The global insurtech market size was valued at USD 2.72 billion in 2020. It is expected to expand at a compound annual growth rate (CAGR) of 48.8% from 2021 to 2028. The increasing need for digitization of insurance services is expected to propel the market growth. Simplification of the claims processes is anticipated to drive the growth. Insurance companies are focusing on improving communication with their clients and capabilities to implement automation processes. They are also focusing on using these solutions as they use technology innovations particularly designed to improve the efficiency of the existing insurance industry model. These solutions are helping businesses discover avenues that large insurance companies have less incentive to achieve, such as offering social insurance and ultra-customized policies. These solutions use new streams of information from the internet-enabled devices to price premiums according to observed behavior.
Numerous insurtech companies are focusing on using deep learning competent artificial intelligence (AI) to efficiently handle the tasks of agents and find the accurate mix of policies to complete an individual’s coverage. The increasing use of applications to pull dissimilar policies into one platform for monitoring and management is expected to fuel the market growth over the forecast period. These applications can be widely used for creating on-demand insurance for micro-events, such as borrowing an associate's car. Moreover, these applications can create tailored group coverage and incentivize optimistic choices through group rebates.
Insurtech is the usage of technology innovations particularly designed to make the existing insurance model more efficient. By using technologies such as AI and data analytics, insurtech solutions allow products to be priced more competitively. Insurance companies are widely adopting these solutions to drive cheaper, better, and faster operational results. Hence, the insurance industry is witnessing increased investment in technology.
The outbreak of COVID-19 is anticipated to have a positive impact on the market. Numerous insurance companies are reconsidering their long-term strategies and short-term needs. The COVID-19 and its impacts are accelerating the implementation of online platforms and new mobile applications to meet consumer needs. However, privacy concerns and data security are expected to hamper the market growth over the forecast period.
The health segment led the market and accounted for more than 24.0% share of the global revenue in 2020. The increasing demand for digital platforms, which connect exchanges, brokers, providers, and carriers in health insurance, is anticipated to fuel the demand for the health segment. Life and health insurers are focusing on using advanced analytics to better serve and understand their customers. Numerous health insurance companies are adopting insurtech solutions to streamline claims processing procedures.
The home segment is anticipated to register the highest CAGR over the forecast period. Numerous home insurance companies are seeking to create innovative products for commercial and residential real estate professionals and their respective tenants and residents. These companies are adopting insurtech solutions as it offers faster list-to-lease time. These solutions use AI technology to create and deliver personalized insurance policies and efficiently handle claims for customers without needing insurance brokers.
The managed services segment dominated the insurtech market and accounted for more than a 42.0% share of the global revenue in 2020. Managed services providers can provide insurers a measured gateway to transformation by incorporating expertise and talent with new technologies. Managed services providers also offer best processes, practices, and regulatory considerations to insurers. Insurers have started acknowledging and embracing the value of improved business models, thereby creating growth opportunities for the managed services segment.
The support & maintenance segment is anticipated to register the highest CAGR over the forecast period. The segment growth can be attributed to the increasing adoption of advanced technologies and distribution channels by insurance companies. Numerous insurance companies across the globe are focusing on deploying advanced technology and customizing legacy software products to specific needs. This, as a result, is expected to drive the demand for support & maintenance services across the globe.
The cloud computing segment led the market and accounted for more than 24.0% share of the global revenue in 2020. Cloud computing has transformed the insurance industry with its resourcefulness, ease of deployment, and flexibility capabilities. The widespread acceptance of bring your own device (BYOD) policies coupled with the growing amount of data insurance companies collect are expected to drive the cloud computing segment growth. Insurance companies are adopting cloud computing solutions owing to various benefits it offers, such as rapid deployment, cost-effective, and highly scalable, among others.
The blockchain segment is anticipated to register the highest CAGR over the forecast period. Blockchain technology is enabling insurance companies to cut down operational costs and drive operational efficiencies. This technology can be used to drive growth and integrate varied insurtech platforms. The technology delivers efficiencies, which in turn enable new services to come to market, particularly for those who could not access insurance previously.
The BFSI segment led the market and accounted for more than 20.0% share of the global revenue in 2020. BFSI businesses are widely adopting insurtech solutions for improving business efficiency. The increase in the number of connected devices in the BFSI sector has led to the generation of a huge amount of data. Moreover, insurance companies have realized that they can use such data to deliver better services, optimize costs, gain insights, and boost revenues.
The healthcare segment is expected to register the fastest over the forecast period. The influence of digitization is an important trend, which will further drive the adoption of insurtech solutions in the healthcare industry. The growing number of devices has created a need for effective monitoring, management, and maintenance of data across healthcare organizations. The growing digitization among customers has amplified the demand for easier and better access to insurance technology services.
