Insurtech Market Research Report 2024

Insurtech Market Synopsis

Insurtech Market Size Was Valued at USD 7.67 Billion in 2023 and is Projected to Reach USD 112.72 Billion by 2032, Growing at a CAGR of 34.8% From 2024-2032.

Insurtech leverages innovative technologies such as artificial intelligence, machine learning, big data analytics, and blockchain to improve the insurance sector by merging insurance with technology.

• Insurtech is transforming the insurance sector in numerous significant ways. It improves customer satisfaction by offering tailor-made, easy-to-use online platforms for buying policies, submitting claims, and accessing information.
• Insurtech enhances efficiency in the process of underwriting and risk evaluation using sophisticated data analytics and AI algorithms, allowing for quicker and more precise decision-making and allowing for faster and more effective processing of claims and identification of fraud through the use of automation and machine learning.
• Additionally, Insurtech leverages big data analysis to obtain important information on customer actions, industry patterns, and risk characteristics, which influences product advancement and promotional tactics.
• Insurtech supports risk prevention and mitigation by using IoT devices to monitor and prevent risks, ultimately decreasing the number and seriousness of claims.

Top Active Players Involved Are:

Policy Bazaar (India), ZhongAn Online Property & Casualty Insurance Co. Ltd (China), Clover Health Insurance (U.S.), Acko General Insurance Limited (India), Damco Group (India), DXC Technology Company (U.S.), Insurance Technology Services (Unknown), Majesco (U.S.), Oscar Insurance (U.S.), Quantemplate (Unknown), Shift Technology (France), Trōv, Inc. (U.S.), Wipro Limited (India), Acko General Insurance (India), Lemonade (U.S.), Friendsurance (Germany), OutSystems (Portugal), Zhongan Insurance (China), Root Insurance (U.S.), Root Insurance (U.S.), WeSure (China), PolicyGenius (U.S.), Ago Insurance (Turkey), Fizzy (France), Bought By Many (UK), and Other Active Players.

Insurtech Market Trend Analysis

Growing Reliance on Data Analytics and The Use Of AI

• Insurance companies are reaping the rewards of data analytics and AI technology in different areas. These developments enable better underwriting and risk assessment through analyzing large volumes of data, resulting in more precise risk evaluation and custom insurance offerings.
• Enhancing the customer experience is achieved by providing personalized services and smooth processes, leading to higher customer satisfaction and loyalty. Efficiency in handling claims is enhanced by automation and artificial intelligence technologies, which simplify procedures and enhance detection of fraud.
• Insurers can apply data analytics and artificial intelligence to create accurate pricing and products using customer data and market trends. Sophisticated risk management tactics are enforced to foresee risks and anticipate patterns of loss by using IoT devices for collecting data in real-time.
• Automation helps achieve operational efficiency by reducing expenses and enabling efficient utilization of resources.

Opportunity

Rising Demand to Automate Operational Processes

• Insurtech solutions offer a range of advantages to the insurance sector. Automation and advanced technologies can simplify and automate traditional manual tasks in policy underwriting, claims processing, and regulatory compliance. This results in insurance companies experiencing quicker processing times, reduced mistakes, and savings on expenses.
• Insurtech solutions assist in streamlining processes and eliminating manual duties, which ultimately results in lower administrative costs and enhanced resource distribution, leading to increased profit margins and competitiveness in the market.
• The automation improves the overall customer experience by offering policyholders quicker policy issuance, immediate quotes, real-time updates on claims, and effective communication channels. Insurtech platforms provide the capability to grow and adjust, enabling insurance companies to manage growing demand and intricate processes without compromising on quality.
• These insurtech solutions are essential for changing the operational efficiency of the insurance industry, lowering expenses, monitoring risks, and guaranteeing compliance with regulations.

Insurtech Market Segment Analysis:

Insurtech market is segmented on the basis of Offering, Technology, End-user, and Application.

By Technology, Cloud Computing Segment Is Expected to Dominate the Market During the Forecast Period

There are five segments by technology such as artificial intelligence, cloud computing, blockchain, big data & business analytics, and IoT. Among these, the cloud computing segment is expected to dominate the market during the forecast period.

• Cloud computing offers insurers the ability to scale and be flexible by adjusting computing resources to meet workload requirements. This affordable option removes the necessity of having on-site equipment, allowing for more financial resources to be dedicated to innovation and expansion.
• Centralized data and real-time communication help improve collaboration and connectivity. Measures for disaster recovery and data security guarantee the safeguarding of confidential information.
• Insurers have the ability to quickly implement new solutions and be innovative by utilizing insurtech options, which help in gaining a competitive advantage. Cloud-based solutions provide accessibility and mobility, enabling professionals to retrieve information from any location, ultimately boosting productivity and customer service.
• The cloud computing allows insurers to adjust to evolving requirements, lower expenses, enhance teamwork, boost security, innovate rapidly, and adopt mobile workspaces.

By End-user, Life & Health Insurance Segment Held the Largest Share In 2023

There are six segments by end-user such as life & health insurance, property and casualty insurance, auto insurance, buildings insurance, marine insurance, and liability insurance. Among these, life & health insurance segment held the largest share in 2023.

• The life and health insurance sector concentrate on people's personal welfare by offering insurance for life, health, and disability, catering to the growing need as individuals emphasize health and financial stability.
• There is an increasing demand for extensive insurance coverage to safeguard individuals and their loved ones due to the increasing number of elderly people around the world and longer lifespans.
• Advancements in insurtech technology have transformed the industry by introducing new products such as telehealth and wearable devices. Regulatory mandates guarantee consumer safety, while insurtech solutions aid in meeting requirements with advanced automation and data management.
• Increased knowledge about healthcare has caused people to look for ways to prevent health issues and full coverage insurance options, increasing the need for life and health insurance offerings.

Insurtech Market Regional Insights:

North America is Expected to Dominate the Market Over the Forecast Period

• North America is at the forefront of technological progress, mainly in the insurance sector, due to its strong digital infrastructure. The established insurance sector and extensive client base provide a strong base for implementing Insurtech solutions.
• The area also draws significant venture capital funding in the Insurtech industry, driving creativity and growth in the market. Positive regulations benefit Insurtech firms by stimulating competition and ensuring consumer safety.
• In North America, there is a growing demand from customers for convenient, personalized, and technology-driven insurance solutions, which Insurtech companies are addressing through user-friendly mobile applications and tailored products.
• The growth of the Insurtech market in the region is being propelled by this customer-focused strategy.

Insurtech Market Active Players

• Policy Bazaar (India)
• ZhongAn Online Property & Casualty Insurance Co. Ltd (China)
• Clover Health Insurance (U.S.)
• Acko General Insurance Limited (India)
• Damco Group (India)
• DXC Technology Company (U.S.)
• Insurance Technology Services (Unknown)
• Majesco (U.S.)
• Oscar Insurance (U.S.)
• Quantemplate (Unknown)
• Shift Technology (France)
• Trōv, Inc. (U.S.)
• Wipro Limited (India)
• Acko General Insurance (India)
• Lemonade (U.S.)
• Friendsurance (Germany)
• OutSystems (Portugal)
• Zhongan Insurance (China)
• Root Insurance (U.S.)
• Root Insurance (U.S.)
• WeSure (China)
• PolicyGenius (U.S.)
• Ago Insurance (Turkey)
• Fizzy (France)
• Bought by Many (UK) and Other active Players.

Key Industry Developments in the Insurtech Market:

• In May 2024, Indian Insurtech company PolicyBoss.com has introduced two new features: Live Brokerage and InstaPay. These tools aim to provide Point of Sales Persons (PoSPs) registered with the platform with immediate access to their earnings from insurance policy sales.
• In May 2024, Janover, an AI-enabled platform for commercial real estate transactions, has announced the launch of Janover Insurance, its new insurtech subsidiary for commercial property insurance and more. It has been granted insurance licenses in Texas and Florida, and has multiple applications in progress in several other states.