The global insurtech market is valued at US$ 8.6 billion in 2023 and is projected to reach US$ 34.7 billion by the end of 2033.
The insurance industry, known for its traditional and conservative nature, is undergoing significant transformation with the emergence of insurtech. Insurtech refers to the use of innovative technologies, such as artificial intelligence (AI), data analytics, and automation, to upgrade and optimize various processes in the insurance value chain. This wave of technological innovation is empowering start-up companies to challenge incumbents and revolutionize the insurance market.
One of the key drivers of the insurtech market is changing consumer expectations. Today’s consumers demand seamless and convenient experiences and they expect the same from their insurance providers. Insurtech companies are using digital channels to offer online information, purchase policies, and manage claims, making insurance more accessible and convenient for customers.
The Internet of Things (IoT) is also driving the growth of the insurtech market. Connected devices such as wearables, telematics devices, and smart home devices, are generating vast amounts of data that can be used to assess risks, prevent losses, and offer personalized insurance solutions. Insurtech service providers are harnessing this data to create usage-based insurance, pay-as-you-go policies, and preventive insurance, resulting in more accurate pricing and customized coverage.
Key Takeaways from Market Study
· Sales of insurtech services are predicted to increase at a CAGR of 15% from 2023 to 2033.
· The United Kingdom is a prominent insurtech market in the European region due to the introduction of value-added customer services.
· With a high number of insurtech companies, Singapore leads the insurtech market in the Asia Pacific region.
· Key market players and start-ups are reshaping the insurance sector in the United States.
“Blockchain technology is effective in simplifying claim process, and enhancing trust and security in the insurance value chain,” says a Fact.MR analyst.
