The insurtech market size is projected to be valued at USD 20,667.5 million in 2023 and is expected to rise to USD 210,664.3 million by 2033. The sales of insurtech are projected to expand at a significant CAGR of 26.1% during the forecast period.
The demand for insurtech solutions is rising as it makes better predictions of consumer demands, increases purchasing quantities, and enhances decision-making and insurance planning through the use of machine learning, artificial intelligence, and cloud computing.
The sales of insurtech solutions are growing due to the support of various robust technologies like AI, machine learning, blockchain, and cloud computing that offer real-time surveillance and monitoring of insured activity for many businesses.
| Attributes | Details |
|---|---|
| Insurtech Market Estimated Size (2023) | USD 20,667.5 million |
| Insurtech Market CAGR (2023 to 2033) | 26.1% |
| Insurtech Market Forecasted Size (2033) | USD 210,664.3 million |
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Over the past years, the Insurtech industry has witnessed a steady rise in sales, driven by the factors such as:
Companies have been leveraging technologies such as artificial intelligence, big data analytics, machine learning, and blockchain to streamline insurance processes, enhance customer experience, and offer innovative insurance products.
As per the Insurtech industry research by Future Market Insights, historically, from 2018 to 2022, the market value of the Insurtech industry increased at around 24.0% CAGR.
Looking ahead, the future outlook for the Insurtech market remains positive. There is an increasing demand for personalized and on-demand insurance solutions that cater to the evolving needs of customers. Insurtech companies are well-positioned to deliver customized policies, automated claims processing, and real-time risk assessment, thereby offering great convenience and efficiency.
The growing adoption of digital platforms and mobile applications is reshaping the insurance landscape. Insurtech firms are capitalizing on these platforms to provide seamless user experiences, facilitate policy management, and enable easy access to insurance services.
The increasing focus on insurtech collaborations and partnerships with traditional insurance companies is expected to drive market expansion. These collaborations allow insurers to tap into the innovative technologies and capabilities of insurtech startups while providing insurtech companies with access to established distribution channels and customer bases.
The sales of insurtech solutions are growing due to shifting business models. Companies are utilizing innovative digital solutions to scale their businesses and build product lines depending on niche client demand. It is estimated to propel the demand for insurtech solutions and aid in insurtech market growth.
Different insurance sector norms and laws, as well as privacy and security concerns, are some of the factors that limit insurtech market expansion. Furthermore, the rising demand for insurtech solutions in growing nations, particularly emerging economies such as Australia, China, India, Singapore, and South Korea, provides considerable prospects for the sales of insurtech solutions to expand the overall insurtech market.
The use of technologies like cloud computing, artificial intelligence, and blockchain to help with loss prediction and prevention, risk monitoring, and claim processing is becoming a prominent factor. It is predicted to give attractive opportunities for the insurtech market to grow.
Insurance is one of the most conservative sectors, but insurtech companies are causing havoc in the insurtech market globally. According to Accenture, a consulting and professional services firm, roughly 86 percent of insurers plan to innovate and enhance existing business models. It is to meet the rising demand for insurtech solutions and maintain a competitive position by 2033.
Insurance companies all over the world are turning to innovative digital solutions to scale their operations as business models change and provide a tailored consumer experience, and boost the sales of insurtech solutions. As a result, the increasing digitalization of existing insurance business models is propelling the demand for insurtech solutions.
Various laws establish varied norms and regulations across countries, with financial centers taking a united approach to regulation. This becomes a critical issue for insurtech companies to develop insurtech solutions across several regulations such as MiFID II, GDPR, and others, which causes inter-regulation conflict. As a result, this factor stifles the insurtech market's growth.
For example:
In the United States of America, the National Association of Insurance Commissioners (NAIC) oversees and regulates the insurance business, whereas, in Europe, MiFID II requirements apply to insurance companies under its jurisdiction. This is one of the primary factors impacting the sales of insurtech solutions and insurtech market expansion.
Principal Consultant
With a CAGR of 25.8%, the Solution Segment is Anticipated to Dominate the Global Insurtech Market during the Forecast Period.
Several insurance businesses are notably adopting these insurtech solutions to create a technology-based service platform for their consumers. These technologies offer a variety of advantages, including simplified claim processing, lower policy rates, less fraud activity, and lower underwriting expenses, among others.
During the forecast period, the cloud computing category is predicted to dominate the insurtech market with a CAGR of 25.2%. With its resourcefulness, ease of deployment, and flexibility, cloud computing has revolutionized the insurance market.
The sales of insurtech solutions are projected to be fueled by widespread acceptance of Bring Your Own Device (BYOD) rules, as well as the growing amount of data that insurance companies collect. Moreover, benefits such as rapid deployment, cost-effectiveness, and scalability are driving insurance businesses to use cloud computing technologies. Over the projected period, the blockchain segment in insurtech market is expected to rise at a significant pace.