North America dominated the market for insurtech and accounted for more than a 37.0% share of the global revenue in 2020. The North American region is witnessing an increased adoption of insurtech solutions owing to increased spending of customers in the area of insurance-related products. Moreover, these solutions offer customizable and flexible insurance plans for property and health. Furthermore, the significant presence of technology providers in the North American region and the increasing demand for end-to-end digital financial solutions is expected to propel the regional market growth.
The Asia Pacific is anticipated to emerge as the fastest-growing regional market over the forecast period. The Asia Pacific regional market is expected to witness significant growth over the forecast period due to the presence of numerous emerging economies and financial hubs in Singapore, India, and Hong Kong. The insurance service providers in the region are aiming to offer affordable insurance premium plans. The growing adoption of cloud technologies and high penetration of internet users is encouraging insurance companies in the region to opt for digital insurance platforms.
The market is highly fragmented in nature. The market is characterized by the presence of a large number of small players, which cater to the requirements of life- and non-life insurance sectors. The market players are focusing on innovations and offering unique solutions to improve the insurance value chain. This improved value chain is further attracting funds from investors and legacy players worldwide.
Regulation has curbed vendors’ ability to experiment. However, limited competition has given them no particular reason to do so. Ubiquitous data communications and digitization have enabled market players to build global supply chains. The capability of the insurtech businesses to drive innovation in the insurance industry by developing new products and solutions will help insurance firms meet the dynamic customer requirements. Some prominent players operating in the insurtech market include:
Damco Group
DXC Technology Company
Insurance Technology Services
Majesco
Oscar Insurance
Quantemplate
Shift Technology
Trōv, Inc.
Wipro Limited
Zhongan Insurance
Report Attribute |
Details |
Market size value in 2021 |
USD 3.78 billion |
Revenue forecast in 2028 |
USD 60.98 billion |
Growth Rate |
CAGR of 48.8% from 2021 to 2028 |
Base year of estimation |
2020 |
Historical data |
2016 - 2019 |
Forecast period |
2021 - 2028 |
Quantitative units |
Revenue in USD million and CAGR from 2021 to 2028 |
Report coverage |
Revenue forecast, company market share, competitive landscape, growth factors, and trends |
Segments covered |
Type, service, technology, end-use, region |
Regional scope |
North America; Europe; Asia Pacific; Latin America; MEA |
Country scope |
U.S.; Canada; Germany; U.K.; China; India; Japan; Brazil |
Key companies profiled |
Damco Group; DXC Technology Company; Insurance Technology Services; Majesco; Oscar Insurance; Quantemplate; Shift Technology; Trōv, Inc.; Wipro Limited; Zhongan Insurance |
Customization scope |
Free report customization (equivalent to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
The 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 2016 to 2028. For 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, 2016 - 2028)
Auto
Business
Health
Home
Specialty
Travel
Others
Service Outlook (Revenue, USD Million, 2016 - 2028)
Consulting
Support & Maintenance
Managed Services
Technology Outlook (Revenue, USD Million, 2016 - 2028)
Blockchain
Cloud Computing
IoT
Machine Learning
Robo Advisory
Others
End-use Outlook (Revenue, USD Million, 2016 - 2028)
Automotive
BFSI
Government
Healthcare
Manufacturing
Retail
Transportation
Others
Regional Outlook (Revenue, USD Million, 2016 - 2028)
North America
U.S.
Canada
Europe
Germany
U.K.
Asia Pacific
China
India
Japan
Latin America
Brazil
Middle East & Africa
b. The global insurtech market size was estimated at USD 2.72 billion in 2020 and is expected to reach USD 3.77 billion in 2021.
b. The global insurtech market is expected to grow at a compound annual growth rate of 48.8% from 2021 to 2028 to reach USD 60.98 billion by 2028.
b. North America dominated the insurtech market with a share of 37.0% in 2020. This is attributable to the rising demand for end-to-end digital financial solutions and the significant presence of technology providers.
b. Some key players operating in the insurtech market include Damco Group; DXC Technology Company; Majesco; Oscar Insurance; Quantemplate; Shift Technology; Trōv, Inc.; Wipro Limited; and Zhongan Insurance.
b. Key factors that are driving the market growth include the development of numerous payment processing technologies has made the transaction process easier for the insurance companies.
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Artificial Intelligence (AI), Virtual Reality (VR), and Augmented Reality (AR) solutions are anticipated to substantially contribute while responding to the COVID-19 pandemic and address continuously evolving challenges. The existing situation owing to the outbreak of the epidemic will inspire pharmaceutical vendors and healthcare establishments to improve their R&D investments in AI, acting as a core technology for enabling various initiatives. The insurance industry is expected to confront the pressure associated with cost-efficiency. Usage of AI can help in reducing operating costs, and at the same time, can increase customer satisfaction during the renewal process, claims, and other services. VR/AR can assist in e-learning, for which the demand will surge owing to the closure of many schools and universities. Further, VR/AR can also prove to be a valuable solution in providing remote assistance as it can support in avoiding unnecessary travel. The report will account for Covid19 as a key market contributor.