New York, May 09, 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Global Insurtech Market Size, Share & Industry Trends Analysis Report By Component, By End-use, By Technology, By Type, By Regional Outlook and Forecast, 2021 – 2027” – https://www.reportlinker.com/p06273359/?utm_source=GNW
In addition, Insurtech is developing solutions like ultra-customized policies, social insurance, and dynamically pricing premiums utilizing new streams of data from Internet-enabled devices. Insurtech assists insurers in collecting and analyzing consumer data that may be used to target the proper client at an affordable price. Insurtech also aids in creating better projections of consumer demands, purchasing quantities, and decision-making and insurance planning through the usage of machine learning, artificial intelligence, and cloud computing.
One of the primary trends in the industry is the rising number of insurance claims around the world. The most prevalent insurance claims filed by people all across the world are for auto, life, and house. According to the Insurance Barometer’s 2021 survey, 36% of American respondents planned to get life insurance in 2021. Moreover, insurance companies are progressively investing in digital technologies to cut costs, increase productivity, and improve the overall client experience.
The worldwide insurance market is predicted to increase significantly over the forecast period as a result of factors such as claim process simplification, improved client communication, and automation capabilities. The health insurance industry is predicted to develop at the fastest rate in the future years, as Insurtech adoption is much higher than in other insurance sectors including property and casualty, car, and others. Companies like Lemonade and Zhong An dominate the insurance market in the property and liability insurance industry. The industry’s differentiating elements include its innovations and one-of-a-kind solutions to strengthen the insurance value chain, which are attracting capital from legacy companies and investors throughout the world.
The outbreak of the COVID-19 pandemic had a favorable impact on the Insurtech business, as the importance of insurance plans has skyrocketed among customers. In addition, customers can choose from a variety of insurance policies, including health insurance, home insurance, personal insurance, and more. As a result of the rising demand for insurance policies, insurance carriers’ use of advanced technology solutions has expanded fast in the market, allowing them to offer advanced tech-based services to their consumers. As a result, during the global health crisis, demand for Insurtech solutions has skyrocketed.
In 2021, the pandemic of COVID-19 is considered to have a positive impact on market growth. As COVID-19 and its effects have expedited the installation of online platforms and new mobile applications to satisfy consumer expectations, many insurance companies are evaluating their long-term goals and short-term needs. To improve their offerings, a number of insurance companies are forming collaborations with digital solution providers.
Market Growth Factors
Growing digitalization and emerging trends among insurance companies
Insurance is one of the most conservative sectors, but insurtech firms are bringing transformation in the industry globally. According to Accenture, a consulting and professional services firm, roughly 86 percent of insurers plan to innovate and enhance existing business models in order to meet rising insurance demand and maintain a competitive position by 2020. In addition, as business models change, insurance companies all over the world are turning to innovative digital solutions to expand their operations and provide a more tailored consumer experience. Digital technology is disrupting business after industry. The majority of insurers, on the other hand, do not have innovation in their Genes. Regulators have hampered incumbents’ capacity to experiment, while a lack of competition has made it unnecessary for them to do so.
Integration of modern technologies like analytics, AI, and Big Data by insurance companies
The new wave of “Insurtech” solution providers is attempting to alter the insurance industry by using Big Data, Machine Learning, and AI capabilities. When insurance companies use the massive libraries of Big Data at their disposal and combine it with machine learning and AI skills, they may create new plans that appeal to new audiences. The majority of traditional insurance businesses do not use a lot of data when developing their policies. They rely on demographic data that is at least 40 years old. In addition, they are having difficulty appropriately pricing policies, and many may miss out on significant financial gains. To adapt to shifting customer demographics and tastes, insurance businesses must develop.
Market Restraining Factors
Changes in the legal and regulatory environment
Different laws establish different norms and rules in different countries, with financial centers adopting a more uniform approach to regulation. This becomes a critical issue for insurtech businesses to develop solutions across several regulations like MiFID II, GDPR, and others, which causes inter-regulation conflict, thereby posing a major challenge for the solutions vendors. Moreover, vendors have to be conscious of the existing as well as the current norms and regulations while innovating new solutions. Failing to meet these regulations can impose a heavy penalty on these vendors which is a big threat to the market growth.
Based on Component, the market is segmented into Solution and Services (Managed Services, Consulting, and Support & Maintenance). In 2020, the Managed Services segment obtained the highest revenue share of the Insurtech Market. By combining experience and talent with new technologies, managed services providers may provide insurers with a methodical path to change. Insurers can also benefit from the best processes, practices, and regulatory concerns of managed services providers. Simultaneously, managed services help insurers to solve IT and operations challenges and possibilities. Moreover, insurers have begun to recognize and embrace the value of better business models, resulting in chances for the managed services industry to grow.
