Global Insurtech Market to Witness Lucrative Growth Owing to Rising Technological Innovation and a Growing Demand for Streamlined Insurance Solutions; states TNR, The Niche Research

Global Insurtech Market to Reach the Mark of US$ 148.3 Bn by 2034; at a CAGR of 32.6% over the Forecast Period (2024 – 2034)

Wilmington, Delaware, June 14, 2024 (GLOBE NEWSWIRE) -- The insurtech market, a dynamic intersection of insurance and technology, has been experiencing rapid growth and transformation over the past decade. Defined by innovative technologies aimed at enhancing efficiency, customer experience, and product offerings within the insurance sector, Insurtech has become a significant disruptor in traditional insurance practices. The shift towards digital solutions across industries has propelled Insurtech forward. Insurers are progressively incorporating technologies such as AI, IoT, blockchain, and big data analytics to streamline operations, enhance underwriting accuracy, and improve customer engagement. Consumers now demand personalized, on-demand insurance products and seamless digital experiences. Insurtech firms are leveraging technology to deliver customized policies, quicker claims processing, and intuitive user interfaces. Insurtech solutions often reduce administrative costs through automation and data-driven decision-making. This efficiency attracts insurers looking to optimize their operations and improve profitability.

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Blockchain's decentralized ledger enhances security, transparency, and efficiency in policy administration and claims settlement processes. Insurtech firms are exploring blockchain applications to streamline operations and mitigate fraud. IoT devices, such as connected cars and smart home sensors, enable real-time data collection for risk assessment and personalized pricing. Insurtech companies leverage IoT to offer usage-based insurance models that align premiums with actual risk exposure. The emergence of IAAS platforms allows insurers to integrate Insurtech functionalities, such as AI-driven chatbots and automated claims processing, into their existing systems without substantial upfront investments. Insurtech startups are increasingly partnering with traditional insurers, tech giants, and data analytics firms to harness complementary expertise and scale innovative solutions globally.

Insurtech enables insurers to reach underserved markets, such as small and medium enterprises (SMEs) and emerging economies, through scalable digital solutions. By leveraging advanced analytics, Insurtech firms can develop personalized insurance products tailored to individual customer needs and risk profiles, thereby enhancing customer satisfaction and loyalty. With the increase in cyber threats and data breaches, the demand for cyber insurance coverage is growing. Insurtech companies are innovating in this space by offering comprehensive risk assessment tools and proactive cyber risk management solutions. As sustainability gains prominence, Insurtech plays a pivotal role in promoting environmental responsibility through green insurance products that incentivize eco-friendly practices and mitigate climate-related risks.

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COVID-19 underscored the importance of health insurance and wellness solutions. Insurtech firms responded by introducing telehealth services, wellness apps, and pandemic-specific coverage options. Parametric insurance gained traction due to its ability to provide rapid, transparent payouts based on predefined triggers such as pandemic-related economic losses or travel disruptions. Traditional insurers expedited digital transformation initiatives, fostering partnerships with Insurtech startups to enhance agility and resilience in a rapidly changing landscape. In conclusion, the Insurtech market continues to evolve, driven by technological advancements, shifting consumer expectations, and regulatory support. While COVID-19 posed challenges, it also catalyzed innovation and accelerated digital transformation within the insurance industry, paving the way for a more resilient and customer-centric future. As Insurtech firms navigate these opportunities and challenges, collaboration, innovation, and adaptability remain crucial for sustained growth and market leadership.

