Digital Insurance Market to Grow by USD 67.23 Billion (2024-2028) as Rising Policy Numbers Boost Revenue; AI-Powered Market Evolution Report - Technavio

NEW YORK, Oct. 29, 2024 /PRNewswire/ -- Report on how AI is driving market transformation -The global digital insurance market size is estimated to grow by USD 67.23 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 12.8% during the forecast period. Increase in number of insurance policies is driving market growth, with a trend towards emergence of LCNC development in digital insurance sector. However, regulatory compliance in digital insurance sector poses a challenge.Key market players include ACKO General Insurance Ltd, Allianz SE, AXA Group, DeadHappy Ltd., Ethos Technologies Inc, Getsafe Digital GmbH, Go Digit General Insurance Ltd., Haven Life Insurance Agency LLC, Hippo Enterprises Inc, ICICI Prudential Life Insurance Co. Ltd, Insured Nomads Corp, Kin Insurance Technology Hub LLC, Ladder Insurance Services, LLC, Lemonade Inc., Life Insurance Corp. Of India, New York Life Insurance Co, NEXT Insurance, OPES insurance, Oscar Insurance Corp., RELX Plc, Root inc, Sure inc, The Allstate Corp., Turtlemint Insurance Broking Services Pvt Ltd, Vitality Health Limited, wefox Insurance AG, Westland Insurance, Willis Towers Watson Public Ltd. Co., and Yu Life ltd.

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Key Market Trends Fueling Growth

The digital insurance market is experiencing a major shift with the adoption of low-code and no-code (LCNC) development platforms. These tools enable users to build applications through graphical interfaces and configuration, rather than traditional coding. This simplifies application development, allowing insurance companies to quickly deploy new customer portals and apps. LCNC platforms also automate routine tasks, such as claims processing and underwriting, improving efficiency and reducing operational costs. In the insurance industry, these platforms are essential in meeting the growing demand for digitalization. By 2025, it's projected that 70% of new business applications will utilize LCNC platforms, up from less than 25% in 2020. Furthermore, 80% of non-IT professionals are expected to be involved in app development by 2025, highlighting the accessibility and widespread adoption of these tools. These trends will positively impact the growth of the global digital insurance market, enabling insurers to create engaging and interactive digital experiences for their customers. 

In the insurance industry, cybercrime is a major concern, requiring transformation efforts to provide financial safety nets against digital threats. Advanced technology, such as AI and IoT, plays a crucial role in risk management and customer experience. Company culture and purpose-driven decisions are essential for insurers to adapt to macroeconomic factors like inflation and economic volatility. InsurTech and parametric insurance offer protection against catastrophic events and inflation. Digital capabilities, including underwriting and claims management, are key to staying competitive. Employee benefits, long-term care, and embedded insurance are essential for workforce transformation. Diversity and ethical stewardship are vital for customer engagement and building client loyalty. Risk selection, automation, and advanced analytics help insurers manage risks and protection gaps. Core system modernization and technology adoption are necessary for insurers to remain competitive and provide superior customer service. Legacy systems and employee value proposition are areas of focus for insurers looking to improve financial health and stay ahead of the competition. Insurers must navigate the Insurance Protection Gap, using digital transformation and advanced technology to provide innovative solutions and meet evolving customer needs. Ethical stewardship, client-centric models, and Big Data analytics are essential for insurers looking to thrive in today's market. Blockchain, cloud computing, and AI are transforming the industry, offering new opportunities for insurers to streamline operations and enhance customer experience. 

