Insurtech Market Size, Share & Trends Report

Insurtech Market Size, Share & Trends Analysis Report By Type (Auto, Business, Health, Home, Speciality, Travel), By Service (Consulting, Support & Maintenance), By Technology, By End Use, And Segment Forecasts, 2019 - 2025

  • Published Date: Dec, 2019
  • Base Year for Estimate: 2018
  • Report ID: GVR-4-68038-093-4
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2017
  • Number of Pages: 161

Industry Insights

The global insurtech market size was valued at USD 1.5 billion in 2018 and is expected to witness a CAGR of 43.0% from 2019 to 2025. Insurance companies across the globe are highly investing in digitization to simplify the transaction process and improve the functionality of insurance payment system. The adoption of insurance technology has allowed businesses to asses risks related to the market, counterparty credit, operation, and liquidity. Insurtech also allows insurance companies to improve customer engagement and provide faster services.

Increasing customer data and the need to monitor, manage, and maintain it has become has become challenging in an organization. Thus, the demand for digitization in business processes will rise as it helps insurance companies in simplifying the management, maintenance, and monitoring of their customers’ data. The development of numerous payment processing technologies has made the transaction process easier for the insurance companies. The adoption of insurtech in the insurance industry introduced ultra-customized policies by using new streams of data from internet connected devices. This, in turn, help insurance companies to dynamically price premiums based on observed behavior of customers.

U.S. insurtech Market

Insurtech is significantly used in end-use industries such as BFSI, automotive, government, manufacturing, healthcare, transportation, and retail, since it enables the streamlining of transaction processes. It allows businesses to easily and quickly access the unstructured data gathered through data analytics to achieve security goals. Additionally, the adoption of insurtech solutions may result in a saving time, significant reduction in costs, and fraud mitigation in areas such as anti-money laundering and customer identity verification, which helps businesses to achieve increased profitability. These factors are expected to drive the market for insurtech over the forecast period.

Increasing number of internet-connected devices across the globe allow insurance companies to get real-time information of the customers to offer their products and services at better pricing or underwriting to their customers. Emergence of cloud computing and Internet of Things (IoT) exhibits lucrative opportunities for robust development of the market for insurtech. Cloud based insurance offerings can help insurance companies to achieve IT agility and minimize project implementation time. This agility and speed allows insurance companies to offer their products and services much faster than before.

However, challenges such as concerns related to data security and privacy is expected to hinder the growth of the market for insurtech. Insurance companies offer discounts on standard premiums based on real-time monitoring of customer behavior. However, poor internet connectivity can affect the outcome of the real-time monitoring systems and minimize the customer’s chances of getting offers and discounts on premiums offered by insurance companies. Other challenges, such as dependency on traditional transaction processes and lack of digital literacy in underdeveloped countries, are anticipated to hamper the growth of the market for insurtech, to a certain extent.

Type Insights

On the basis of type, the market for insurtech is segmented into auto, business, health, home, speciality, travel, and others. Insurance companies within the health domain are focusing on leveraging artificial intelligence, machine learning, and internet of things (IoT) to deliver advanced applications, which improve customer experience and automate internal business processes. Growing demand for digital platforms, which connects carriers, exchanges, brokers, and providers in health insurance is expected to propel demand for the health segment. Furthermore, health insurance companies are focusing on streamlining their processes by adopting digital processes such as automated underwriting, digital payments, collaborative and connected care delivery, and digital enrollment into their existing operations, which help in improving their healthcare ecosystem.

Technology providers are developing and providing digital platforms for insured people to take benefits of various health insurances offered by insurance companies. For instance, in June 2019, League Inc., a digital platform developer in U.S., launched a digital health platform. The platform is designed to provide a single access hub for insured people to select health policy according to their preference and enhanced customer experience. The company also offers mobile app which allows users to access information about healthcare providers, payment processing, offers, and discounts offered by insurance companies.

Service Insights

On the basis of service, the insurtech market is segmented into consulting, support and maintenance, and managed services. The managed services segment dominated the market for insurtech in 2018. Managed services provide Differentiation, Agility, Transformation and Automation (DATA) model for insurance companies, which allow insurance companies to adopt emerging technologies for better access of their products and information, increasing personalization, and improving service opportunities. Managed services further help in providing industry-focused expertise, which helps businesses to address challenges and opportunities in business operations and IT.

Managed services provide a discrete environment for insurance companies where companies can test emerging technologies on their products and services without impacting their downstream results. Managed services also allow insurance companies to bring their expertise along with emerging technologies to offer new products and services in the market for insurtech. These factors are expected to drive demand for the managed services segment over the forecast period. Furthermore, rising demand for various managed services in end-use industries for identifying growth opportunities and managing risks for future development is also propelling segment growth.

