The Brainy Insights: Insurtech market to hit $82.3bn by 2032

Market research company The Brainy Insights anticipates the global insurtech market to reach US$82.3bn in its latest report.

This would constitute a compound annual growth (CAGR) of a mammoth 28.9% in the nine years between 2023 and 2032. 

But, why does the company anticipate such a rapid rise in a market worth (only) US$6.5bn today, and how will the insurtech industry achieve it? 

Insurtech growth: North America

Per The Brainy Insights, the bulk of this growth will be concentrated in North America, which emerged as the leading insurtech region in 2022, accounting for 55% of market revenue share in 2022. 

North American businesses – particularly insurers – are expected to continue requiring the services of insurtechs over the next nine years, namely for their automation, prompt, and enhanced efficiency services. 

Dominant insurtech players in the insurtech market are expected to entrench their leading positions, the likes of DXC Technology Company, Insurance Technology Services, Majesco and Oscar Insurance included.

A robust internet infrastructure combined with the rising integration of modern technologies in the insurance sector is expected to safeguard significant growth in the region, contributing to insurtech’s 28.9% CAGR. 

Insurtech growth: A health segment rise

Another key driver of insurtech growth is expected to come from insurtech solutions for the health sector. Healthcare specialist insurtechs dominated revenue for 2022, generating US$2.27bn for the year. 

This trend is expected to continue as consumer express their preference for personalised healthcare and insurance, favouring access to their healthcare through wearable technology and using telemedicine channels.

The demand for greater health insurtech solutions has been pushed by increased demand for effective health insurance administration, particularly in the aftermath of global health disasters – namely the COVID-19 pandemic. 

Insurtech growth: Cloud computing

What’s more, the rise of cloud computing services is expected to propel market growth further. Cloud computing provides scalable, flexible and cost-effective solutions to fit the exact needs of insurers – and the number and profitability of cloud-computing companies is only expected to grow. 

The cloud computing segment of the insurtech market generated US$2.6bn in revenue for 2022, and as cloud-native architectures continue to advance, so too will the demand for such services from insurers grow. 

Insurtech growth: The takeaway

In summary, the growth of the insurtech market will be dependent on the following dynamics:

.The proliferation of wearable technology, and customer demand for compatible insurtech products

. Increased technology integration including big data, analytics, cloud computing and IoT – particularly in the healthcare segment 

. And, the consolidation of many established insurtechs, particularly those based in North America. 

However, there are caveats to this anticipated growth, namely the emergence of stricter regulations on the insurtech sector which could affect growth. These regulations would primarily impact insurers’ access to client data, given concerns about consumer privacy. 

Despite the drawbacks, it seems the insurtech market is set to grow substantially by 2032, potentially making it one of the fastest-growing markets over the next nine years. 

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For more insights from InsurTech Digital, you can see our latest edition of the InsurTech Digital here, or you can follow us on LinkedIn and Twitter. 

You may also be interested in our sister site, FinTech Magazine, which you can also follow on LinkedIn and Twitter.

Please also take a look at our upcoming virtual event, InsurTech LIVE, coming on 18th October 2023. 

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