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Market Challenges

• The digital insurance market faces significant challenges due to increasing data protection and privacy regulations. Regulations like GDPR and CCPA have a significant impact on regional markets, requiring insurers to adhere to complex compliance requirements. These include customer data management, consent mechanisms, data breach reporting, and lawful processing of personal information. Non-compliance can lead to severe penalties, reputational damage, and loss of customer trust. Regulations such as HIPAA for medical information and GLBA for financial data impose strict guidelines on handling sensitive information, adding complexity. Insurers must implement systems and processes to ensure compliance, which can be costly and resource-intensive for smaller insurers. The dynamic nature of regulatory frameworks necessitates continuous monitoring and adaptation, diverting resources from core business activities. These factors may negatively impact the growth of the global digital insurance market.
• In the Digital Insurance Market, insurers face numerous challenges as they navigate digital transformation. AI and automation are key areas of focus for underwriting and claims management, but legacy systems and technology adoption present hurdles. Employee benefits, financial health, and long-term care require digital capabilities and advanced analytics. Embedded insurance, workforce transformation, and diversity are essential for customer experience and employee value proposition. Core system modernization and digital channels are crucial for insurers to stay competitive, but economic volatility and the insurance protection gap demand ethical stewardship and client-centric models. IoT, Big Data analytics, and Blockchain offer opportunities, while cyber insurance and data security are top concerns. Risk selection, process streamlining, and outsourcing solutions help insurers adapt, while cloud computing, Microsoft Cloud, and EIS Group provide scalable, cost-effective alternatives. Technology investments, including AI, Catastrophe models, and Cyber insurance, require careful consideration to ensure customer loyalty and data security. Insurance ecosystems, healthcare IT, and private equity investment shape the future of the industry, with innovation in digital capabilities, customer engagement, and risk management driving growth.

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Segment Overview 

This digital insurance market report extensively covers market segmentation by

1. Distribution Channel
• 1.1 Direct sales
• 1.2 Brokers/agents
• 1.3 Affiliated partners
2. End-user 
• 2.1 Individuals
• 2.2 Businesses
3. Geography 
• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Direct sales- The digital insurance market has undergone a significant transformation with the rise of the direct-to-consumer (DTC) model. This business approach eliminates the need for intermediaries like brokers or third-party agents, resulting in cost savings for insurers. These savings are then passed on to consumers in the form of lower premiums, making insurance more affordable and accessible. The DTC model also offers personalized interactions between insurers and consumers, enabling tailored products and services based on individual customer needs and preferences. Transparency is another key advantage, as consumers have direct access to clear and straightforward information about policy terms, pricing, and the claims process. Technological integration is a cornerstone of the DTC model, with online platforms, mobile applications, and AI-driven tools streamlining processes and enhancing the customer experience. The DTC model's advantages have led to its increasing popularity, and the market is expected to continue growing due to technological advancements, cost efficiency, and increased consumer empowerment.

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Research Analysis

The Digital Insurance Market is a dynamic and evolving industry that is increasingly focused on providing financial safety nets against the growing threat of cybercrime. With transformation efforts underway, insurers are adopting a customer-centric business model, leveraging advanced technology such as AI and parametric insurance to enhance risk management and improve underwriting and claims management. Company culture is also a key factor, with a shift towards purpose-driven decisions and workforce transformation to meet the demands of a digital age. Macroeconomic factors, including inflation, also play a role, as do protection gaps and catastrophic events. InsurTech is driving innovation, with embedded insurance, employee benefits, and financial health solutions becoming more prevalent. Digital capabilities and core system modernization are essential for staying competitive, as is technology adoption and diversity in the workforce. Overall, the Digital Insurance Market is focused on providing innovative solutions to meet the evolving needs of customers and businesses in a rapidly changing world.

Market Research Overview

The Digital Insurance Market is experiencing a significant transformation, driven by advanced technology and a customer-centric business model. Cybercrime poses a major threat to the industry, necessitating innovative solutions like cyber insurance and parametric insurance. Digital capabilities, such as AI and big data analytics, are being adopted to improve risk management, underwriting, and claims management. Company culture and ethical stewardship are crucial in navigating macroeconomic factors like inflation and economic volatility. InsurTech is revolutionizing the industry with embedded insurance, IoT, and cloud-based solutions. Core system modernization and process streamlining are essential for digitalization and customer engagement. Workforce transformation, diversity, and employee value proposition are key to attracting and retaining talent. Risk selection, automation, and advanced analytics are essential for managing protection gaps and catastrophic events. Purpose-driven decisions, client-centric models, and ethical stewardship are shaping the future of the industry. Legacy systems and data security are being addressed through outsourcing solutions and technological adoption. The insurance ecosystem is evolving, with private equity investment, Microsoft Cloud, EIS Group, and other players driving innovation. Digital channels and healthcare IT are expanding access to insurance, increasing insurance penetration. The future of the industry lies in its ability to adapt to changing customer needs and technological advancements.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Distribution Channel
• Direct Sales
• Brokers/agents
• Affiliated Partners
• End-user
• Individuals
• Businesses
• Geography
• North America
• Europe
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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