InsurTech Market to Grow by USD 77.41 Billion from 2024-2028, Driven by Rising Need for Business Efficiency, Report on the AI Impact on Market Trends - Technavio

NEW YORK, Feb. 4, 2025 /PRNewswire/ -- Report on how AI is redefining market landscape - The global insurtech market size is estimated to grow by USD 77.41 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 42.35%  during the forecast period. Increasing need to improve business efficiency is driving market growth, with a trend towards investors collaborating with insurtech firms. However, high cost of investment  poses a challenge. Key market players include Acko Technology and Services Pvt. Ltd., Allianz SE, Berkshire Hathaway Inc., Charles Taylor Ltd., Cuvva Ltd., Cytora Ltd., DeadHappy Ltd., Flock Ltd., Friendsurance, Kin Insurance Technology Hub LLC, KYND Ltd., Laka Ltd., Massachusetts Mutual Life Insurance Co., Milvik AB, Nimbla Ltd., Quantemplate Technologies Inc., simplesurance GmbH, Slice Insurance Technologies Inc., Uinsure Ltd., Urban Jungle Services Ltd., Wrisk Ltd., ExtraCover Ltd., and F2X Group Ltd..

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Market Driver

InsurTech, the fusion of Insurance and Technology, is creating waves in the industry. This innovation is revolutionizing Insurance Creation, Distribution, and Administration. Machine Learning and Artificial Intelligence are driving the development of new Insurance Products, including Social Insurance. Customer Data is the new currency, and InsurTech is leveraging it to make accurate Predictions and personalized Decision Making. Real-time Tracking and Monitoring Information help insureds manage their Insurance Planning. Cloud Computing, Blockchain, IoT, and Chatbots are the digital solutions transforming various Business Lines and Product Lines. Niche Customers' needs are being met with customized Risk Monitoring and Insurance Solutions. Machine Learning algorithms analyze Purchase Quantity and Consumer Needs to offer tailored Insurance Products. InsurTech is streamlining Insurance Carriers' operations with on-premise and cloud solutions. The future is bright for this dynamic sector. 

Investors are showing heightened interest in partnering with InsurTech firms, as evidenced by the recent conference with 1,500 attendees from the global insurance ecosystem. The primary focus was on technology's impact on the insurance sector. Technological advancements have revolutionized the industry, enhancing costing processes, improving consumer experience, increasing transparency, reducing fraud through data analysis, and streamlining claims for customers. InsurTech companies prioritize meeting consumers' demands for tailored insurance products and personalized services. 

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 Market Challenges

• The InsurTech market is revolutionizing the insurance industry by leveraging technology for insurance creation, distribution, and administration. Challenges include managing customer data for personalized insurance products, integrating social insurance with digital solutions, and using machine learning and artificial intelligence for predictions and decision making. Real-time tracking and monitoring information are essential for risk monitoring, especially in niche markets like life & health, auto, marine, liability, buildings, and commercial buildings insurance. Solutions providers are focusing on digital transformation, using big data, cloud computing, blockchain, IoT, and chatbots to meet consumer needs and improve purchase quantity. Insurance carriers are embracing on-premise and cloud-based systems to streamline business lines and product lines, offering customized solutions for various industries.
• Insurance firms are embracing the sale of products through the latest technology, known as InsurTech. However, this new approach necessitates specialized training for insurance staff to effectively utilize the technology and understand the insurance offerings. Consequently, insurance companies must invest in hiring trainers for their employees and brokers. Integration of various products and services with advanced technologies through banks and broking agents is becoming commonplace. Yet, many firms encounter challenges in managing these systems effectively due to a lack of technical expertise. Therefore, it is essential for insurance companies to prioritize employee training and consider partnering with technology experts to ensure successful implementation and management of InsurTech solutions.

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Segment Overview 

This insurtech market report extensively covers market segmentation by  

• Application
• Marketing And Distribution
• IT Support
• Claim Management
• Policy Administration And Management
• Others
• Deployment
• On-premises
• Cloud
• Geography
• North America
• Europe
• APAC
• Middle East And Africa
• South America
• Technology
• Blockchain
• Cloud Computing
• IoT
• Machine Learning
• Robo Advisory
• Others
• Type
• Auto
• Business
• Health
• Home
• Specialty
• Travel
• Others

1.1 Marketing and distribution-  The InsurTech market's marketing and distribution segment is poised for substantial growth during the forecast period. The widespread use of smartphones and the convenience of internet access on them have fueled digital marketing and distribution of insurance policies through advanced technologies. Regulations in various countries mandate certifications for electronic promotion systems to ensure security. The mobile point-of-sale in e-retail is gaining acceptance, providing insurance companies with opportunities to cater to a large customer base with busy lifestyles. InsurTech platforms offer insurers technologies like chatbots for live customer interaction and query resolution, enhancing the digital customer experience. Customer-centricity and high ROI are driving the segment's growth. InsurTech startups are disrupting the industry with more access, transparency, and lower costs, contrasting traditional banking institutions. Automation through pattern recognition algorithms and predictive coding can lower industry overheads and improve process efficiency. Deregulation of equity crowdfunding and private startup investments is attracting investors to the market, further fueling growth.

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Research Analysis

Insurance Technology, or InsurTech, refers to the use of technology to create, distribute, and administer insurance products. This innovative sector is revolutionizing the industry by offering ultra-customized policies tailored to individual customer needs. Social insurance, life & health, auto, marine, liability, buildings, and commercial buildings insurance are just a few areas where InsurTech is making a significant impact. Key drivers of this market include the use of customer data, machine learning, artificial intelligence, cloud computing, and deployment models like cloud and blockchain. These technologies enable insurers to analyze risk profiles, personalize policies, and streamline claims processing. IoT is another game-changer, with sensors and connected devices providing real-time data for dwelling coverage, contents coverage, and other types of insurance. Business analytics and predictive modeling further enhance risk assessment and underwriting, while AI and machine learning optimize pricing and fraud detection. Overall, InsurTech is transforming the insurance landscape, offering more personalized, efficient, and cost-effective solutions.

Market Research Overview

Insurance Technology, or InsurTech, refers to the use of technology to create, distribute, and administer insurance products. This includes social insurance, where customer data is analyzed using machine learning and artificial intelligence to make predictions and personalized recommendations based on consumer needs and purchase quantity. Real-time tracking and monitoring information are used for risk monitoring and decision making in insurance planning. Cloud computing, blockchain, IoT, and digital solutions are transforming the industry, with providers offering digital solutions for various business lines and niche customers. Life & health, auto, marine, liability, buildings, and commercial buildings insurance are all being revolutionized with these advancements. Solutions providers are leveraging big data, chatbots, and on-premise systems to offer innovative digital transformation in the insurance sector.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Marketing And Distribution
• IT Support
• Claim Management
• Policy Administration And Management
• Others
• Deployment
• On-premises
• Cloud
• Geography
• North America
• Europe
• APAC
• Middle East And Africa
• South America
• Technology
• Blockchain
• Cloud Computing
• IoT
• Machine Learning
• Robo Advisory
• Others
• Type
• Auto
• Business
• Health
• Home
• Specialty
• Travel
• Others

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio