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.
Recent Market Developments
- Florida's Clover Health, a pioneer in developing innovative technologies, and ValueH, a well-known provider of value-based care, collaborated in August 2021 to provide value-based care and health equity for American seniors.
- NEXT Insurance, a California-based insurtech, and LegalZoom collaborated in February 2023 to assist small company owners in building and securing their online presence.
More Valuable Insights on Offer
Fact.MR, in its new offering, presents an unbiased analysis of the global insurtech market, presenting historical demand data (2018 to 2022) and forecast statistics for the period (2023 to 2033).
The study divulges essential insights on the market based on insurance type (health, life, travel, auto, business, home), service (consulting, support & maintenance, managed services), technology (blockchain, cloud computing, IoT, artificial intelligence, machine learning, robo advisory, big data & business analytics), and end-use industry (automotive, BFSI, healthcare, manufacturing, retail, transportation), across five major regions of the world (North America, Europe, Asia Pacific, Latin America, and MEA).
These insights are based on a report on Insurtech Market by Fact.MR.