Insurtech Platform Premiums to Exceed $556 Billion Globally in 2025, as AI Drives Market Transformation
- Published in iPMI Magazine Information Technology News
A new study by Juniper Research has found that the total value of premiums generated by insurtech platforms – platforms with technology supporting insurance at the heart of their design – will exceed $556 billion in 2025, from $250 billion in 2020; growing by 123%. It predicts that insurers in the motor, life, home and health industries risk becoming less attractive to potential customers if they fail to capitalise on the benefits that AI underwriting systems bring.
The report identified that weakened customer loyalty, and the driving down of premiums by increased competition and the shift to digital will cause seismic change in insurance over the next five years. It recommends that large insurers focus on using insurtech solutions to improve customer interactions by creating data-driven models, or lose market share to newer, digitally-native vendors.
For more insights, download the free whitepaper: Insurtech: The New Insurance Model Whitepaper Download
Largest Insurers Ranked on Insurtech Readiness
The new research, Insurtech: Segment Analysis, Market Evolution & Forecasts 2021-2025 Market Research, ranked 20 of the largest traditional insurance providers on insurtech innovation, investment and adoption. The top 5 leading vendors were found to be:
- Ping An
- Munich Re
These vendors have developed strategies for leveraging insurtech for their business models and to digitally transform; providing examples of how traditional insurers should capitalise on insurtech. Ping An is set to invest $1 billion per year in insurtech, demonstrating commitment to the approach.
Health Insurance Premiums Underwritten by Insurtech to Accelerate
The research found that insurtech will affect health insurance strongly, with the value of premiums underwritten by insurtech growing by over 1,000% between 2020 and 2025; exceeding $95 billion globally in 2025. The research identified the ability to collect and use customer data through wearables, API calls to electronic health records and digital therapeutics as critical to driving digital transformation. The research recommends that health insurers redesign their user experience to be digital first, to increase user engagement and loyalty.
Whitepaper Download: https://www.juniperresearch.com/document-library/white-papers/insurtech-the-new-insurance-model
Insurtech market research: https://www.juniperresearch.com/researchstore/fintech-payments/insurtech-research-report