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The US Insurance Distribution Technology Market: Analysis By Function, By Application, By Technology Type, By End-User Size & Trends with Impact of COVID-19 and Forecast up to 2026

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    Report

  • 138 Pages
  • May 2022
  • Region: United States
  • Daedal Research
  • ID: 5591751
The US insurance distribution technology market in 2021 was valued at US$181.37 billion. The market is expected to reach US$261.59 billion by 2026. Insurance distribution technologies mainly focuses on improving the efficiency of the existing insurance industry model. These technologies are also focusing on improving communications with the clients and capabilities to implement automation processes.

The US region offers strong growth potential to the insurance distribution technology market. Insurance technology firms have been showing significant growth in the areas of auto, homeownership, and cyber insurance. Such strong growth would stimulate traditional insurers to either acquire technology capabilities or partner with InsurTech companies. With an increasing demand for innovative products and services from millennials, such collaboration would become a critical imperative. Due to such collaborations, traditional insurers would benefit from faster results in establishing a tech culture. The US insurance distribution technology market is projected to rise at a CAGR of 7.60% during the forecast period of 2022-2026.

Market Segmentation Analysis

  • By Function: The report provides the bifurcation of the US insurance distribution technology market into three segments based on function: Insurance Carrier Spending on Commissions; Insurance Broker Spending on Technology (Broker IT); and Insurance Carrier Spending on Advertising. In 2021, the commission segment lead the insurance distribution technology market, accounted for around 40% share of the market. The commission segment is expected to experience high growth. The rising penetration of digital and telesales models is expected to increase the share of the broker commission. It is also expected that the bulk of integrated distributors’ growth would come from the auto and individual health and Medicare markets as these both have a growing digital aspect. The US advertising insurance distribution technology market can be further divided into five applications: Auto, Health, Life, Home, and SMB Commercial P&C. The US home advertising market is expected to grow significantly over the forecast period, owing to the rising development of back-end call centers in the home insurance markets, the growing use of connected devices to streamline processes, etc.
  • By Technology Type: On the basis of technology, the market has been segmented into six parts namely Cloud Computing, Artificial Intelligence, Block Chain, Big Data & Business Analytics, IoT, and Others. Cloud computing held the major share in the market. The cloud computing market is anticipated to grow at a CAGR of 26.8% during the year 2022-2026. The growth is expected to increase as cloud computing is a valuable delivery model that insurers can use to facilitate or accelerate business transformation. Moreover, cloud computing has a huge impact on the insurance industry, with benefits for internal processes, new customer acquisition, and building policyholders’ loyalty.
  • By End-user: The report provides the segmentation of the US insurance distribution technology market based on eight end-user: BFSI, Automotive, Manufacturing, Transportation, Government, Healthcare, Retail, and Others. The healthcare segment is anticipated to grow at the highest CAGR of 19.7% during the forecasted period. The growth can be attributed to the widespread use of the platform and peer-to-peer business models and lower insurance premium rates leading to a rise in the number of policymakers.

The US Insurance Distribution Technology Market Dynamics

  • Growth Drivers: One of the most important factors impacting insurance distribution technology market dynamics is the increasing use of mobile technology and applications. By using mobile app technology, the insurance distributors can now easily reach out to their tech-savvy customers. These apps are extremely useful and viewed as invaluable assets when it comes to claims. They are capable of capturing and transferring data quickly, making the process hassle-free and expediting the complete insurance-related claims process. Furthermore, the market has been growing over the past few years, due to factors such as soaring urban population, rising millennial population, rise in the use of internet to buy insurance products, integration of artificial intelligence (AI) with insurance, etc.
  • Challenges: However, the market has been confronted with some challenges specifically, security concerns, infrastructure bottlenecks, etc.
  • Trends: The market is projected to grow at a fast pace during the forecast period, due to various latest trends such as increasing use of social media as a distribution channel, rising personalization trend, growing adoption of telematics, rising penetration of cloud-based insurance technology services, escalating demand for digital self-service, collaboration with bigtechs, surging popularity of virtual insurance advisor, emergence of subscription models, growing adoption of connected insurance, increasing use of blockchain in insurance, rising popularity of gamification in insurance industry, etc. Telematics refers to devices that merge telecommunications and information technology. With the proliferation of smartphones in the US, telematics has become a convenient method of data collection, with the ability to analyze information and compare data of users, improving underwriting with greater accuracy and efficiency. Therefore, it is expected that the growing adoption of telematics would further provide significant opportunities to the IT sector by making insurance distribution more efficient, and better coordinated.

