Insurtech Market Overview

Insurtech refers to insurance technology aimed at increasing efficiency and lowering costs for insurance companies. The US insurtech market has witnessed rapid growth in recent years, driven by innovation in financial technology and need for digital transformation.

According to Market Research Future (MRFR), the global insurtech market size is projected to grow from USD 8.6 billion in 2023 to USD 264.9 billion by 2032, at a Compound Annual Growth Rate (CAGR) of 53.50% during the 2023–2032 period. Key factors powering growth include favorable regulatory initiatives, availability of large amounts of capital for investment and rising adoption of IoT devices.

Key Segments

Based on service, the insurtech industry is segmented into consulting, support & maintenance, and managed services. The consulting segment accounted for the largest market share in 2023. Consulting services help insurers strategize digital ops and stay updated on technology innovations relevant to the insurance sector.

In terms of end-users, insurtech solutions find applications across life & health insurance companies, property and casualty insurance companies, re-insurance companies, and brokers. The life & health insurance segment captured the maximum share during 2023–2032.

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Regional Insights

During 2020, the European insurtech market dominated with the largest share driven by countries like the UK, Germany, France, and Italy where insurers rapidly adopt newer technologies to offer personalized products to tech-savvy customers.

Asia Pacific is expected to register the highest CAGR in coming years owing to the rise in digital channels, smartphone penetration, and insurers leveraging technologies like automation, AI/ML and data analytics to make decisions based on robust datasets.

Key Companies

Prominent players operating in the insurtech market include Damco Group, DXC Technology Company, Majesco, Oscar Insurance, OutSystems, Quantemplate, Shift Technology and Trov. Mergers & acquisitions, partnerships with insurance companies, and funding allow these players to expand their digital solutions.

Benefits of InsurTech

• Personalized Premiums & Recommendations: Usage-based insurance offerings powered by IoT devices and sophisticated risk models allow dynamic pricing.
• Convenient Claims Processing: Automated claims supported by AI and ML settle routine claims rapidly, lowering overheads.
• Fraud Reduction: Pattern recognition abilities of advanced analytics significantly minimize fraudulent claims.
• Hyper-Customization: Aggregation of data from multiple sources facilitates tailoring of policies, communication channels etc. to each client.
• New Revenue Models: Digital platforms tap growth opportunities around parametric insurance, on-demand coverage, microinsurance, and reinsurance.