Based on End-use, the market is segmented into BFSI, Automotive, Healthcare, Retail & eCommerce, Government & Defense, Transportation, Manufacturing, and Others. The Automotive segment collected a significant revenue share of the Insurtech Market in 2020. Insurance companies are embracing digital transformation to address the challenges that claimants frequently face in filing their claims. Vehicle insurance is one of the most expensive insurance industries, and as a result, numerous Insurtech firms are devising strategies to reduce overall costs. Startups that provide Insurtech services are reinventing the entire insurance process and developing solutions that increase transparency between insurers and customers.
Based on Technology, the market is segmented into Cloud Computing, IoT & Machine Learning, Blockchain, Robo Advisory, and Others. In 2020, the Cloud Computing segment garnered the largest revenue share of the Insurtech Market. With its efficiency, ease of deployment, and flexibility, cloud computing has revolutionized the insurance sector. The expansion is projected to be fueled by the universal popularity of Bring Your Own Device (BYOD) rules, as well as the growing amount of data that insurance companies collect. Benefits like rapid deployment, cost-effectiveness, and scalability are driving insurance businesses to use cloud computing technologies. Moreover, partnerships between cloud computing solution vendors and insurance firms, on the other hand, are assisting companies in improving their insurtech products, which is projected to boost the market growth.
Based on Type, the market is segmented into Health, Specialty, Travel, Auto, Home, and Business & Others. The Home segment collected a significant revenue share of the Insurtech Market in 2020. This is due to the fact that several home insurance companies are developing new products for commercial and residential real estate agents, as well as their renters and residents. For a speedier list-to-lease time, these companies are implementing insurtech solutions. Without the need for insurance brokers, these solutions leverage AI technology to build and provide customized insurance policies as well as quickly handle claims for customers. Farmers Insurance, for example, incorporated Zesty.ai’s wildfire risk score algorithm into their homeowner insurance underwriting processes in June 2021. The former company hopes to use this relationship to take an innovative strategy to manage its wildfire risk by assessing individual wildfire hazards to homes.
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. In 2020, North America emerged as the leading region in the overall Insurtech Market by obtaining the highest revenue share. The massive revenue share of the regional market can be attributed to the high customers are spending on insurance-related products. In addition, these solutions provide customizable and adaptable property and health insurance options. Moreover, the regional market is home to many existing and emerging insurance companies that are leaning towards the utilization of advanced technologies to provide seamless customers and reduce manual work.
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; Wipro Limited is the major forerunner in the Insurtech Market. Companies such as Majesco, OutSystems, Shift Technology are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Wipro Limited, DXC Technology Company, Oscar Health, Inc., Majesco, Insurance Technology Services, OutSystems, Shift Technology, Quantemplate, Inc., and Damco Group.
Recent strategies deployed in Insurtech Market
Partnerships, collaborations and Agreements:
Mar-2022: Shift Technology formed a solution partnership with Duck Creek Technologies, a leading global technology solutions vendor to the property and casualty (P&C) insurance industry. Following the partnership, the two companies would bring AI-enabled fraud detection capabilities to market in 2022. Working with Duck Creek, Shift Technology would become empowered to make fraud detection a seamless component of the claims process, alleviating risk and allowing phenomenal customer experiences.
Mar-2022: Shift Technology partnered with Équité Association, a national, independent organization with a vision to be world-class at reducing and preventing insurance fraud. Following the partnership, the two companies aimed to develop a national fraud detection system utilizing artificial intelligence (AI), a first for Property & Casualty (P&C) insurers and the Canadians who depend upon them. Moreover, this partnership would develop a cutting-edge consortium-based fraud analytics platform, utilizing AI to detect and prevent insurance fraud, a first in the Canadian P&C landscape.
Feb-2022: Quantemplate formed a partnership with Duck Creek Technologies, a prominent provider of software-as-a-service (SaaS) insurance core systems. This partnership would provide re/insurance carriers and agents with streamlined connectivity across their data platforms.
Feb-2022: Outsystems partnered with Insular Life, a mutual life insurance company in the Philippines. This partnership would allow InLife to harness the Outsystems low-code platform to accelerate the delivery of enterprise-grade digital solutions.
Nov-2021: Majesco came into a partnership with Larsen & Toubro Infotech to redefine Business Operations for Insurers. Moreover, this partnership would assist customers to harness the potential of new-age digital technologies and modern solutions to provide a new user experience, develop new products and services while developing their business models.
Nov-2021: Shift Technology came into a partnership with Insight Service Group, a national vendor of claim investigation and litigation support to the insurance community. This partnership would develop new opportunities for more market players in the insurance domain to leverage the sophisticated technology and the experience of dedicated professionals committed to stopping insurance fraud.
Oct-2021: Oscar Health formed a partnership with HCA Healthcare, an American for-profit operator of health care facilities, across five Texas markets. This partnership would bring HCA Healthcare’s vendors and facilities in-network for Oscar’s Individual and Family health insurance plans in Austin, Dallas-Fort Worth, Houston, El Paso, and San Antonio effective immediately.
