Insurtech Market Analysis Report By Type, By Service, By Technology, By End Use And Segment Forecasts From 2019 To 2025

Industry Insights

The insurtech market size across the globe was valued at USD 1.5 billion in the year 2018. It is projected to witness a CAGR of 43.0% over the forecasted years, 2019 to 2025. The need for digitalization for enhancing transactions and functionality of insurance claims is projected to drive market growth. Also, the need for assessing risks about operations, counterparty credit, liquidity, and market are propelling its demand.

Rising customer data coupled with the need for monitoring, maintaining, and managing it is becoming a crucial part of several organizations. Therefore, the need for digitizing business processes is being foreseen across various business verticals. Thus, the insurance industry is engaged in introducing customized policies with the usage of streamlined data derived from several internet-connected devices.

It facilitates quick and easy access to the random unstructured data which can be gathered from data analytics for achieving security goals. Also, the surging adoption of such solutions results in time-saving, fraud mitigation, and cost reduction for preventing money laundering.

The rising number of many interconnected devices permits insurance companies in getting real-time information about their customers. Also, the emergence of technologies like IoT (Internet of Things) and cloud computing are expected to propel the demand for the market in the upcoming years.

Type Insights

The insurtech market can be segmented into business, auto, home, health, business, travel, specialty, and others. Several insurance companies operating across the health sector are adopting technologies like AI (artificial intelligence), ML (machine learning), and IoT (Internet of Things) for the enhancement of customer experience and automating business processes.

Many service providers are engaged in developing digital platforms for smoothening the process of claiming health insurance. For example, a digital platform service provider named League Inc. developed a digital platform in 2019 for claiming health insurance. They have also developed a mobile application for providing information access related to offers, payment processing, discounts, and health checkups. These factors are expected to propel market growth in the upcoming years.

Service Insights

In 2018, the managed services segment held the largest share across the global market. This can be attributed to their features like providing agility, differentiation automation, and transformation to several insurance companies. They also help in providing industry expertise that can address business challenges and opportunities.

They also provide a discrete environment to various insurance companies for testing new technologies along with their services and products. Such factors are anticipated to boost the growth of managed services in the upcoming years. Moreover, the adoption of managed services across many end-use industrial sectors to identify growth opportunities coupled with the need for managing risks is expected to drive the market growth.

Technology Insights

The global insurtech market can be segmented into cloud computing, blockchain, machine learning, Robo advisory, IoT, and others. The segment of cloud computing is anticipated to register significant growth on account of rising consumer demand for hybrid and customized products. Also, it facilitates in reduction of frauds and risks by integrating risk data like risk & control assessments, key risk indicators, and loss events in an individual environment.

Cloud technology facilitates many organizations in identifying undesirable behavior and frauds across transaction processes. It also facilitates organizations in isolating recovery opportunities in the process of claims. Moreover, their features of offering flexibility in minimizing costs, IT functioning and less time for transactions are projected to drive the market growth over the forecasted years.

End-use Insights

The end-user segment of BFSI held the largest share across the global market in 2018. It is also anticipated to continue its dominance over the forecasted period. The growing deployment of several digital platforms for enhancing the client’s experience is projected to drive market growth. Also, benefits like access to the client’s database coupled with the safety provided while carrying out transactions are projected to drive the market growth across this segment.

Other factors contributing to the growth of this segment are customer engagement through social media platforms coupled with rapid digitization. Several players operating in the BFSI industry are implementing strategies like partnerships, acquisitions, and mergers for providing digital platforms in the transaction process. For example, Prudential Financial Inc. gained acquisition over Assurance IQ in 2019 for facilitating their online offerings in fields like health, auto insurance, and medicare.

Regional Insights

In 2018, North America held the largest share across the global market. This can be associated with the surging adoption of financial solutions coupled with the rising number of service providers across this region. Also, the advanced level of customization and flexibility provided by these products like an insurance for property, life, and health facilitate their selection as per the desired need of individuals. Moreover, several financial institutions residing across this region are engaged in adopting digital solutions.

The Asia Pacific is projected to witness significant growth in the upcoming years. This can be associated with the surging number of insurance companies coupled with the wide variety of plans offered by them to their customers across countries like China and India. Also, the rising adoption of cloud-based technologies coupled with the penetration of the internet among the lives of the millennial population is driving the key players across this region to opt for digital solutions.

COVID-19 Impact Insights

The market has been affected positively due to the ongoing COVID-19 pandemic. This can be associated with the increasing demand for insurance claims on account of health concerns arising among senior citizens. Moreover, the need for catering hospitalization expenses due to the pandemic is driving the demand for medical and health insurance. Further, rapid technological advances in fields like AI, ML, and IoT are anticipated to propel market growth over the post-pandemic period.

Insurtech Market Share Insights

The key players in the market are Majesco, Damco Group, Oscar Insurance, DXC Technology Company, Shift Technology, Quantemplate, Zhongan Insurance, and Wipro Limited. These players are constantly engaged in product development and innovation to gain a competitive advantage over other players. For example, a Zhongan Insurance subsidiary named Zhongan Technology launched a SaaS (Software-as-a-service) platform for its insurers.

These players have also started investing hugely in R & D activities to widen their geographical reach and product portfolio. For example, the R&D team of Majesco was formed in 2018 and it is engaged in the development of digital solutions to cater to various insurance companies.

Report Scope

Segments Covered in the Report

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

• Type Outlook (Revenue, USD Million, 2014 - 2025)
    • Auto
    • Business
    • Health
    • Home
    • Specialty
    • 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
        • The U.S.
        • Canada
    • Europe
        • Germany
        • The U.K.
    • The Asia Pacific
        • China
        • India
        • Japan
    • Latin America
        • Brazil
    • Middle East & Africa