Insurance technology, or also known as Insurtech refers to the usage of technology engaging in the creation, distribution, and administration of insurance services & products. The technology refers to discovering solutions such as social insurance, offering ultra-customized policies, and using new data streams from the internet-enabled devices to vigorously price premiums. Insurtech helps in targeting the right customer with affordable quotation and also assists insurers to collect and analyze customer data. Besides, with the use of cloud computing, artificial intelligence, and machine learning, Insurtech helps in making better estimations of purchase quantity, consumer needs, and improves insurance planning and decision making.
COVID-19 Impact on Insurtech Market
The outbreak of COVID-19 across the globe has progressively impacted the global insurtech market growth. This is majorly due to the growing demand for contactless and touchless solutions across the world to prevent the spread of coronavirus infection. In addition, due to the precision and alignment of insurance technology with COVID-19’s social distancing standards, insurtech is becoming increasingly relevant. Customers and organizations are avoiding physical contact in order to restrict the virus spread. All these steps are paving the way for easy-to-use insurance technologies like blockchain, artificial intelligence, and others. All these factors have increased the demand for insurtech solutions significantly during the unprecedented times.
Insurtech Market Trends and Developments
The companies operating in the global industry are adopting several growth strategies and business tactics such as partnerships, collaboration, business expansion, and product launches to obtain a leading position in the global industry, which is predicted to drive the global insurtech market growth in the upcoming years.
For instance, in November 2020, Max Life Insurance Company, a life insurance company in India, launched the second edition of its flagship insurtech accelerator program after a successful first edition in 2019. Max Life Innovation Labs, with the launch of the second edition invites technology startups to build smart insurtech and fintech solutions for specific business challenges.
In May 2021, KFintech, the Hyderabad-headquartered registrar and transfer agency, acquired a 17% stake for an undisclosed amount in Artivatic.ai, the insurance tech startup. KFintech’s partnership with Artivatic will help the company to foray into the insurtech space as the KFintech is looking to expand beyond offering registry services to Corporates, Mutual Funds, and Pensions among other asset classes.
In October 2021, Munich Re Automation Solutions, a leading provider of insurtech solutions to the life insurance industry, announced the launch of its predictive underwriting enablement technology, namely ALLFINANZ Predictor in South Africa. Predictor is specifically designed to simplify the integration and deployment of predictive models and help firms to achieve greater automation, detailed model performance monitoring, better evidence management, and an improved user journey.
Forecast Analysis of Global Insurtech Market
The global insurtech market is projected to witness an exponential growth during the forecast period, owing to the growing need for specialty and customized insurance, speeding up the insurance companies’ adoption are projected to open up new growth opportunities for the market by 2028. Conversely, the government regulations and privacy concerns related to insurtech are expected to hamper the market growth in the projected timeframe.
The increasing digitization across the globe and continuous technological advancements are the significant factors and insurtech market trends estimated to bolster the growth of the global market in the coming future. According to a latest report published by Research Dive, the global insurtech market is expected to garner $57,934.0 million during the forecast period (2021-2028). Regionally, the Asia-Pacific region is estimated to observe the rapid growth by 2028, owing to the due to the presence of multiple financial centers and rising economies like India, Singapore, and Hong Kong in the region.
key players functioning in the Global Insurtech Market
- American Well Corporation
- Acko general insurance
- Clover Health
- Damco Group
- Oscar Insurance
- Shift Technology
- Trov Insurance Solutions, LLC
- Zhongan Insurance