The size of the global insurance technology market, estimated at USD 8.8 billion in 2021, is expected to reach USD 166.4 billion by 2030, rising at a CAGR of 39.1% from 2022 to 2030.
Greater transparency is a result of insurance firms creating new products to satisfy the evolving demands of their clients. As a consequence, adequate data and risk management may be accomplished with the use of insurance platforms, increasing the accuracy of underwriting and loss prediction.
Using insurance platforms helps insurance businesses to become more operationally efficient and reduce the price of insurance products. This will help insurance firms generate greater earnings over the anticipated years. Many insurance firms are wary of the escalating competition, but over the next eight years, insurtech start-ups will play a crucial part in the larger ecosystem, which also includes venture capitalists, consultants, accelerators, and corporations.
Industry Statistics for Insurtech
- With a 39.1% CAGR from 2022 to 2030, the global insurance market revenue was assessed at USD 8.8 billion in 2021.
- In 2020, 31.6 million Americans of all ages lacked health insurance, according to the CDC.
- Insurtech market share in North America was above 36% in 2021.
- From 2022 to 2030, the Asia-Pacific insurance market is anticipated to rise at a notable CAGR.
- The cloud computing sub-segment accounted for USD 2.5 billion in market sales in 2021 thanks to technology.
- The BFSI sub-segment generated US$ 21 billion in revenue in 2021 based on end-use.
- In the insurance sector, one of the most important trends is the expanding use of cloud computing and AI.
Market Dynamics for Insurtech
The worldwide insurance industry is primarily driven by the expanding digitalization of business. The value of the insurance sector is also rising as a result of the expansion of insurance service providers and the rise in people looking for insurance. Digital business models have been strongly favored by a fast-rising population that is both digitally savvy and smartphone users, advancing the insurance technology sector.
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Along with developing, running, and distributing insurance goods and services, insurance also offers social insurance, ultra-customized plans, and the proactive pricing of premiums using new data streams from internet-connected devices. This element significantly increases the use of insurance solutions.
The claims are considerably helped by the rising use of AI, big data analytics, ML, and cloud computing. Insurtech players could find methods to lower extra value-added service fees as a result of the quick adoption of these technologies.
Market share for insurance
Our insurance market study indicates that in 2021, the health insurance type sub-segment will have a sizeable market share. The housing sub-segment, however, is anticipated to have substantial growth between 2022 and 2030.
Our insurance industry projection predicts that by 2030, the cloud computing technology category will have a sizable market share. The service segment with the highest revenue production in 2021 and is forecast to continue doing so is managed services. Additionally, there is a growing need for insurance platforms in the BFSI sector, and in the years to come, the popularity of the healthcare sector is predicted to rise.