The insurance market is a conservative one. A high degree of regulation, a commitment to proven solutions, and a lack of sufficient technical expertise have long held back the introduction of information technology in insurance. However, the COVID-19 pandemic and the accumulated technological advances have given digitalization a boost, making it critical. It is no longer possible to ignore today’s needs of society.
The insurance industry has stepped on the path of transformation: the automation and robotization of processes – InsurTech (Insurance Technology) – is actively gaining momentum
A number of insurance market trends make the introduction of InsurTech inevitable:
All of this has led to investment in InsurTech experiencing explosive growth. While the sector raised $1.12 billion between 1998 and 2018, funding reached $5.3 billion in Quarter 3 of 2021 (according to a Forrester Research report).
ResearchAndMarkets analysts predict that the global insurance technology market will reach $152.43 billion in 2030, with an average annual growth rate of 51.7% from 2022 to 2030.
Investments in InsurTech by large insurance companies and investment funds will be a factor in the growth of the insurance industry. Accenture analysts expect an increase in the global insurance market by $ 1.4 trillion from 2020 to 2025, including due to active introduction of technologies. Insurers’ revenue from online sales of digital products could reach $200 billion by 2025.
In terms of working with customers, information technology allows insurers to reach a totally new level of distribution, successfully interacting with more and more demanding consumers. As far as internal processes are concerned, InsurTech makes it possible to organize seamless data exchange and a high degree of integration between insurers and service providers, to build a better risk assessment system, and to automate repetitive tasks.
Trends in InsurTech global market development are segmented by type, application, end-user and geographical location. Artificial intelligence, machine learning, automation, Internet of Things, video analytics, telematics, digital platforms, mobile apps, and other digital tools affect all the chains of insurance business organization.
We have identified the key trends of InsurTech.
To summarize, it’s no exaggeration to say that the insurance market is in a “digitalization race”: companies must master new technologies in order to succeed in the current environment. The stakes in this competition are high, but solid winnings await the winners.
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