Insurtech Global Market Report 2024

The insurtech market size has grown exponentially in recent years. It will grow from $13.2 billion in 2023 to $17.09 billion in 2024 at a compound annual growth rate (CAGR) of 29.5%. The expansion observed in the historical period can be attributed to strong economic growth in emerging markets, the increased digitization of insurance services, the widespread use of robotic process automation in insurance companies, and the growing number of insurtech startups.

The insurtech market size is expected to see exponential growth in the next few years. It will grow to $53.35 billion in 2028 at a compound annual growth rate (CAGR) of 32.9%. The anticipated growth in the forecast period can be attributed to the increase in insurance claims, the rising adoption of advanced technologies in the insurance industry, and favorable government initiatives. Key trends expected in this period include the use of artificial intelligence (AI), a focus on intelligent automation solutions, emphasis on product innovations, the adoption of blockchain technology, an emphasis on partnerships and collaborations, and a focus on the use of IoT (Internet of Things) technology.

The growth of the insurtech market is anticipated to be driven by an increase in insurance claims. Insurtech, which involves the use of technology to enhance various aspects of the insurance process, is particularly effective in processing claims, risk evaluation, contract processing, and policy underwriting. The surge in hospitalization cases during the COVID-19 pandemic has resulted in a notable rise in insurance claims. For instance, in the first quarter of the financial year 2021-22, 497,909 life insurance claims were settled, which escalated to 956,846 in the second quarter, as reported by The Print, an India-based online newspaper. Additionally, a study by Digit Insurance revealed a more than 3.5 times increase in health insurance claims in 2021. Consequently, the upswing in insurance claims is expected to be a key driver for the growth of the insurtech market.

Favorable government initiatives, particularly in developing countries, are poised to further fuel the growth of the insurtech market during the forecast period. In the 2021-22 budget, the Indian government, as reported by The Economic Times, increased the Foreign Direct Investment (FDI) limit in the insurance sector from 49% to 74%. Additionally, financial injections of INR 30 billion ($413.13 million) into state-owned general insurance companies and an allocation of INR 160 billion ($2.20 billion) to crop insurance schemes were announced. The Insurance Regulatory and Development Authority in India also mandated the issuance of digital insurance policies through the DigiLocker online platform. These government initiatives are expected to contribute significantly to the growth of the insurtech market.

Insurtech companies are increasingly embracing hyper-automation to meet growing client demands and offer competitive pricing. Hyper-automation, a blend of machine learning (ML), artificial intelligence (AI), and robotic process automation (RPA), enables insurtech professionals to conduct business swiftly, efficiently, and securely. According to a study by Cigniti, over 65% of insurtech companies are expected to adopt at least partial hyper-automation by 2024, driven by emerging technologies and evolving client expectations.

Companies in the insurtech market are actively pursuing product innovations and developing new solutions to enhance their market position. In September 2022, Verikai, a US-based insurance technology company, introduced a new product called Med/Rx. This innovative offering leverages machine learning technology to provide insurers with robust insights into medical claims and prescription data, focusing on high-cost conditions, prescriptions, and the most expensive medical diagnoses.

In June 2021, MGA CorvusInsurTech, a US-based insurtech services provider, acquired Wingman Insurance for an undisclosed amount. This acquisition enhances opportunities for MGA CorvusInsurTech in the small and midsize business sector, supporting their acquisition strategy and organic development. Wingman Insurance, a US-based digital insurance services provider, contributes to the expansion of CorvusInsurTech's product lines and offers the option to white label their products and services.

Major companies operating in the insurtech market report are DXC Technology, Damco Group, Majesco, Shift Technology, Earnix, Simplesurance, Outsystems, Cytora Ltd., Planck Resolution Ltd., Bdeo, Allianz (China) Insurance Holding Co., Ltd., Insurance Technology Services, Oscar Insurance, Quantemplate, Tokio Marine & Nichido Fire Insurance Co. Ltd., Aioi Nissay Dowa Insurance Co. Ltd., Sompo Japan Nipponkoa Insurance Inc., Grupo Nacional Provincial, MetLife Mexico, Seguros BBVA Bancomer, AXA Seguros, Banorte Seguros, State Farm Insurance, Nationwide Mutual Insurance Company, Liberty Mutual Group, The Progressive Corporation, American International Group Inc., Bradesco Saude, South America Health Insurance Company, Amil International Medical Assistance, Mapfre Seguros Gerais, Porto Seguro General Insurance Company, Dubai Insurance Company, Alliance Insurance PSC, Union Insurance Company, Zurich Life Insurance Middle East, Al Nabooda Insurance Brokers, National General Insurance Co, Al Buhaira Insurance, Howden Guardian Insurance Brokers LLC, Tawasul Insurance Services LLC, Al Wathba National Insurance Company.

North America was the largest region in the insurtech service market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the insurtech market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the insurtech market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The primary products in insurtech encompass health insurance, life insurance, travel insurance, car insurance, business insurance, home insurance, and others. Health insurance provides coverage for medical, surgical, prescription drug, and sometimes dental expenses incurred by the insured, depending on the coverage plan. Various technologies, including blockchain, cloud computing, IoT, artificial intelligence, big data and business analytics, among others, play a significant role in insurtech. These technologies can be deployed on-premises or in the cloud. Insurtech offers solutions and services utilized across diverse sectors such as the automotive industry, banking and financial services, government sector, healthcare industry, manufacturing industry, retail industry, transportation, and others.

The insurtech market research report is one of a series of new reports that provides insurtech market statistics, including insurtech industry global market size, regional shares, competitors with an insurtech market share, detailed insurtech market segments, market trends, and opportunities, and any further data you may need to thrive in the insurtech industry. This insurtech market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The insurtech market includes revenues earned by entities by providing solutions that integrate the traditional insurance industry with modern technologies. The term insurtech refers to applying technological innovations to extract cost and efficiency from the current insurance industry model. Insurtech intends to collect information from a variety of sources, including automotive GPS tracking and activity trackers on wristwatches. The information gathered can be utilized to create more precisely defined risk groups, allowing for more competitive pricing of products. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.