The global insurtech market is set to experience a significant surge, reaching a staggering $158.99 billion by the year 2030. This growth is forecasted to occur at a compound annual growth rate (CAGR) of 32.7%, up from $9.41 billion in 2020.
Factors driving this expansion include the increased digitalization of business models, the saturation of the insurance industry, and the proliferation of internet technologies. However, challenges such as privacy concerns and regulatory changes may pose obstacles to market growth. On the flip side, opportunities are emerging from the rapid adoption of new technologies and the untapped potential of emerging economies.
In terms of offerings, services are expected to see the highest CAGR of 33.6% through 2028. This segment plays a vital role in meeting customer demand effectively. Conversely, the solution segment currently holds the largest market share, with insurance companies implementing advanced technology solutions to enhance their operations.
Deployment-wise, on-premise solutions dominate the market, providing full control over infrastructure. However, cloud-based solutions are projected to witness the highest CAGR of 34.5% due to reduced infrastructure costs and increased investment in cloud technology.
Regionally, North America leads the market, with partnerships between insurtech companies and traditional insurers driving growth. Asia-Pacific is anticipated to exhibit the highest CAGR of 36.7%, as the region invests in insurtech to enhance business efficiency and streamline claim settlement processes.
Key players in the market include Damco Group, Majesco, DXC Technology Company, OutSystems, Oscar Insurance, and others, who are at the forefront of driving innovation and growth in the insurtech sector.
These developments highlight the immense opportunities and challenges present in the insurtech market, as companies strive to leverage technology to transform the insurance industry and meet the evolving needs of customers worldwide.
