PriyaPatel
TLDR:
- The global insurtech market is projected to reach US$148.3 billion by 2034, growing at a CAGR of 32.6%.
- Insurtech firms are leveraging advanced technologies like AI, IoT, blockchain, and big data analytics to streamline operations and enhance customer experience.
The insurtech market, a convergence of insurance and technology, is experiencing rapid growth and transformation driven by technological innovation and changing consumer expectations. Insurtech firms are incorporating advanced technologies like AI, IoT, blockchain, and big data analytics to enhance operational efficiency, improve underwriting accuracy, and provide personalized insurance products. The market is expected to reach US$148.3 billion by 2034, with a projected CAGR of 32.6% over the forecast period.
Blockchain technology is enhancing security and transparency in policy administration and claims settlement processes. Insurtech firms are exploring blockchain applications to streamline operations and mitigate fraud. IoT devices are enabling real-time data collection for risk assessment and personalized pricing, leading to usage-based insurance models. IAAS platforms are allowing insurers to integrate Insurtech functionalities like AI-driven chatbots and automated claims processing into their systems.
Insurtech firms are partnering with traditional insurers, tech giants, and data analytics firms to scale innovative solutions globally. They are also enabling insurers to reach underserved markets and develop personalized insurance products using advanced analytics. With the growing demand for cyber insurance coverage, Insurtech companies are offering comprehensive risk assessment tools and proactive cyber risk management solutions.
The COVID-19 pandemic underscored the importance of health insurance and wellness solutions, leading to the introduction of telehealth services and pandemic-specific coverage options by Insurtech firms. Parametric insurance gained traction for providing rapid payouts based on predefined triggers. Insurtech is playing a vital role in promoting environmental responsibility through green insurance products that incentivize eco-friendly practices.
Cloud computing, home insurance, intermediaries, and claims management & processing are key segments within the insurtech market experiencing significant growth. Europe emerged as the second-leading region in the global insurtech market in 2023 due to robust investment in technology and regulatory support. Major companies active in the insurtech market include Accenture, IBM, Lemonade, Microsoft, and SAP, among others.
