Insurtech is disrupting the traditional insurance market, paving the way for digital to take over in the sector.
According to Juniper Research, the global insurtech platform premium will reach US $556 billion by 2025, which is a 123% spike within the period of 2020-2025. Further, the report predicts a more than 1000% increase in health insurance premium revenue underwritten by insurtech during the same period.
The global insurtech platform premium will reach US $556 billion by 2025, which is a 123% spike within the period of 2020-2025… more than 1000% increase in health insurance premium revenue underwritten by insurtech
In fact, the report states that 18.4% of all digital premiums to be generated will be by insurtech platforms.
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Currently, North America is leading the path in insurtech, accounting for 50% of the entire global insurtech market. Smaller but considerable chunks are with Western Europe, and China and other far eastern countries.
Although India holds a much smaller slice of the pie, its visibility is increasing on the global insurtech map. Synergy Strategic Solutions, a provider of insurtech solutions in the APAC region, and iNube Software Solutions®, a provider of digital insurance solutions, have recently announced plans to enter into a strategic partnership to expand their current offering for the insurance sector from end-to-end consulting and solutions, with niche digital products and micro platforms that enable e-insurance.
One of the advantages of technology entering the insurance sector is removal of the middleman that remains in traditional insurance. Consumers are welcoming this omission, especially across four segments that include, motor, home, life and health insurances.
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Pradeep Satya, CEO and Founder of Synergy Strategic, told The Tech Panda that Indian insurers have started to wake up to the potential that digitization brings.
“Digitalization presents a growing opportunity for insurers to improve market share and profitability,” he says.
He says that tech savvy insurers are reshaping their product distributions and operations models, powered by cloud computing, data and predictive analytics, Robotic Process Automation (RPA) and AI/ML.
