The insurance technology (Insurtech) vendors aim to provide software that should simplify the decision-making process for clients. North America is reportedly experiencing the highest rate of Insurtech adoption because of how much customers in the area are spending on insurance-related products (according to a new report).
Asia Pacific has significant potential for vendors and is projected to expand at the highest compounded annual growth rate (CAGR) from 2018–2023.
A market research report published by Infoholic notes that the global Insurtech market was valued at an estimated $532.7 million in 2018 and is on track to reach $1.1 billion by 2023, expanding at a CAGR of about 16.0% from 2018–2023. Insurance industry participants are increasingly adopting new technologies and aim to onboard new customers along with retaining the existing clients who are satisfied with their services.
It’s important for insurance service providers to adopt the latest digital technologies and to firmly establish their presence in the industry in order to gain market share.
This market research report has identified and analyzed the operations of several established insurers, including Friendsurance, Oscar, ZhongAn, Allay, Analyze Re, GetInsured, Bayzat, Bought By Many, Claim Di, and CommonEasy. This report analyzes the market by components (e.g. software and services offered), types of insurance offered (retail and commercial), by application (health insurance, property and casualty insurance, life insurance), and region (North America, Europe, Asia Pacific, Middle East and Africa, and Latin America).
North America is experiencing a steady Insurtech adoption rate because it offers flexible and customizable insurance plans for health and property. The Asia Pacific Insurtech industry is on track to grow, because of the presence of several emerging economies and financial hubs in Hong Kong, Singapore, and India. The insurance service providers in the region aim to offer affordable insurance premium plans.
Banks and financial institutions across the globe are experiencing transformation with the emergence of Fintech companies. These new business models are fundamentally changing the traditional model of operations. Insurance firms are now facing increased competition, as the market has become more mature in most countries.
The newly developed digital and analytical tools have established new revenue models and value chains via online brokers. The global Fintech sector, during the past years, has realized that Insurtech software can benefit industry participants. Insurance technology vendors provide software that can simplify the decision-making process for clients, and the analytics software also assists insurance providers in assessing and determining the current need and demand in the market.