Impact Analysis of COVID-19 and Way Forward


The US insurance distribution technology market growth was positively influenced by the COVID-19 pandemic. The COVID-19 pandemic is forcing almost all organizations to speed up their digital transformation priorities. In regards to the insurance distribution technology industry, the most significant change is the growing interest throughout the pandemic in digital products that are more dynamic. This change would lead to much greater levels of personalization and so change the customer experience and value proposition. In post-COVID era, insurers must explore technologies like virtual reality, augmented reality, and virtual-visit solutions for facilitating virtual sales and intermediary enablement.

Competitive Landscape


The US insurance distribution technology market is fragmented in nature, owing to the presence of a large number of small businesses catering to the demands of life and non-life insurance sectors.

The key players in the US insurance distribution technology market are:

  • GoHealth, Inc.
  • Brown & Brown, Inc. (Coverhound)
  • Goosehead Insurance, Inc.
  • Porch Group, Inc.
  • Clover Health Investments, Corp.
  • MediaAlpha, Inc.
  • Oscar Health, Inc.
  • Lemonade Inc.
  • Hippo Holdings Inc. (Hippo Insurance Services)
  • Root Inc.

Some of the strategies among key players in the market for insurance distribution technology market are partnerships, mergers, acquisitions, and collaborations. For Instance, Lemonade entered into an agreement in 2021 to acquire Metromile (the data science company focused on auto insurance). Whereas, GoHealth has invested in multiple sectors such as HRTech, Employer Insurance, Employee Health IT, and more. MediaAlpha is one of the largest digital aggregator companies in the market. Whereas, companies such as GoHealth, Goosehead, and Porch are integrated distributors. Insurance distribution technology firm’s ability to promote insurance industry innovation by generating new products would aid insurance companies in meeting the changing needs of their customers. As a result, various insurance distribution technology companies are gaining traction by providing a new and diverse set of services.

