InsurTech Market Industry Segmentation:

By Product