The Global Insurtech Market Size valued for USD 8.8 Billion in 2021 and is projected to occupy a market size of USD 166.4 Billion by 2030 growing at a CAGR of 39.1% from 2022 to 2030.
Insurtech, or insurance technology, is a growing phenomenon that has allowed the insurance industry to reconnect with a massive customer base comprised of High Net Worth individuals (HNWI), upper-middle-income individuals, and lower-middle-income individuals. Insurtech platforms have the potential to assist insurance companies in improving their relevance to customers and regaining their trust. It will help with customer engagement. COVID-19 positively impacted the insurtech market, as the value of insurance plans among customers has skyrocketed. Customers were able to choose from a wide range of insurance policies, including health and life insurance, personal insurance, home insurance, and more, which increased sales of insurtech solutions significantly.
Insurtech Market Report Statistics
Global Insurtech Market Dynamics
Insurtech Market Report Coverage
|Insurtech Market Size 2021||USD 8.8 Billion|
|Insurtech Market Forecast 2030||USD 166.4 Billion|
|Insurtech Market CAGR During 2022 - 2030||39.1%|
|Insurtech Market Analysis Period||2018 - 2030|
|Insurtech Market Base Year||2021|
|Insurtech Market Forecast Data||2022 - 2030|
|Segments Covered||By Insurance Type, By Technology, By Services, By End-Use, And By Geography
|Regional Scope||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa|
|Key Companies Profiled||Damco Group, DXC Technology Company, Insurance Technology Services, InsuerTech Nova, KFin Technologies, Majesco, Oscar Insurance, Quantemplatem, Shift Technology, Trov, Inc., Wipro Limited, and ZhongAn Insurance.
||Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Regulation Analysis|
Insurtech Market Growth Factors
The enormous expansion in the banking, finance, and insurance sectors is primarily driving the insurtech market value. The market is growing as a result of increased customer data on insurance claims. The developments of the internet-based business environment, the streamlining of the transaction process, and the increasing importance of customer satisfaction all have a significant impact on the growth of the insurance technology market.
The significant adoption of technologies such as AI, ML, big data analytics, and cloud computing in the insurance industry is increasing market prospects. Integration of these technologies, as well as the large amounts of data processed by insurers via ML, can help underwrite with greater precision and apply it to future models. With technology taking over the entire claim process, businesses can now develop products tailored to individual needs, significantly reduce claim timelines, and so on; experts can devote their expertise to difficult cases. However, rising fraudulent claims and high investment costs may stifle market growth. Furthermore, incorporating big data analytics would provide the market with lucrative opportunities in the coming years.
Insurtech Market Segmentation
The global insurtech market is segmented based on insurance type, technology, services, end-use, and geography.
Insurtech Market By Insurance Type
According to our insurtech industry analysis, health insurance dominated the market with roughly one-fourth of the market share in 2021 and is expected to grow during the projected timeframe of 2022 to 2030. However, the home insurance type sub-segment is expected to grow at a rapid pace in the coming year, from 2022 to 2030. Wearables and sensors are increasingly being used by businesses to prevent workplace injuries. In addition, organizations are incorporating technologies into worker compensation.
Insurtech Market By Technology
According to technology forecasts, cloud computing will command a sizable market share in 2021. Cloud computing has transformed how businesses operate, and the insurance industry is no exception. There are numerous ways for insurers to use the cloud to improve their operations. Increased efficiency, cost savings, faster platforms, greater scalability, improved customer service, and faster time to market are just a few of them. The Blockchain sub-segment, on the other hand, is expected to grow at the fastest rate in the coming years due to its ability to integrate different insurtech platforms and allow new services to enter the market.
Insurtech Market By Services
Managed services generated the most revenue among services in 2021. Managed services give insurers the tools and expertise they need to keep their clients ahead of the competition. Furthermore, managed services assist insurers in lowering IT operating costs while allowing in-house technology teams to be more innovative and strategic. Furthermore, managed services companies provide an easy mechanism for closing the growing skills gap, while also enabling insurers to test cutting-edge technologies against products and services without affecting downstream results.
Insurtech Market By End-Use
According to our insurtech market forecast, the BFSI sector will hold a noteworthy market share between 2022 and 2030. BFSI sector is increasingly implementing Insurtech solutions to improve business proficiency. Advanced analytics and artificial intelligence are being employed for fraud detection and prevention as a result of the substantial growth in data created by banks and financial organizations. The use of mobile devices, smartphones, multimedia content, and click stream data has significantly increased the adoption of the BFSI market.
Insurtech Market Regional Outlook
The Middle East & Africa
Insurtech Market Regional Analysis
According to the insurtech regional analysis, North America commanded the utmost market share in 2021. The massive market share in the region is driven by the increasing adoption of insurance technology solutions by the insurance service sector to increase its customer base and the presence of prominent solution providers in the region. In terms of growth, Asia-Pacific will lead the market from 2022 to 2030. The high growth in APAC is ascribed to the growing population, increasing health insurance, rapidly growing automotive industry, and presence of emerging economies such as China, India, and Hong Kong. Furthermore, the growing penetration of smartphones and wearable devices is also favoring the Asia-Pacific insurtech market growth.
Insurtech Market Players
Some of the leading Insurtech companies include Damco Group, InsuerTech Nova, DXC Technology Company, Insurance Technology Services, KFin Technologies, Oscar Insurance, Majesco, Quantemplatem, Trov, Inc., Wipro Limited, Shift Technology, and ZhongAn Insurance.
The market size of Insurtech market in 2021 was accounted to be USD 8.8 Billion.
The projected CAGR of Insurtech market during the analysis period of 2022 to 2030 is 39.1%.
The prominent players of the global Insurtech market include Damco Group, DXC Technology Company, InsuerTech Nova, Insurance Technology Services, KFin Technologies, Oscar Insurance, Majesco, Quantemplatem, Trov, Inc., Shift Technology, Wipro Limited, and ZhongAn Insurance.
North America held the dominating Insurtech during the analysis period of 2022 to 2030.
Asia-Pacific region exhibited fastest growing CAGR for Insurtech during the analysis period of 2022 to 2030.
Massive growth in the BFSI sector, growing digitization of insurance service models, rapidly rising number of insurance claims, and surging trend of developing more tailored user experiences drives the growth of global Insurtech market.
Based on services, managed services segment is expected to hold the maximum share of the Insurtech market.