Table of Contents

1. Executive Summary
2. Introduction
2.1 Insurance Distribution Technology: An Overview
2.1.1 Introduction to Insurance Distribution
2.1.2 Introduction to Insurance Distribution Technology
2.2 Insurance Distribution Segmentation: An Overview
2.2.1 Insurance Distribution Segmentation
2.3 Insurance Distribution Technology Segmentation: An Overview
2.3.1 Insurance Distribution Technology Segmentation
3. The US Market Analysis
3.1 The US Insurance Distribution Market: An Analysis
3.1.1 The US Insurance Distribution Market by Value
3.1.2 The US Insurance Distribution Market by Application (Property and Casualty (P&C), Health, and Life)
3.1.3 The US Insurance Distribution Market by Segments (Retail and Commercial)
3.2 The US Insurance Distribution Market: Application Analysis
3.2.1 The US Property and Casualty (P&C) Insurance Distribution Market by Value
3.2.2 The US Health Insurance Distribution Market by Value
3.2.3 The US Life Insurance Distribution Market by Value
3.3 The US Insurance Distribution Market: Segment Analysis
3.3.1 The US Retail Insurance Distribution Market by Value
3.3.2 The US Retail Insurance Distribution Market by Application (Auto & Home, Health, Life, and SMB P&C)
3.3.3 The US Commercial Insurance Distribution Market by Value
3.4 The US Insurance Distribution Technology Market: An Analysis
3.4.1 The US Insurance Distribution Technology Market by Value
3.4.2 The US Insurance Distribution Technology Market by Function (Insurance Carrier Spending on Commissions, Insurance Broker Spending on Technology, and Insurance Carrier Spending on Advertising)
3.4.3 The US Insurance Distribution Technology Market by Technology Type (Cloud Computing, Artificial Intelligence, Block Chain, Big Data & Business Analytics, IoT, and Others)
3.4.4 The US Insurance Distribution Technology Market by End-User (BFSI, Automotive, Manufacturing, Transportation, Government, Healthcare, Retail, and Others)
3.5 The US Insurance Distribution Technology Market: Function Analysis
3.5.1 The US Commission Insurance Distribution Technology Market by Value
3.5.2 The US Broker IT Insurance Distribution Technology Market by Value
3.5.3 The US Advertising Insurance Distribution Technology Market by Value
3.5.4 The US Advertising Insurance Distribution Technology Market by Application (Auto, Health, Life, Home, and SMB Commercial P&C)
3.5.5 The US Auto Advertising Insurance Distribution Technology Market by Value
3.5.6 The US Health Advertising Insurance Distribution Technology Market by Value
3.5.7 The US Life Advertising Insurance Distribution Technology Market by Value
3.5.8 The US Home Advertising Insurance Distribution Technology Market by Value
3.5.9 The US SMB Commercial P&C Advertising Insurance Distribution Technology Market by Value
3.6 The US Insurance Distribution Technology Market: Technology Type Analysis
3.6.1 The US Cloud Computing Insurance Distribution Technology Market by Value
3.6.2 The US Artificial Intelligence Insurance Distribution Technology Market by Value
3.6.3 The US Block Chain Insurance Distribution Technology Market by Value
3.6.4 The US Big Data & Business Analytics Insurance Distribution Technology Market by Value
3.6.5 The US IoT Insurance Distribution Technology Market by Value
3.6.6 The US Others Insurance Distribution Technology Market by Value
3.7 The US Insurance Distribution Technology Market: End-User Analysis
3.7.1 The US BFSI Insurance Distribution Technology Market by Value
3.7.2 The US Automotive Insurance Distribution Technology Market by Value
3.7.3 The US Manufacturing Insurance Distribution Technology Market by Value
3.7.4 The US Transportation Insurance Distribution Technology Market by Value
3.7.5 The US Government Insurance Distribution Technology Market by Value
3.7.6 The US Healthcare Insurance Distribution Technology Market by Value
3.7.7 The US Retail Insurance Distribution Technology Market by Value
3.7.8 The US Others Insurance Distribution Technology Market by Value
4. Impact of COVID-19
4.1 Impact of COVID-19 on Insurance Industry
4.1.1 Impact of COVID-19 on Insurance Industry
4.2 Impact of COVID-19 on Insurance Technology Industry
4.2.1 Impact of COVID-19 on Insurance Technology Industry
5. Market Dynamics
5.1 Growth Driver
5.1.1 Soaring Urban Population
5.1.2 Rising Millennial Population
5.1.3 Rise in the Use of Internet to Buy Insurance Products
5.1.4 Increasing Use of Mobile Technology and Applications (Apps)
5.1.5 Integration of Artificial Intelligence (AI) with Insurance
5.2 Challenges
5.2.1 Security Concerns
5.2.2 Infrastructure Bottlenecks
5.3 Market Trends
5.3.1 Increasing Use of Social Media as a Distribution Channel