Aug-2021: Majesco formed a partnership with Openly, a technology-enabled premium home insurance provider focused on independent agents. Following the partnership, Openly selected Majesco Billing for P&C on Majesco CloudInsurer as a core component to their advanced technology to offer higher flexibility, better service, and advanced insurance experience to its customers.
Aug-2021: Shift Technology partnered with Economical Insurance, a leading property and casualty insurer in Canada. Under this partnership, Economical Insurance would implement Shift Claims Fraud Detection, one of the solutions comprising the Shift Insurance Suite. The insurer would utilize Shift’s technology to better spot potentially dubious claims in its Personal and Commercial Auto and Property lines of business.
Aug-2021: DXC Technology partnered with Mosaic Insurance, an insurer company with a digitized corporate model and innovative leadership. Following the partnership, the two companies successfully introduced innovative new insurance technology platform that improves the speed at which specialty insurance is sold, underwritten, and serviced. This partnership would leverage the capabilities of the combined portfolio across the entire Enterprise Technology Stack and showcase how they are assisting innovative enterprises to emerge as the leaders in the marketplace.
Aug-2021: Wipro partnered with TCG Process, a leading intelligent document processing (IDP) solution provider with headquarters based in Switzerland. This partnership would improve enhance the automation portfolio of the two companies to offer rapid, accurate, and cost-effective solutions for complicated document ingestion. The partnership would also leverage each organization’s expertise in the banking, healthcare, insurance, and public administration sectors as well as their business process outsourcers and shared services organizations.
May-2021: Shift Technology formed a partnership with Cegedim Insurance Solutions, a major player in software solutions and business services for personal insurance. This partnership would leverage their expertise to provide the French health and contingency insurance market with prominent solutions for fighting fraud and money laundering activities (AML/CFT). Moreover, the native integration of our two solutions would accelerate the insurers’ transformation projects and fight fraud together, to the benefit of all policyholders.
May-2021: Majesco formed a partnership with Infosys, a global leader in next-generation digital services and consulting. Together, the two companies would allow insurance companies to help in digital adoption and transformation across the insurance value chain. Moreover, this partnership would assist the joint customers to expedite their transformation and their path to the future of insurance.
Apr-2021: Shift Technology entered into a partnership with the Insurance Fraud Bureau (IFB). Following the partnership, the two companies would work towards the development of a robust, new fraud detection system on behalf of the UK insurance sector. With technology and fraud emerging rapidly, this partnership would be a breakthrough in assisting in identifying and avoiding organized insurance fraud.
Dec-2020: Damco Solutions partnered with omni:us, an Artificial Intelligence as a Service (AIaaS) provider to speed up insurers’ adoption of data-driven cognitive claims management. Moreover, this partnership aimed to help insurers rapidly implement AI into their claim’s lifecycle simplifying the interactions between insurers and insured parties.
Apr-2020: OutSystems formed a partnership with Capita, an international business process outsourcing, and professional services company. Following the partnership, Capita deployed the OutSystems low-code platform. Moreover, the two entities would harness the potential of the platform internally and as a foundation for solutions, they provide their government, healthcare, financial services, insurance, and utility clients.
Product Launches and Product Expansions:
Aug-2021: Majesco rolled out Majesco ClaimVantage Connect, a new digital portal specific for customers utilizing Majesco ClaimVantage solutions including claims, absence, and accommodation management. Through this solution, the company aimed to empower its users to develop, update, and manage their requirements within the portal, offering insurers and TPAs an unparalleled competitive and robust solution.
Acquisitions and Mergers:
Jun-2021: Majesco took over Utilant, a U.S.-based InsurTech company offering the industry-leading survey management SaaS product suite for Loss Control and Premium Audit surveys and artificial intelligence (AI)/machine learning (ML) data and analytics. Following the acquisition, the company introduced an innovative Data and Analytics business unit combining Utilant technology with Majesco’s current, market-leading data and analytics solution. The new offering enhance Majesco’s digital capabilities, boosts operational value for insurers, and eventually enhances customer experience with proactive risk management.
Oct-2021: OutSystems expanded its geographical reach by opening a new research and development center in Bengaluru. This new facility would assist the company in expanding its footprint in India as well as leverage the technical expertise in the region for worldwide customers.
Scope of the Study
Market Segments covered in the Report:
o Managed Services
o Support & Maintenance
• Retail & eCommerce
• Government & Defense
• Cloud Computing
• IoT & Machine Learning
• Robo Advisory
• Business & Others
• North America
o Rest of North America
o Rest of Europe
• Asia Pacific
o South Korea
o Rest of Asia Pacific
o Saudi Arabia
o South Africa
o Rest of LAMEA
• Wipro Limited
• DXC Technology Company
• Oscar Health, Inc.
• Insurance Technology Services
• Shift Technology
• Quantemplate, Inc.
• Damco Group
• Exhaustive coverage
• Highest number of market tables and figures
• Subscription based model available
• Guaranteed best price
• Assured post sales research support with 10% customization free
Read the full report: https://www.reportlinker.com/p06273359/?utm_source=GNW
ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need – instantly, in one place.