The United States insurance industry has been quick to embrace technology-driven innovations, leading to the emergence of numerous Insurtech startups and attracting substantial investments in the sector. Moreover, the United States insurance industry has witnessed an increasing emphasis on data analytics and artificial intelligence.
Insurtech firms harness these technologies to analyze vast amounts of data, assess risk profiles accurately, and offer tailored insurance solutions. Furthermore, the United States regulatory environment has been relatively supportive of innovation in the insurance sector, fostering a favorable ecosystem for Insurtech companies to thrive.
Europe is a prominent player in the global market with an influential market share of 21.2% in 2022. Insurtech companies in Europe are leveraging technologies such as artificial intelligence, data analytics, and automation to offer enhanced customer experiences, streamline operations, and develop innovative insurance products.
The European Union has also taken steps to support the growth of Insurtech. Initiatives such as the EU's Digital Single Market strategy and regulatory sandboxes facilitate experimentation and provide a conducive environment for Insurtech startups. It is to develop and deploy their innovations.
Insurtech companies in Europe are leveraging data analytics and telematics to assess risks accurately, improve underwriting processes, and offer dynamic pricing models. By harnessing advanced technologies, they can provide real-time insights, optimize claims handling, and offer value-added services to customers.
In India, Insurtech startups are leveraging technology to disrupt traditional insurance models and address the evolving needs of customers. The rise of smartphone usage and internet connectivity has enabled Insurtech companies to reach a wide customer base and offer digital insurance solutions.
The government of India has also played a proactive role in supporting the growth of Insurtech. Initiatives such as the Digital India campaign and regulatory sandboxes have created a conducive environment for startups to experiment and innovate. Furthermore, the Insurance Regulatory and Development Authority of India (IRDAI) has introduced progressive regulations to foster Insurtech innovation while ensuring consumer protection.
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By providing digital brokerage and insurance marketplaces, insurtech companies are attempting to bridge the gap between customers and insurance providers. Further, insurers have been forced to implement digital technologies that focus on the client interface due to the oversaturation of the insurance market and fierce rivalry among insurers.
Insurtech software is developed to assist insurers in developing partnerships and streamlining claim processes to increase client acquisition.
Recent Developments in the Insurtech Market
| Attributes | Details |
|---|---|
| Growth Rate | CAGR of 26.1% from 2023 to 2033 |
| Base Year of Estimation | 2023 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD billion and Volume in Units and F-CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, growth factors, Trends, and Pricing Analysis |
| Key Segments Covered | Component, Offerings, Deployment Mode, Technology, Vertical, By Region |
| Regions Covered | North America; Latin America; Europe; East Asia; South Asia; The Middle East & Africa; Oceania |
| Key Countries Profiled | The United States, Canada, Brazil, Mexico, Germany, Italy, France, The United Kingdom, Spain, Russia, China, Japan, India, GCC Countries, Australia |
| Key Companies Profiled | Damco Group; DXC Technology Company; Majesco; Oscar Insurance; OutSystems |
| Customization & Pricing | Available upon Request |
The estimated size of the market is USD 20,667.5 million in 2023.
The Insurtech market is anticipated to secure a valuation of USD 2,10,664.3 million by 2033.
The cloud computing category is predicted to lead the market by technology.
The market players attempt to bridge the gap between consumers and insurance providers by providing digital brokerage and insurance marketplaces.
The United States market held a prominent global share of 16.6% in 2022.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Offering 5.1. Solution 5.2. Service 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Deployment Model 6.1. On-premise 6.2. Cloud 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Technology 7.1. Artificial Intelligence 7.2. Cloud Computing 7.3. Blockchain 7.4. Big Data & Business Analytics 7.5. IoT 7.6. Others 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End User 8.1. Life & Health Insurance 8.2. Property and Casualty (P&C) Insurance 8.2.1. Auto Insurance 8.2.2. Commercial Buildings Insurance 8.2.3. Dwelling Coverage 8.2.4. Contents Coverage 8.3. Marine Insurance 8.4. Liability Insurance 8.5. Others 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 9.1. Product Development & Underwriting 9.2. Sales & Marketing 9.3. Policy Admin Collection & Disbursement 9.4. Claims Management 10. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 10.1. North America 10.2. Latin America 10.3. Europe 10.4. South Asia 10.5. East Asia 10.6. Oceania 10.7. MEA 11. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. South Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Oceania Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 17. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 18. Key Countries Market Analysis 19. Market Structure Analysis 20. Competition Analysis 20.1. Damco Group 20.2. DXC Technology Company 20.3. Majesco 20.4. Oscar Insurance 20.5. OutSystems 20.6. Quantemplate 20.7. Shift Technology 20.8. Trov Insurance Solutions, LLC 20.9. Wipro Limited 20.10. Zhongan Insurance 21. Assumptions & Acronyms Used 22. Research Methodology
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Insurtech Market