5.3.2 Rising Personalization Trend
5.3.3 Growing Adoption of Telematics
5.3.4 Rising Penetration of Cloud-based Insurance Technology Services
5.3.5 Escalating Demand for Digital Self-Service
5.3.6 Collaboration with BigTechs
5.3.7 Surging Popularity of Virtual Insurance Advisor
5.3.8 Emergence of Subscription Models
5.3.9 Growing Adoption of Connected Insurance
5.3.10 Increasing Use of Blockchain in Insurance
5.3.11 Rising Popularity of Gamification in Insurance Industry
6. Competitive Landscape
6.1 The US Insurance Distribution Technology Market Players by Business Models
7. Company Profiles
7.1 GoHealth, Inc.
7.1.1 Business Overview
7.1.2 Operating Segment
7.1.3 Business Strategy
7.2 Brown & Brown, Inc. (Coverhound)
7.2.1 Business Overview
7.2.2 Operating Segment
7.2.3 Business Strategy
7.3 Goosehead Insurance, Inc.
7.3.1 Business Overview
7.3.2 Operating Segment
7.3.3 Business Strategy
7.4 Porch Group, Inc.
7.4.1 Business Overview
7.4.2 Operating Segment
7.4.3 Business Strategy
7.5 Clover Health Investments, Corp.
7.5.1 Business Overview
7.5.2 Operating Segment
7.5.3 Business Strategy
7.6 MediaAlpha, Inc.
7.6.1 Business Overview
7.6.2 Operating Segment
7.6.3 Business Strategy
7.7 Oscar Health, Inc.
7.7.1 Business Overview
7.7.2 Business Strategy
7.8 Lemonade Inc.
7.8.1 Business Overview
7.8.2 Business Strategy
7.9 Hippo Holdings Inc. (Hippo Insurance Services)
7.9.1 Business Overview
7.9.2 Business Strategy
7.10 Root Inc.
7.10.1 Business Overview
7.10.2 Business Strategy
List of Figures
Figure 1: Insurance Distribution Segmentation
Figure 2: Insurance Distribution Technology Segmentation by Function
Figure 3: Insurance Distribution Technology Segmentation by Technology Type & End-User
Figure 4: The US Insurance Distribution Market by Value; 2017-2021 (US$ Billion)
Figure 5: The US Insurance Distribution Market by Value; 2022-2026 (US$ Billion)
Figure 6: The US Insurance Distribution Market by Application; 2021 (Percentage, %)
Figure 7: The US Insurance Distribution Market by Segments; 2021 (Percentage, %)
Figure 8: The US Property and Casualty (P&C) Insurance Distribution Market by Value; 2017-2021 (US$ Billion)
Figure 9: The US Property and Casualty (P&C) Insurance Distribution Market by Value; 2022-2026 (US$ Billion)
Figure 10: The US Health Insurance Distribution Market by Value; 2017-2021 (US$ Billion)
Figure 11: The US Health Insurance Distribution Market by Value; 2022-2026 (US$ Billion)
Figure 12: The US Life Insurance Distribution Market by Value; 2017-2021 (US$ Billion)
Figure 13: The US Life Insurance Distribution Market by Value; 2022-2026 (US$ Billion)
Figure 14: The US Retail Insurance Distribution Market by Value; 2017-2021 (US$ Billion)
Figure 15: The US Retail Insurance Distribution Market by Value; 2022-2026 (US$ Billion)
Figure 16: The US Retail Insurance Distribution Market by Application; 2021 (Percentage, %)
Figure 17: The US Commercial Insurance Distribution Market by Value; 2017-2021 (US$ Billion)
Figure 18: The US Commercial Insurance Distribution Market by Value; 2022-2026 (US$ Billion)
Figure 19: The US Insurance Distribution Technology Market by Value; 2017-2026 (US$ Billion)
Figure 20: The US Insurance Distribution Technology Market by Value; 2022-2026 (US$ Billion)
Figure 21: The US Insurance Distribution Technology Market by Function; 2021 (Percentage, %)
Figure 22: The US Insurance Distribution Technology Market by Technology Type; 2021 (Percentage, %)
Figure 23: The US Insurance Distribution Technology Market by End-User; 2021 (Percentage, %)
Figure 24: The US Commission Insurance Distribution Technology Market by Value; 2017-2021 (US$ Billion)
Figure 25: The US Commission Insurance Distribution Technology Market by Value; 2022-2026 (US$ Billion)
Figure 26: The US Broker IT Insurance Distribution Technology Market by Value; 2017-2021 (US$ Billion)
Figure 27: The US Broker IT Insurance Distribution Technology Market by Value; 2022-2026 (US$ Billion)
Figure 28: The US Advertising Insurance Distribution Technology Market by Value; 2017-2026 (US$ Billion)
Figure 29: The US Advertising Insurance Distribution Technology Market by Value; 2022-2026 (US$ Billion)
Figure 30: The US Advertising Insurance Distribution Technology Market by Application; 2021 (Percentage, %)
Figure 31: The US Auto Advertising Insurance Distribution Technology Market by Value; 2017-2021 (US$ Billion)
Figure 32: The US Auto Advertising Insurance Distribution Technology Market by Value; 2022-2026 (US$ Billion)
Figure 33: The US Health Advertising Insurance Distribution Technology Market by Value; 2017-2021 (US$ Billion)
