“IoT insurance market to grow at a CAGR of 65.89% between 2016 and 2022”
A key driving factor for the growth of the market is the growing adoption of Internet of Things (IoT) for various insurance applications such as health, life, automobiles, travel, and agriculture sectors, among others. The IoT-enabled devices provide intelligent data for insurers to monitor and track the status and monitor data that helps insurers to manage claims and reduce risks.
“Automotive and transportation insurance application to exhibit impressive growth in the IoT insurance market during the forecast period”
Most of the automotive insurance industries offer usage-based insurance for drivers and car owners. The IoT-based devices such as in-vehicle sensors, global positioning systems, and other on-board devices generate informative data for insurance industry. Data such as speed, acceleration, and distance driven is collected by insurers and is used to accurately access premium policies and reduce frauds. Additionally, the policyholders are able to get rewards for good driving behavior and improve the driving habits. Hence, IoT would be able to reduce the cost of premiums and strengthen customer relationships. The adoption of telematics in UBI enhances the underwriting process and speed up the insurance claim process.
“APAC region to be the fastest-growing market for IoT insurance”
The IoT insurance market is expected to grow at the highest CAGR between 2016 and 2022 owing to the increasing industrialization and urbanization in this region. The growing adoption of IoT devices such as smartphones, drones, and Wi-Fi dongles, among others in the Asia-Pacific region has increased the demand for IoT insurance in the region. The major investments in new innovations and IoT technologies in developing economies of APAC region drive the IoT insurance market.
Breakdown of profile of primary participants:
- By Company Type: Tier 1 - 40%, Tier 2 - 35%, and Tier 3 - 25%
- By Designation: C-Level Executives - 35%, Directors - 25%, and Others - 40%
- By Region: North America - 45%, APAC - 30%, Europe - 20%, and RoW - 5%
The key players offering various products and services in the IoT insurance market include International Business Machines Corporation (U.S.), SAP SE (Germany), Oracle Corporation (U.S.), Microsoft Corporation (U.S.), Google Inc. (U.S.), LexisNexis Risk Solutions (U.S.), Zonoff, Inc. (U.S.), Cisco Systems, Inc. (U.S.), Accenture PLC (Ireland), Concirus (U.K.) and Verisk Analytics, Inc. (U.S.). Also, the insurance companies that have implemented IoT for various applications include AXA Insurance (France), American Family Insurance (U.S.), American International Group, Inc. (U.S.), Allianz SE (Germany), Berkshire Hathaway Inc. (U.S.), and Zurich Insurance Group Ltd. (Switzerland).
In this report, various segments such as insurance type, insurance applications, and geography have been covered. It also discusses the drivers, restraints, opportunities, and challenges pertaining to the market. The report gives a detailed view of the market across five main regions: North America, Europe, APAC, Middle East and Africa, and Latin America. The political, economic, social, and technological (PEST) factors analysis has been included in the report along with the description of each of its factors and their impact on the said market.
Reasons to Buy the Report:
- This report includes statistics pertaining to the IoT insurance market on the basis of insurance type, insurance application, and region.
- The PEST analysis, value chain analysis, and key strategies adopted by the market players have been provided for the IoT insurance market.
- Major drivers, restraints, opportunities and, challenges for the IoT insurance market have been provided in detail in this report.
- The report includes illustrative segmentation, analysis, and forecast for the IoT insurance market based on its segments and subsegments.
