According to Future Market Insights (FMI), the insurtech market is forecasted to reach a net worth of US$ 165.4 Bn in 2032 from a mere market value of US$ 12.5 Bn in 2021. It is predicted to with an impressive CAGR of 25.9% during the forecast period.
The growth of general awareness among common people about the benefits of insurance policies has created a huge demand for general insurance policies provided by several companies across the globe. Insurance companies have also increased their market presence by the application of digital insurtech or insurance technology infrastructure with the changing economic scenario.
Over the years of service and development of commercial insurance, insurtechs companies have intensified in terms of offering customized policies to the customers. Adoption of such technology for collecting and analyzing customer data for insurtech life insurance companies has further boosted the business attraction of the global insurtech market.
The emergence of a number of small and regional players operating in various categories such as insurtech car insurance or home insurance insurtech companies have fragmented the market, making it highly competitive.
Most of the key players are strengthening their market by establishing partnerships and collaborations with the banking and financial institutions for introducing new specific commercial insurance insurtech solutions.
“Rapid digitization of all major service sectors of economy has also shifted the business model of insurance providing companies across the globe. Addition of professional and consulting services to the potential customers over online platforms have necessitated the integration of insurance technology solutions further propelling the growth of global insurtech market.”
According to the market survey report of the EIS group for Insurance companies, almost 59% of the companies were found to have increased their spending on establishing digital infrastructure. This includes a record proliferation of P&C insurtech companies in the global market.
As per the market analysis report, the absolute growth of the global insurtech market size in terms of value is predicted to be around US$ 148.8 Bn over the forecast years 2022 to 2032.
As the concept of insurtech insurance companies is expanding to new areas of service, the solution segment is growing at a faster rate than the service segment. The CAGR predicted for the solution segment is nearly 25.8% for the coming decade.
On the basis of various technologies adopted by life insurance tech companies, cloud computing has emerged to be the most attractive segment in the present market. The estimated growth of this segment over the forecast years is nearly 25.2%.
US market holds the dominant position in the global market for having the highest amount of insurtech capital, valued at about US$ 6 Bn in the year 2022. It is also the top-performing country with a CAGR of 25.6% that is predicted to reach the net worth of the regional insurtech market up to US$ 58.6 Bn by the end of this forecast period.
The major players operating in the global insurtech market include Damco Group, DXC Technology Company, Majesco, Oscar Insurance, Quantemplate, Shift Technology, Trov Insurance Solutions, LLC, Wipro Limited, and Zhongan Insurance, among others.
One of the top insurance companies in the USA named, Universal Fire & Casualty Insurance Company, announced to accept cryptocurrency payments for premiums, starting a new business model for home insurance insurtech companies in the US market. Integration of such advanced digital facilities and blockchain technologies is expected to further boost the global insurtech market.
An automobile insurance company named Metromile also announced in December 2021 to accept cryptocurrency from its customers to pay their premiums and claim payments. This new development is anticipated to give way to some new opportunities in the domain of insurtech