Figure 34: The US Health Advertising Insurance Distribution Technology Market by Value; 2022-2026 (US$ Billion)
Figure 35: The US Life Advertising Insurance Distribution Technology Market by Value; 2017-2021 (US$ Million)
Figure 36: The US Life Advertising Insurance Distribution Technology Market by Value; 2022-2026 (US$ Million)
Figure 37: The US Home Advertising Insurance Distribution Technology Market by Value; 2017-2021 (US$ Million)
Figure 38: The US Home Advertising Insurance Distribution Technology Market by Value; 2017-2021 (US$ Million)
Figure 39: The US SMB Commercial P&C Advertising Insurance Distribution Technology Market by Value; 2017-2021 (US$ Million)
Figure 40: The US SMB Commercial P&C Advertising Insurance Distribution Technology Market by Value; 2022-2026 (US$ Million)
Figure 41: The US Cloud Computing Insurance Distribution Technology Market by Value; 2017-2021 (US$ Billion)
Figure 42: The US Cloud Computing Insurance Distribution Technology Market by Value; 2022-2026 (US$ Billion)
Figure 43: The US Artificial Intelligence Insurance Distribution Technology Market by Value; 2017-2021 (US$ Billion)
Figure 44: The US Artificial Intelligence Insurance Distribution Technology Market by Value; 2022-2026 (US$ Billion)
Figure 45: The US Block Chain Insurance Distribution Technology Market by Value; 2017-2021 (US$ Billion)
Figure 46: The US Block Chain Insurance Distribution Technology Market by Value; 2022-2026 (US$ Billion)
Figure 47: The US Big Data & Business Analytics Insurance Distribution Technology Market by Value; 2017-2021 (US$ Billion)
Figure 48: The US Big Data & Business Analytics Insurance Distribution Technology Market by Value; 2022-2026 (US$ Billion)
Figure 49: The US IoT Insurance Distribution Technology Market by Value; 2017-2021 (US$ Billion)
Figure 50: The US IoT Insurance Distribution Technology Market by Value; 2022-2026 (US$ Billion)
Figure 51: The US Others Insurance Distribution Technology Market by Value; 2017-2021 (US$ Billion)
Figure 52: The US Others Insurance Distribution Technology Market by Value; 2017-2021 (US$ Billion)
Figure 53: The US BFSI Insurance Distribution Technology Market by Value; 2017-2021 (US$ Billion)
Figure 54: The US BFSI Insurance Distribution Technology Market by Value; 2022-2026 (US$ Billion)
Figure 55: The US Automotive Insurance Distribution Technology Market by Value; 2017-2021 (US$ Billion)
Figure 56: The US Automotive Insurance Distribution Technology Market by Value; 2022-2026 (US$ Billion)
Figure 57: The US Manufacturing Insurance Distribution Technology Market by Value; 2017-2021 (US$ Billion)
Figure 58: The US Manufacturing Insurance Distribution Technology Market by Value; 2022-2026 (US$ Billion)
Figure 59: The US Transportation Insurance Distribution Technology Market by Value; 2017-2021 (US$ Billion)
Figure 60: The US Transportation Insurance Distribution Technology Market by Value; 2022-2026 (US$ Billion)
Figure 61: The US Government Insurance Distribution Technology Market by Value; 2017-2021 (US$ Billion)
Figure 62: The US Government Insurance Distribution Technology Market by Value; 2022-2026 (US$ Billion)
Figure 63: The US Healthcare Insurance Distribution Technology Market by Value; 2017-2021 (US$ Billion)
Figure 64: The US Healthcare Insurance Distribution Technology Market by Value; 2022-2026 (US$ Billion)
Figure 65: The US Retail Insurance Distribution Technology Market by Value; 2017-2021 (US$ Million)
Figure 66: The US Retail Insurance Distribution Technology Market by Value; 2022-2026 (US$ Billion)
Figure 67: The US Others Insurance Distribution Technology Market by Value; 2017-2021 (US$ Million)
Figure 68: The US Others Insurance Distribution Technology Market by Value; 2022-2026 (US$ Million)
Figure 69: The US Urban Population; 2015-2022 (Percentage, %)
Figure 70: The US Millennial Population; 2020-2035 (Million)
Figure 71: The US Number of Internet Users; 2018-2025 (Million)
Figure 72: The US Social Network Users; 2018-2023 (Million)
Figure 73: Potential Business and Technology Benefits of Cloud
Figure 74: GoHealth Inc. Net Revenues by Segment; 2021 (Percentage, %)
Figure 75: Brown & Brown, Inc. Total Revenues by Segment; 2021 (Percentage, %)
Figure 76: Goosehead Insurance, Inc. Total Revenues by Segments; 2021 (Percentage, %)
Figure 77: Porch Group, Inc. Revenue by Segment; 2021 (Percentage, %)
Figure 78: Clover Health Investments, Corp. Total Revenues by Segment; 2021 (Percentage, %)
Figure 79: MediaAlpha, Inc. Revenue by Vertical Segment; 2021 (Percentage, %)
Table 1: Technologies Supporting Insurers’ Battle with COVID-19
Table 2: The US Insurance Distribution Technology Market Players by Business Models