1.1 Objectives of the Study
1.2 Market Definition
1.3 Study Scope
1.3.1 Markets Covered
1.3.2 Geographical Scope
1.3.3 Years Considered for the Study
1.4 Currency And Pricing
2 Research Methodology
2.1 Research Data
2.1.1 Secondary Data
188.8.131.52 Key Data from Secondary Sources
2.1.2 Primary Data
184.108.40.206 Key Data from Primary Sources
220.127.116.11 Key Industry Insights
18.104.22.168 Breakdown of Primaries
2.2 Market Size Estimation
2.2.1 Bottom-Up Approach
2.2.2 Top-Down Approach
2.3 Market Breakdown & Data Triangulation
2.4 Research Assumptions
3 Executive Summary
4 Market Overview
4.2 Market Segmentation
4.2.1 Iot Insurance Market, By Insurance Type
4.2.2 Iot Insurance Market, By Insurance Application
4.2.3 Iot Insurance Market, By Geography
4.3 Market Dynamics
22.214.171.124 Growing Adoption of Internet of Things (Iot) Products in Developed And Developing Economies
126.96.36.199 Growing Demand of Cloud Platform And Other Value Added Services in Insurance Industry
188.8.131.52 Reduction in Premium And Risk Related Costs
184.108.40.206 Iot Enabled Devices Improves the Insurance Services
220.127.116.11 Communication Standards And Data Privacy Concerns
18.104.22.168 Increasing Need of Insurance for Various Iot Enabled Applications Such As Automobiles, Healthcare, Life, Home And Commercial Setors
22.214.171.124 New Developments in the Insurance Models
126.96.36.199 Data Generated from Iot Improves Business Intelligence in the Insurance Industry
188.8.131.52 Increasing Investments in Iot Insurance Startups
184.108.40.206 Problem Posed By Legacy Systems, And Lack in Customer Engagement, Awareness, Skills, And Procurement Policies
4.4 Regulatory Implications
5 Industry Trends
5.2 Value Chain Analysis
5.3 Industry Trends
5.3.1 New Revenue Streams And Product Opportunities
220.127.116.11 Strategic Planning Initiatives
18.104.22.168 Building Strong Relation Between Policyholder And Insurer
22.214.171.124 Risk Modules That Moves from Reactive Compensation to Proactive Protection
5.3.2 Technological Innovations
5.4 Pest Analysis
5.4.1 Political Factors
5.4.2 Economic Factors
5.4.3 Social Factors
5.4.4 Technological Factors
6 Iot Insurance Market, By Insurance Type
6.2 Property And Casualty (P&C) Insurance
6.2.1 Iot in Property And Casualty (P&C) Insurance: Case Study
6.3 Health Insurance
6.3.1 Iot in Health Insurance: Case Study
6.4 Life Insurance
6.4.1 Iot in Life Insurance: Case Study
6.5.1 Warranty Insurance
6.5.2 Farmers Insurance
6.5.3 Cyber Insurance
6.5.4 Pet Insurance
6.5.5 Savings And Investments Insurance
6.5.6 Pension Insurance
7 Iot Insurance Market, By Insurance Application
7.2 Automotive And Transportation
7.2.1 Connected Cars
7.2.2 Fleet Management
7.2.3 Insurance Telematics
7.2.4 Stolen Vehicle Recovery
7.2.5 Supply Chain Optimization And Inventory Management
7.2.6 Logistic And Navigation
7.3 Home And Commercial Buildings
7.3.1 Connected Home
7.3.2 Security And Emergency
7.3.3 Proactive Loss Prevention
7.4 Life And Health
7.4.1 Patient Health Monitoring
7.4.2 Connected Healthcare
7.4.3 Lifestyle And Fitness Monitoring
7.5 Business And Enterprise
7.5.1 Profile Authentication And Verification
7.5.2 Business-Specific Risks And Fraud Mitigation
7.5.3 Workforce Management
7.6 Consumer Electronics And Industrial Machines
7.6.1 Product Based Diagnostics
7.6.2 Warranty Management
7.7.1 Situational Awareness
7.8.1 Livestock Monitoring
7.8.2 Climate Monitoring And Forecasting
8 Iot Insurance Market, By Geography
8.2 North America
8.4 Asia Pacific
8.5 Rest of the World (Row)
9 Competitive Landscape
9.2 Ranking of Top 5 Players in the Iot Insurance Market
9.3 Competitive Analysis
9.4 Recent Developments
9.4.1 New Product Launches & Developments: Iot Insurance Market
9.4.2 Partnerships, Collaboration & Joint Ventures: Iot Insurance Market
9.4.3 Mergers & Acquisition: Iot Insurance Market
10 Company Profile
(Company at a Glance, Recent Financials, Products & Services, Strategies & Insights, & Recent Developments) -
