ID: MRFR/ICT/7273-HCR | February 2021 | Region: Global | 100 pages
InsureTech or Insurance Technology is a subset of fintech or financial technology. InsureTech relates to the use of technologies such as AI, IoT, cloud, and blockchain which helps in simplifying and improving the efficiency of the insurance industry. These technologies help insurance companies to provide interactive and enhanced services to its clients such as interactive chatbots, behavioral premium pricing, customized claims settlement, and fraud and risk identification and management which helps the insurance providers to remain competitive in the market, drive operational excellence, and boost growth.
The need among insurance service providers to offer personalized insurance services and automate the operational process by adopting digital technologies is increasing which is a major factor driving the growth of the InsureTech market. Customers or policyholders today are ready to adopt new insurance models. A recent survey found that 41% of the customers are considering usage-based insurance and over 37% of the customers are ready to explore the on-demand insurance coverage model although they are at a nascent stage. Insurance companies adopting advanced technologies are exploring new business models such as usage-based, on-demand, parametric, and microinsurance to cover the gaps and customer demands for personalization and convenience. The usage-based insurance models offer as-you-go coverage or premium based on a customer’s propensity for taking risk. The on-demand models allow the customers to get cost-effective and convenient coverage as and when they require. The parametric insurance model covers previously uninsured risks, based on the predefined parameters or an objective-triggering event, whereas, the microinsurance model offers smaller insurance packages with lower premiums and provides coverage to those with low-income brackets and limited access to conventional insurance services or the means to manage risks. The risks related to data leaks and security breaches is a major challenge that vendors are working on to ensure security, however, lack of technical expertise can hamper the market growth. The market is expected to witness growth opportunities due to advances in AI technology. The InsureTech market is expected to be influenced by the advent of emerging technologies such as big data, blockchain, AI, and IoT. Interactive chatbots, behavioral premium pricing, customized claims settlement, fraud and risk identification and management, and UAVs and smart devices for extreme surveillance are the emerging trends in the global InsureTech market.
The Prominent Players active in the Global Market of InsureTech are Microsoft Corporation (US), Amazon Web Services Inc. (US), IBM Corporation (US), Wipro Limited (India), Tractable (UK), Oracle Corporation (US), Google (US), Untangl Limited (UK), Quantemplate (UK), Intel Corporation (US), Baidu (China), BIMA (UK), Shift Technology (France), Pentation Analytics Pvt Ltd (India), and eWise (Switzerland).
The Global InsureTech Market has been segmented on the basis of Component, Deployment, Technology, Insurance Type, and Region.
By component, the market has been segmented into software and services.
By deployment, the market has been bifurcated into on-cloud and on-premise.
By technology, the market has been segmented into cloud computing, blockchain, artificial intelligence, internet of things, and others.
By insurance type, the market has been segmented into property and casualty insurance, health and life insurance, commercial insurance, and others.
By region, the market has been segmented into North America, Europe, Asia-Pacific, and the rest of the world. The market in the rest of the world has been further classified into the Middle East and Africa, and South America.
Market Research Future (MRFR) study has covered the following countries in the regional analysis of the InsureTech market: In North America, we have considered the US, Canada, and Mexico. Germany, the UK, France, Spain, and Italy in Europe. In Asia-Pacific China, Japan, India, South Korea, and Australia are considered. In the rest of the world, we have considered South America and the Middle East and Africa region.
North America currently dominates the global InsureTech market and has a significant market share. This is due to the presence of major key players in the market, investing heavily in the research and development of advanced technology platforms for insurance services for boosting customer satisfaction and operational performance. The region has highly skilled technical expertise, is an early adopter of technology, and is also witnesses rising adoption of advanced technologies such as AI, blockchain, and IoT which drives market growth. Europe is also expected to have a significant share in the market. European government is increasingly taking initiatives to adopt cloud-based services. Also, the increasing adoption of insurance services are driving the market growth in the regional market
Asia-Pacific is projected to be the fastest-growing regional market during the forecast period. Growing economies such as China, Japan, and India are focusing on insurers providing insurance plans at affordable rates. Furthermore, increasing adoption of digitalization and advanced technologies such as cloud, mobile, and AI thereby increases the adoption of digital insurance platform. The global InsureTech market in the rest of the world is also expected to grow at a considerable rate during the forecast period due to the rising demand for digital and personalized insurance services.
Frequently Asked Questions (FAQ) :
InsureTech is used in the insurance industry to offer enhanced and interactive services to the clients such as behavioral premium pricing, interactive chatbots, fraud and risk identification and customized claims settlement. This helps insurance companies to gain impetus in the market.
The high chances of security breaches as well as data leaks can be a major challenge for the market growth in the years ahead.
The InsureTech market growth can be boosted by the surging deployment of advanced technologies such as blockchain, big data, IoT and AI. Interactive chatbots, customized claims settlement, behavioral premium pricing, UAVs and smart devices as well as fraud and risk identification and management for surveillance can also be important growth boosters in the market.
The key industry participants are IBM Corporation (US), BIMA (UK), Tractable (UK), eWise (Switzerland), Google (US), Untangl Limited (UK), Oracle Corporation (US), Quantemplate (UK), Intel Corporation (US), Baidu (China), Amazon Web Services Inc. (US), Shift Technology (France), Pentation Analytics Pvt Ltd (India), Wipro Limited (India), Microsoft Corporation (US), and more.
The market size in Europe is considerable as a result of the increasing number of government initiatives that promote the use of cloud-based services. Moreover, the rising uptake of insurance services among people also influence the regional market.