IoT Insurance Market Overview
IoT Insurance Market Size was valued at USD 42.76 billion in 2022. The IoT Insurance market industry is projected to grow from USD 70.93 Billion in 2023 to USD 2,452.45 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 55.72% during the forecast period (2023 - 2030).
IoT in insurance is the term used to describe the usage of IoT devices by insurance businesses to gather, transmit, and share important data of insurers. The use of IoT devices also enables insurance service providers to increase employee and organizational efficiency and their understanding of risk management. Additionally, it offers many advantages to end users, such as enhanced claim management services, quick risk management services, and decreased operating costs of the company during claim settlement management services. Moreover an increasing trend of IoT in health insurance, IoT marine insurance is adopted across the globe.
Figure 1: IoT Insurance Market Size, 2022-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
IoT Insurance Market Trends
Increasing Investment by Insurance Companies in IoT Technology
The rise in IoT product adoption among businesses to receive data from a number of sources and the rise in adoption of telematics devices among the automotive and transportation sectors are some of the significant reasons that boost the IoT insurance market.
Additionally, the expansion of insurance companies' investments in IoT technology to enhance their operational effectiveness fuels the market. However, concerns about the security and privacy of customers' personal information as well as a lack of worker proficiency with IoT devices are limiting the growth of the IoT for insurance business. Contrarily, throughout the forecast period, it is anticipated that increased adoption of cutting-edge technologies in the insurance sector, such as machine learning and artificial intelligence, would present lucrative potential for the growth of the worldwide IoT insurance market.
IoT Insurance Market Segment Insights
IoT Insurance Type Insights
The property and casualty insurance segment dominated the IoT insurance market in 2022 and is expected to maintain its dominance during the forecast period. This is owing to the use of connected and telematics devices by the automotive and travel industries is expected to increase, and P&C insurance service providers are expected to quickly adopt IoT technology in order to increase their revenue opportunities. This is increasing the IoT in property insurance during the forecast period.
In May 2020, The Verisk Data Exchange Add-In is now accessible on the Geotab Marketplace, according to a press release from Verisk and Geotab. Through this new integration, fleet clients of Geotab, which offers connected car solutions for better fleet management to more than two million subscribers, can now decide to directly exchange their telematics data with insurers taking part in the Verisk Data Exchange. In order to improve underwriting, rating, and other prospective IoT driven insurance services for participating policyholders, the data will assist commercial vehicle insurers in gaining more detailed insights into fleet risks.
In April 2020, Parsyl, Inc., a US-based supply chain data platform, has introduced ColdCover by Parsyl Insurance, a line of linked cargo insurance solutions by using its IoT data platform, for perishable commodities.
Figure 2: IOT INSURANCE MARKET, BY TYPE, 2022 & 2030 (USD BILLION)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
IoT Insurance Region Insights
North America dominated the IoT insurance market on a regional level in 2022 and is anticipated to continue doing so over the course of the forecast period. This is linked to insurance companies becoming more aware of smart devices and to the United States' quicker adoption of IoT products. Additionally, a number of significant insurance providers, like Liberty Mutual, Progressive, and State Farm, have been utilising IoT technologies to increase the effectiveness of their risk assessment processes.
However, Asia-Pacific is anticipated to have considerable growth during the forecast period due to an increase in end-user adoption of IoT devices including drones, Wi-Fi dongles, wearable technology, and devices with built-in sensors that give insightful data.
Figure 3: IOT INSURANCE MARKET, BY REGION, 2022 & 2030 (USD BILLION)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
IoT Insurance Key Market Players & Competitive Insights
Due to the enormous number of local and foreign competitors, both large and small, engaging in the IoT insurance industry, it is extremely competitive. Due to the presence of so many technology in insurance, the market seems to be fragmented. IBM Corporation, Microsoft Corporation, Intel Corporation, and SAP SE are a few of the market's main participants.
Key Companies in the IoT Insurance market include
IoT Insurance Industry Developments
In December 2020: Webfleet Solutions increased its functionality by the addition of BMW and MINI CarData to its OEM.connect programme. The programme enables automakers to avoid installing aftermarket hardware by directly integrating their vehicles with Webfleet Solutions' fleet management technology, WEBFLEET. Fleet managers and insurance providers may monitor a fleet's health status in real time thanks to instant notifications related to vehicle diagnostics, such as tyre pressure warnings, which helps keep drivers safe and save vehicle downtime or additional expenditures.
In October 2020: Axon Telematics developed a quick, self-install telematics device for their client, a prominent UK motor insurance carrier, using the Aeris Fusion IoT Network, according to a statement from Aeris Communications, an Internet of Things (IoT) technology partner for businesses. Telematics deployed by technicians will be severely hampered up until government COVID-19 restrictions are abolished. To ensure that policy coverage can be provided, there is little data delay, and loss ratios are maintained to a low, Axon's self-installed telematics devices fill the gap.
In 2023, SmartLoC, a German start-up that provides a B2B payment solution based on IoT data from direct shipment tracking, and Litus, an Italian MGA that provides cargo insurance, will proudly announce their alliance with the goal of revolutionising how businesses utilise insurances and make payments. Through the integration of real-time shipment tracking and insurance analysis, our partnership intends to revolutionise the cargo insurance sector by enabling a quicker and more precise evaluation of events affecting goods during transportation.
2022, Descartes Underwriting is introducing a parametric frost insurance product for regional brokers and clients that it designed for French vineyards, from French winemakers to Australian farmers.
According to Parsyl, Inc., a suite of linked cargo insurance solutions for perishable goods will be available in 2020. The company's IoT data platform will be the driving force behind the new suite of products, which also features an innovative, first-of-its-kind parametric spoiling product that guards against temperature-related losses.
IoT Insurance Market Segmentation
IoT Insurance Type Outlook
IoT Insurance End User Outlook
IoT Insurance Regional Outlook
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North Americas
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Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
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Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