Executive Summary

The report titled “The US Insurance Distribution Technology Market: Analysis By Function, By Application, By Technology Type, By End-User Size & Trends with Impact of COVID-19 and Forecast up to 2026” provides an in depth analysis of the US insurance distribution technology market by value, by application, by function, by technology type, by end-user, etc. The report also provides a detailed analysis of the COVID-19 impact on the insurance distribution technology market.

Scope of the Report:

The report titled “The US Insurance Distribution Technology Market: Analysis By Function, By Application, By Technology Type, By End-User Size & Trends with Impact of COVID-19 and Forecast up to 2026”, includes:
  • An in-depth analysis of the US insurance distribution technology market by value, by application, by function, by technology type, by end-user, etc.
  • Provides an analysis of the COVID-19 impact on the US insurance distribution technology market.
  • Assesses the key opportunities in the market and outlines the factors that are and will be driving the growth of the industry. Growth of the overall insurance distribution technology market has also been forecasted for the period 2022-2026, taking into consideration the previous growth patterns, the growth drivers, and the current and future trends.
  • Evaluation of the potential role of insurance distribution technology services to improve the market status.
  • Identification of new technological developments, R&D activities, and product launches occuring in the insurance distribution technology market.
  • In-depth profiling of the key players, including the assessment of the business overview, market strategies, regional and business segments of the leading players in the market.
  • The recent developments, mergers and acquisitions related to mentioned key players are provided in the market report.
  • The in-depth analysis provides an insight into the Market, underlining the growth rate and opportunities offered in the business.

Companies Mentioned

  • Brown & Brown, Inc(Coverhound)
  • Clover Health Investments, Corp.
  • GoHealth, Inc.
  • Goosehead Insurance, Inc.
  • Hippo Holdings Inc(Hippo Insurance Services)
  • Lemonade Inc.
  • MediaAlpha, Inc.
  • Oscar Health, Inc.
  • Porch Group, Inc.
  • Root Inc.

Methodology

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