Insurtech Market by Technology (AI & Machine Learning, IoT, Blockchain, and Others), Product (Life Insurance and Property & Casualty Insurance), Distribution Channel (Full Stack Insurers, Agents, and Brokers), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021–2028

IT in BFSI

BF21108506

Pages: 220

Oct 2021

Reports Overview

Global Insurtech Market Analysis

The global insurtech market size is predicted to garner a revenue of $57,934.0 million in the 2021–2028 timeframe, growing from $7,841.0 million in 2020, at a healthy CAGR of 29.1%.

Market Synopsis

The increasing digitization around the globe and the increasing technological advancements are anticipated to be major contributors of the market.

However, privacy concerns and government regulations are some of the challenges limiting the insurtech market expansion.

According to the regional analysis of the market, the Asia-Pacific insurtech market share is anticipated to grow at a CAGR of 30.2%, by generating a revenue of $13,689.8 million during the review period.

Insurtech Market Overview

Insurtech refers to the use of technology in the design, distribution, and administration of insurance products and services (Insurance Technology). Insurtech is working on ultra-customized policies, social insurance, and dynamically pricing premiums based on new streams of data from Internet-connected devices. Insurtech helps insurers collect and analyze consumer data that may be used to target the right client at a low cost.

Covid-19 Impact on Insurtech Market

In March 2020, the World Health Organization declared COVID-19 as a pandemic, which resulted in restrictions on travel and disturbances in financial markets, as well as negatively impacted supply chains and production levels. The COVID-19 pandemic has caused massive disruptions and changes in a variety of businesses, as well as a significant rise in the demand for touchless and contactless solutions. Because of their precision and alignment with COVID-19's social distancing standards, insurance technologies are becoming increasingly relevant. Organizations and customers are avoiding physical contact to restrict virus spread. These steps are paving the way for user-friendly insurance technologies like artificial intelligence, blockchain, and others. Moreover, insurtech startups and fintech insurtech companies are gradually increasing among different regions. Therefore, the demand for insurtech solutions has increased significantly during the corona virus pandemic.

Advancements in Technology are Anticipated to Drive the Insurtech Market Growth

Insurance businesses are leveraging innovative digital solutions to extend their operations and establish product lines based on niche client demand as a result of shifting business models, which contributes considerably to market growth. For loss prediction and prevention, risk monitoring, and claims processing, the integration of technologies such as cloud computing, artificial intelligence, and blockchain is becoming a prominent element that is expected to provide profitable potential for insurtech gateway in the coming years.

To know more about global insurtech industry report and trends, get in touch with our analysts here.

Security Concerns and Government Regulations Might Restrain the Market Growth

The issue of privacy is one of the most pressing challenges for digitally-based enterprises. Many people are concerned about how their personal data is collected, the extent to which it is used, and whether it is sold solely for commercial advantage. Another source of concern is anti-rebating legislation, which prohibits insurers from providing any services other than insurance. Because certain insurtech apps offer direct robo-advisors or virtual agents, which require separate licensure, this problem is crucial.

Developing Economies are Expected to Create the Opportunities of Insurtech Market

Developing economies provide significant opportunity for insurtech solution providers to grow their products as certain insurers adopt new business models. Furthermore, the need for specialty and customized insurance continues to rise, hastening insurance companies' adoption of insurtech. Insurtech market revenue is expected to rise in the coming years as a result of increased investments in digital transformation, adoption of new technologies such as artificial intelligence, analytics, big data, machine learning, and chatbots, and rapid expansion of domestic business, particularly in countries such as Singapore, Hong Kong, China, and South Korea.

To know more about global insurtech market opportunities, get in touch with our analysts here.

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