Global Insurtech Market: Key Takeaways of the Report: 

  • The services segment in the insurtech market is poised for significant growth with a projected CAGR of 7.2% due to escalating adoption of digital solutions. Insurers increasingly rely on these services for streamlined operations, such as AI-driven customer support and data analytics. This trend underscores a strategic shift towards enhancing efficiency and customer satisfaction in insurance processes.
  • Cloud computing has dominated the insurtech market with a significant revenue share of 26.5% due to its pivotal role in enhancing scalability, agility, and cost-efficiency for insurers. It enables seamless integration of digital technologies like AI and IoT, facilitating real-time data processing and improving operational flexibility, thereby driving its widespread adoption across the industry.
  • Home insurance segment has become a prominent segment in the insurtech market, capturing 8.9% market share due to increasing digitalization and consumer demand for personalized policies. Insurtech innovations have streamlined policy management, claims processing, and risk assessment in the home insurance sector, attracting both insurers and policyholders seeking efficient, tech-driven solutions.
  • The intermediaries segment in the insurtech market is expected to grow rapidly over the forecast period due to rising adoption of digital platforms by insurance brokers and agents. These intermediaries leverage insurtech solutions to enhance client engagement, streamline operations, and offer personalized insurance products, thereby driving the segment's growth as they adapt to evolving consumer expectations and market dynamics.
  • Claims management & processing has dominated the insurtech market with an 18.9% revenue share due to its critical role in enhancing efficiency and reducing costs for insurers. Insurtech solutions streamline claims handling through automation, AI, and data analytics, improving accuracy and speed of processing. This capability is increasingly valued by insurers seeking to optimize operational workflows and customer satisfaction.
  • In 2023, Europe strengthened its position as the second-leading region in the global insurtech market due to robust investment in technology and regulatory support fostering innovation. Insurtechs in Europe are advancing digital transformation in insurance, driving growth through initiatives that enhance customer experience, operational efficiency, and product innovation, thus solidifying the region's prominence in the market.

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Following are the major companies active within the insurtech market:

  • Accenture
  • Capgemini
  • Clearcover
  • Cognizant
  • Damco Group.
  • DXC Technology Company
  • IBM
  • Infosys Limited
  • Lemonade
  • LTIMindtree Limited
  • Metromile
  • Microsoft
  • Oracle
  • Oscar Health
  • Pacific Prime Insurance Brokers Limited (PPIB)
  • Root Insurance
  • SAP SE
  • Shift Technology
  • Tata Consultancy Services Limited
  • Wipro Limited
  • YF Life Insurance International Ltd.
  • Zensar Technologies Ltd
  • Other Industry Participants

Browse Related Category Reports

Global Insurtech Market

By Component

  • Software
    • Cloud Based
    • On Premise
  • Services
    • Consulting
    • Support & Maintenance
    • Managed Services
    • Others

By Technology

  • Artificial Intelligence
  • Cloud Computing
  • Blockchain
  • Big Data & Business Analytics
  • IoT
  • Others

By Insurance Type

  • Auto Insurance
  • Home Insurance
  • Health Insurance
  • Life Insurance
  • Workers’ Compensation Insurance
  • Peer-to-Peer Insurance
  • On-Demand Insurance
  • Cyber Insurance
  • Ridesharing Coverage
  • Host Liability Coverage
  • Others

By End User

  • Insurance Carriers
  • Intermediaries

By Application

  • Marketing and Customer Retention
  • Contract Execution
  • Payment processing
  • Underwriting
  • Risk minimization
  • Fraud Detection
  • Customer identity verification
  • Claims Management & Processing
  • Others

By Region

  • North America (U.S., Canada, Mexico, Rest of North America)
  • Europe (France, The UK, Spain, Germany, Italy, Nordic Countries (Denmark, Finland, Iceland, Sweden, Norway), Benelux Union (Belgium, The Netherlands, Luxembourg), Rest of Europe)
  • Asia Pacific (China, Japan, India, New Zealand, Australia, South Korea, Southeast Asia (Indonesia, Thailand, Malaysia, Singapore, Rest of Southeast Asia), Rest of Asia Pacific)
  • Middle East & Africa (Saudi Arabia, UAE, Egypt, Kuwait, South Africa, Rest of Middle East & Africa)
  • Latin America (Brazil, Argentina, Rest of Latin America)  

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