Technology Insights

On the basis of technology, the market for insurtech is segmented into blockchain, cloud computing, IoT, machine learning, robo advisory, and others. Growing consumer demand for customized and hybrid products, and rising demand for consolidating technology and core systems claims, underwriting, and policy administration to lower the operational costs are expected to drive demand for the cloud computing segment. Cloud computing also allows the insurance industry to manage risks and frauds. Cloud technology can integrate all risk data such as loss events, risk and control assessments, and key risk indicators within a single environment, which help insurance companies to make better decisions about regulatory perspective and business risks.

Cloud technology also helps organizations to identify fraud and undesirable behavior in the transaction processes. The technology also help organizations to isolate recovery opportunities throughout the claims process. Organizations can identify and mitigate claims which have a higher possibility of being fraudulent and help in minimizing fraud schemes. Cloud computing offers greater flexibility in IT function, minimize the cost, and takes shorter time in transaction processes than traditional IT systems.

End-use Insights

On the basis of end use, the market for insurtech is segmented into automotive, BFSI, government, healthcare, manufacturing, retail, transportation, and others. The BFSI segment dominated the market for insurtech in 2018 and is expected to maintain its dominance over the forecast period. Increased deployment of digital platform to enable enhanced client experience and to offer advantages such as constant access to client database and secure transactions are expected to drive the BFSI segment. The rising number of government initiatives and financial regulations across the globe have encouraged BFSI to opt for insurtech-based solutions in order to offer enhanced customer experience.

Europe insurtech Market

Surge in customer acquisition over social media channels and growing digitization to improve front-end customer experience are further expected to drive demand for insurtech in BFSI. Insurance companies are focusing on strategic initiatives, such as mergers and acquisitions, and partnerships to provide digital platform for transaction processes. For instance, in October 2019, Prudential Financial, Inc. completed the acquisition of Assurance IQ, a direct-to-consumer solutions platform provider. The acquisition allowed the former company to offer their medicare, health, and auto insurance online.

Regional Insights

The North American region dominated the market for insurtech in 2018. This dominance can be attributed to rising demand for end-to-end digital financial solutions and significant presence of technology providers. Furthermore, the flexibility and customization offered by various insurtech products such as health, life insurance, and property allow people to choose among the best plans. Financial institutions in the region are significantly focusing on incorporating digital capabilities into their offerings in order to maintain a substantial competitive advantage.

The Asia Pacific market for insurtech is expected to register significant growth over the forecast period. This growth can be attributed to increasing number of insurance companies that are focusing on providing affordable insurance plans in the region. High penetration of internet users and rising adoption of cloud technologies in the region is further encouraging insurance companies to opt for digital insurance platforms. Furthermore, favorable government initiatives to promote the use of advanced banking tools and platforms are expected to propel market growth in the Asia Pacific region.

Insurtech Market Share Insights

Key players in the market include Damco Group; DXC Technology Company; Majesco; Oscar Insurance; Quantemplate; Shift Technology; Trōv, Inc.; Wipro Limited; and Zhongan Insurance. Mutual agreements, product launches, and product upgrades are some of the key strategies adopted by the players to strengthen their market position. For instance, in August 2018, Zhongan Technology, a subsidiary of Zhongan Insurance launched Software-as-a-Service (SaaS) platform for insurers. The platform provides services of online regional inspection, rapid access to medical claims data, and accurate and efficient insurance data, which allows insurance companies to improve their operational efficiency.

Key players in the market for insurtech are also investing in research and development activities to improve and strengthen their capabilities across new and emerging technology areas and potential business use cases applying these technologies. For instance, in 2018, Majesco invested in research and development activities to strengthen its capabilities in emerging technologies. The company’s research and development team is focusing on developing digital solutions for insurance companies, which are expected to help them to automate their processes and improve decision making capabilities.

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2014 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Billion and CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America, and MEA

Country scope

U.S., Canada, Germany, U.K., India, Japan, China, and Brazil

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization


Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global insurtech market report based on type, service, technology, end use, and region:

  • Type Outlook (Revenue, USD Million, 2014 - 2025)

    • Auto

    • Business

    • Health

    • Home

    • Speciality

    • Travel

    • Others

  • Service Outlook (Revenue, USD Million, 2014 - 2025)

    • Consulting

    • Support & Maintenance

    • Managed Services

  • Technology Outlook (Revenue, USD Million, 2014 - 2025)

    • Blockchain

    • Cloud Computing

    • IoT

    • Machine Learning

    • Robo Advisory

    • Others

  • End-use Outlook (Revenue, USD Million, 2014 - 2025)

    • Automotive

    • BFSI

    • Government

    • Healthcare

    • Manufacturing

    • Retail

    • Transportation

    • Others

  • Regional Outlook (Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

    • MEA

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