Based on technology, the AI (artificial intelligence) and MC (machine learning) sub-segment is expected to be the most profitable. Regionally, Asia-Pacific is expected to have the highest growth opportunities. However, security concerns and government regulations may impede market growth during the review period.

The study analysts forecast the insurtech market to witness significant growth during the forecast timeframe due to increasing innovations in digital solutions across insurance companies to expand their operations and establish product lines based on niche customer demand.

Moreover, increasing adoption of insurtech due to the need for specialized and customized insurance is expected to create ample growth opportunities for the market during the analysis period.

Insurtech Market Segments

The report has divided the market into segments based on technology, product, distribution channel, and region.

Technology: AI and machine learning sub-segment to be profitable.

The AI and machine learning subsegment is expected to generate $26,481.8 million during the estimated period. This is primarily because AI enables insurers to create personalized experiences based on people's preferences and behaviors. Moreover, increasing implementation of machine learning to automate claims processing is expected to fuel the growth of the market sub-segment during the forecast period.

Products: P&C will be the most productive

P&C is expected to earn revenue of $32,859.4 million during the forecast period and rising risks from climate change, intangible assets, pandemics, and cybercrime are expected to bolster the growth of this business in the insurtech market during the analysis period.

Distribution channel: the Brokerage channel will benefit the most

The broker sub-segment is expected to generate revenues of US$24,737.1 million during the forecast period. This is mainly due to growing demand for products such as home, health, auto and other insurance products.

In addition, increasing consumer awareness about insurance policies and growing importance of education about insurance policies and their multiple benefits are expected to drive the growth of this market segment during the estimated period.

Regions: Asia-Pacific will have ample growth opportunities

This region is estimated to grow at a CAGR of 30.2% during the forecast period. This is mainly due to the existence of multiple emerging economies and financial centers in this area. Moreover, insurance companies in this region are expected to turn to digital insurance platforms owing to the increasing use of cloud technologies and rise in internet users, which will drive regional market growth during the review period.

Translated by: A.M