10.2 International Business Machines Corporation
10.3 Sap Se
10.4 Oracle Corporation
10.5 Google Inc.
10.6 Microsoft Corporation
10.7 Cisco Systems Inc.
10.8 Accenture Plc
10.9 Verisk Analytics, Inc.
10.12 Zonoff, Inc.
- Details On Company at a Glance, Recent Financials, Products & Services, Strategies & Insights, & Recent Developments Might Not Be Captured in Case of Unlisted Companies.
11.1 Axa Insurance
11.1.2 Key Strategiesfor Iot Insurance :
11.2 American Family Insurance
11.2.2 Key Strategiesfor Iot Insurance :
11.3 American International Group, Inc.
11.3.2 Key Strategies for Iot Insurance :
11.4 Allianz Se
11.4.2 Key Strategies for Iot Insurance :
11.5 Berkshire Hathaway Inc.
11.5.2 Key Strategies for Iot Insurance :
11.6 Zurich Insurance Group Ltd.
11.6.2 Key Strategies for Iot Insurance:
12.1 Knowledge Store: Subscription Portal
12.2 Introducing Rt: Real Time Market Intelligence
12.3 Author Details
List of Tables:
Table 1 Iot Insurance Market Size And Growth, 2013-2022 (USD Million, Y-O-Y %)
Table 2 Global Iot Insurance Market Size By Insurance Applications, 2013-2022 (USD Million)
Table 3 Automotive And Transportation Market Size By Geography, 2013-2022 (USD Million)
Table 4 Home And Commercial Buildings Market Size By Geography, 2013-2022 (USD Million)
Table 5 Life And Health Market Size By Geography, 2013-2022 (USD Million)
Table 6 Business And Enterprise Market Size By Geography, 2013-2022 (USD Million)
Table 7 Consumer Electronics And Industrial Machines Market Size By Geography, 2013-2022 (USD Million)
Table 8 Travel Market Size By Geography, 2013-2022 (USD Million)
Table 9 Agriculture Market Size By Geography, 2013-2022 (USD Million)
Table 10 Global Iot Insurance Market Size, By Geography, 2013-2022 (USD Million)
Table 11 Ranking of Top 5 Players in the Iot Insurance Market
Table 12 New Product Launches & Developments, 2013-2016
Table 13 Partnerships, Joint Ventures, Collaborations, And Expansions, 2013-2016
Table 14 Mergers & Acquisition, 2013-2016
Table 15 Others, 2013-2016: Iot Insurance Market
List of Figures:
Figure 1 Overview of Markets Covered
Figure 2 Iot Insurance Market: Research Design
Figure 3 Market Size Estimation Methodology: Bottom-Up Approach
Figure 4 Market Size Estimation Methodology: Top-Down Approach
Figure 5 Assumptions of the Research Study
Figure 6 the Automotive And Transportation Application is Expected to Witness the Highest Growth Rate During the Forecast Period
Figure 7 North America Held the Highest Market Share for Iot Insurance in 2015
Figure 8 Iot Insurance Market, By Geography
Figure 9 Demand of Cloud Platform And Other Value Added Services in Insurance Industry Would Drive the Market
Figure 10 Value Chain of Iot Insurance Market
Figure 11 Agriculture Application in Iot Insurance Market Held the Highest CAGR During Forecast Period
Figure 12 Life And Health Market in North America Held the Highest Share in 2015
Figure 13 Agriculture Market Size is Expected to Grow at Highest CAGR in Apac Region
Figure 14 Geographic Snapshot: Iot Insurance Market Has High Growth Rate in Developing Economies
Figure 15 North America is Expected to Have a Major Share of Iot Insurance Market in 2015
Figure 16 Companies Adopted Strategic Alliances As the Key Growth Strategy Between 2013 And 2016
Figure 17 Market Evaluation Framework: (2014-2016)
Figure 18 Battle for Market Share for Iot Insurance: New Product Launches & Developments And Partnerships Were the Key Strategies
Figure 19 International Business Machines Corporation: Company Snapshot
Figure 20 International Business Machines Corporation: Swot Analysis
Figure 21 Sap Se: Company Snapshot
Figure 22 Sap Se: Swot Analysis
Figure 23 Oracle Corporation: Company Snapshot
Figure 24 Oracle Corporation: Swot Analysis
Figure 25 Google Inc.: Company Snapshot
Figure 26 Google Inc.: Swot Analysis
