The global Insurtech market size is projected to reach USD 11940 Million by 2027, from USD 1462.3 Million in 2020, at a CAGR of 34.4% during the forecast period 2021-2027, according to Valuates Reports.
Major factors driving the growth of Insurtech are:
The growing demand for insurance service digitization is projected to drive market expansion. Insurtech aids in the simplification of the insurance purchasing and claims processes.
Insurtech helps create new avenues that large insurance companies have less incentive to achieve, such as offering social insurance and ultra-customized policies. These solutions use new streams of information from internet-enabled devices to price premiums. By lowering acquisition costs typically by providing customers with a digital interface and using a direct model Insurtech is much more cost-effective than the traditional model.
Trends influencing the growth of the insurtech market
With digital brokerage and insurance marketplaces for clients, Insurtech businesses are working on reducing the gaps between customers and insurance providers. Because of the oversaturation of the insurance market and fierce competition among insurers, they have been pushed to incorporate digital technologies that focus on the client interface. Insurtech software products are intended to assist insurers in gaining additional clients through partnerships and improving claim processing. This simplification of the claims process enabled by Insurtech is expected to drive the Insurtech market
Many Insurtech firms are working on employing deep learning-capable artificial intelligence (AI) to help agents manage their responsibilities more quickly and discover the right mix of policies to complete an individual’s coverage. Over the projected period, the rising use of applications to combine disparate policies into a single platform for monitoring and management is expected to drive Insurtech market expansion.
