Insurtech

Insurtech refers to Insurance Technology services designed to offer digital services to insurance providers. These digital services offer real-time information to the insurance providers assisting in product customization, real-time information, money and savings, improving competitiveness, and making insurance services more sustainable. As the vast information is collected through various user patterns, a better-suited insurance product is offered further improving the expansion of insurance services.

The Global Insurtech market was valued at USD 7850 million in 2023 and is expected to grow at a strong CAGR of around 40.21% during the forecast period (2024-2032). One of the key factors that has contributed to the growth of the Insurtech market is rising regulatory support by various governments across the globe. These insurance policy measures are targeted to improve the digitalization efforts as well as enable the insurance services providers to reduce the issues related to customer handling and claim disbursements. For instance, in 2024, the Insurance Regulatory Development Authority of India (IRDAI) approved eight principle-based regulations for insurance companies in India. These regulations target on adoption of standard procedures and best practices of insurance companies and distribution channels for grievance redressal risk management. The regulations also promote BIMA Sugam an online marketplace for facilitating insurance-related activities.

In another instance, in 2024, the Ministry of Business, Innovation & Employment New Zealand announced that it would modernize and improve insurance law so that consumers and businesses can effectively protect themselves against risk.

With the higher focus of the governments across the globe towards the speedy digitalization in the insurance sector for easy customer query redressal and expansion of insurance services in different sectors the demand for the Insurtech market is anticipated to rise during 2024-2032.

• Based on the Type of Insurtech the market is segmented into Auto, Business, Health, Home, Specialty, Travel, and Others. Of these health and auto insurance have held major market share across the globe. Some of the key factors attributed to the growth are increased healthcare awareness among the global population which translated into a higher number of patients opting for health insurance services further strengthening the segment. This impetus towards healthcare insurance has further led to companies opting for digital solutions to not only cater to the customers but also provide them with up-to-date services, timely disbursements, etc.
• Based on technology, the global Insurtech market has been segmented into blockchain, cloud computing, IoT, machine learning, robo advisory, and others. Of this, the Cloud computing market has held the major market share owing to the industry transformation towards digital solutions and the requirement of vast computing and storage solutions with ease of deployment and flexibility of use. With the vast amount of data being collected cloud computing services providers are supporting insurance companies to enhance their products offering with respect to various consumer purchase patterns.
• For a better understanding of the market adoption of Insurtech, the Global Insurtech market is analyzed based on its worldwide presence in regions such as North America, Europe, Asia-Pacific, and the Rest of the World. Of these, the North American region held a significant share in 2023. North America has a vast insurance industry, and it is looking forward to comprehensively supporting the integration of insurance technologies through digital solutions. Additionally, the region is home to some of the largest insurance companies across the globe. Considering the vast volume of premium collected, and the presence of ins the region is further anticipated to dominate the demand for Insurtech in the coming period.
• Some of the major players operating in the market include Damco Group, DXC Technology Company, Insurance Technology Services, Majesco, Oscar Insurance, Quantemplate, Shift Technology, InsureMo Corporation, Wipro Limited and Zhogan Insurance.