Internet of Things (IoT) Insurance

Global Internet of Things (IoT) Insurance Market to Reach US$390.7 Billion by 2030

The global market for Internet of Things (IoT) Insurance estimated at US$44.8 Billion in the year 2023, is expected to reach US$390.7 Billion by 2030, growing at a CAGR of 36.3% over the analysis period 2023-2030. Automotive & Transportation Application, one of the segments analyzed in the report, is expected to record a 38.1% CAGR and reach US$153.2 Billion by the end of the analysis period. Growth in the Life & Health Application segment is estimated at 40.1% CAGR over the analysis period.

The U.S. Market is Estimated at US$13.5 Billion While China is Forecast to Grow at 34.5% CAGR

The Internet of Things (IoT) Insurance market in the U.S. is estimated at US$13.5 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$63.5 Billion by the year 2030 trailing a CAGR of 34.5% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 33.0% and 30.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 24.8% CAGR.

Global Internet of Things (IoT) Insurance Market - Key Trends and Drivers Summarized

How Is the Internet of Things (IoT) Reshaping the Insurance Industry?

The Internet of Things (IoT) is transforming the insurance industry by enabling more accurate risk assessments, improving customer engagement, and streamlining claims processing. IoT devices such as connected vehicles, wearable health monitors, and smart home systems provide insurers with real-time data on policyholders` behaviors and environments, allowing for more personalized and dynamic risk pricing. For example, telematics devices in vehicles track driving behavior, helping insurers offer usage-based insurance (UBI) policies that reward safe driving. In health insurance, wearables monitor physical activity and vital signs, enabling insurers to offer wellness incentives and preventative care plans. IoT solutions are also being used to automate claims processing, detect fraud, and improve customer service through real-time data collection and analysis.

How Are Technological Advancements Shaping IoT in Insurance?

Technological advancements in IoT sensors, AI, and data analytics are driving the adoption of IoT in the insurance sector. IoT sensors embedded in vehicles, homes, and wearable devices are becoming more accurate and energy-efficient, enabling continuous data collection on policyholder behavior and environmental conditions. AI-powered analytics platforms are being integrated with IoT systems to analyze vast amounts of data, providing insurers with predictive insights that help improve risk assessments, prevent fraud, and offer personalized policies. Blockchain technology is also emerging as a key innovation, offering secure, transparent data sharing between insurers and policyholders, enhancing trust and reducing fraud risks. These advancements are making IoT solutions more accessible and effective for insurers looking to improve their offerings and reduce operational costs.

How Do Market Segments Define the Growth of IoT in Insurance?

Applications include automotive insurance, health insurance, property insurance, and life insurance, with automotive insurance leading the market due to the widespread adoption of telematics and usage-based insurance policies. Components include hardware such as sensors and connected devices, software platforms for data management and analytics, and services such as system integration and support. Geographically, North America and Europe dominate the market, driven by early adoption of telematics and IoT-enabled insurance solutions, while Asia-Pacific is expected to see significant growth as insurers in the region embrace digital transformation and connected technologies.

What Factors Are Driving the Growth in the IoT Insurance Market?

The growth in the IoT insurance market is driven by several factors, including the increasing demand for personalized insurance policies, advancements in connected devices, and the need for more accurate risk assessment. As consumers seek more flexible and customized insurance options, insurers are adopting IoT solutions to offer usage-based policies that align with individual behaviors and preferences. Technological innovations in telematics, wearables, and AI-driven analytics are also fueling growth by enabling insurers to collect and analyze real-time data on policyholder behavior, improving risk assessments and preventing fraud. Additionally, the rising focus on digital transformation and the need to streamline claims processing and customer service are driving investments in IoT-enabled insurance solutions.

Select Competitors (Total 37 Featured) -

• Accenture
• Capgemini
• Cognizant
• Hippo Insurance
• IBM Corporation
• Lemonade Inc
• LexisNexis
• Oracle Corporation
• SAP SE
• Zonoff Inc

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