Figure 27 Microsoft Corporation: Company Snapshot
Figure 28 Microsoft Corporation: Swot Analysis
Figure 29 Cisco Systems Inc.: Company Snapshot
Figure 30 Accenture Plc: Company Snapshot
Figure 31 Verisk Analytics, Inc.: Company Snapshot
The global IoT insurance market is estimated to grow at a CAGR of 65.89% to reach USD 42.76 Billion by 2022. The growing adoption of Internet of Things (IoT) products in developed and developing economies, growing demand for cloud platform and other value-added services in the insurance industry are the major drivers for this market. The IoT-enabled devices provide intelligent data for insurers to help them track health, detect abnormalities, and reduce risks for policyholders. The real-time assessment of data would increase the relationship between the insurers and policyholders.
The IoT insurance market is segmented on the basis of insurance type into P&C insurance, life insurance, health insurance, and others. The property and casualty insurance uses data from IoT-based sensors, actuators, and other smart devices that are connected via the Internet for proactive management of risks and reduction in policy costs. IoT-enabled wearables and fitness devices plays a significant role in providing health-related data to insurers, helping them to monetize health and accordingly offer premiums to policyholders.
The IoT market, segmented by insurance applications, includes automotive and transportation, home and commercial buildings, life and health, consumer electronics and industrial machines, business and enterprise, agriculture, and travel. The automotive and transportation held the largest market share in 2015 due to the early adoption of usage-based insurance (UBI) with telematics in automobiles. Most of the car insurance companies in the U.S. have been offering UBI to their customers. Additionally, the in-built sensors and global positioning systems help insurers to track, locate, and analyze the vehicle and enable insurers to monitor the driving behaviors for claim process.
The APAC market is estimated to grow at the highest CAGR between 2016 and 2022. The development of IoT devices such as wearables, drones, Wi-Fi dongles, and inbuilt sensors that provide informative data to insurers would be the driving factor for the market in the APAC region.
IoT systems and software provide large amounts of real-time data that requires strong infrastructure offered by IoT vendors. These may lead to data loss and malfunctioning of the systems due to network failure and need to follow fixed communications standards for data transmission. Also, risks associated with the web of connected devices create privacy concerns, thus hindering the adoption of IoT by the insurers. These factors restrain the growth of IoT insurance in the market.
International Business Machines (IBM) Corporation (U.S.) is one of the major players in the IoT insurance market that offers IoT cloud platforms, IoT Watson, and other insurance services to insurance organizations. The company operates in five business segments, namely, Global Technology Services (GTS), Global Business Services (GBS), software, systems hardware, and global financing. IBM’s Watson IoT platform comprises data analytics software and solutions that help insurers to manage data from wearables, weather, and others in terms of insurance-specific analytics. These offerings provide easy and quick claims payments, monitoring, and risk management.
- Accenture Plc
- Allianz Se
- American Family Insurance
- American International Group, Inc.
- Axa Insurance
- Berkshire Hathaway Inc.
- Cisco Systems Inc.
- Google Inc.
- International Business Machines Corporation
- Microsoft Corporation
- Oracle Corporation
- Sap Se
- Verisk Analytics, Inc.
- Zonoff, Inc.
- Zurich Insurance Group Ltd.