The global insurtech market will be worth a staggering US$152bn by 2030 if the current growth trajectory continues, a new report has found. This is positive news for the insurtech space, which has, in recent months, taken a battering investment-wise as the global economic crisis has progressed.
The data, which was released by the think tank View Research, Inc. concludes that the rising awareness of insurtech, and the current 51.7% CAGR, will see the global insurance industry explode by 2030.
Part of the reason for this is the fact that the market is benefitting from the rising interest of global investors in insurtech companies. In May 2021, for example, Shift Technology, a provider of artificial intelligence SaaS tools for insurance companies, raised US$ 220mn. The company has used this capital to expand into the property and casualty insurance and health markets. The case study, the researchers say, is indicative of scaling strategies across the insurance sectors.
Better technololgy and innovation is driving growth in insurtech
According to the report, innovation within the insurance space, driven by a burgeoning digital ecosystem, has resulted in claims processing being simplifies, and a rising awareness of the benefits insurtechs offer, among business and consumer customers. Improving communication, and implementing automation is expected to drive market growth. The increased use of robotic process automation in insurance companies to handle repetitive tasks more accurately, quickly, and accurately compared to humans is also one of the major factors driving the market growth.
Key industry predictions on Insurtech industry
View Research found that the health insurnace sector has dominated the market in 2021. This growth can be attributed to the increasing awareness about healthy lifestyle habits on a globe-wide basis due to COVID-19, which requires insurance companies in the healthcare to invest more in enhanced technologies.
The second fastest-growing sector looks set to be managed services, which dominated the market in 2021. He report states: “The increasing usage of intelligent machines and the rise of automation in the field of insurtech increased the adoption of managed services in various end-use industries in 2021.”
Blockchain will drive further growth and connectivity in insurtech
In terms of innovation and technology drivers of progress, blockchain looks set to witness the fastest growth over the forecast period. Furthermore, insurance companies are embracing the technology as a means to increase customer engagement, and to create a competitive edge.
Pricing will become more transparent within insurtech
Another area of significant change within insurtech, will be in the payments area. View Research’s data indicates that political and consumer trends are forcing the healthcare industry to become more transparent about pricing. “Moreover, new approaches adopted by startups in the insurance sector are expected to drive the segment growth over the forecast period,” it states.
Better communication for customers in insurtech
Finally, North America is already seeing an uptick in demand for better communication, seamless data sharing, and high integration between insurers and service providers for improved customer engagement.