The insurtech industry is experiencing an unprecedented boom. With a projected market value of $39.44 billion by 2027, emerging technologies like AI and machine learning are reshaping the landscape of insurance.
Our Perspective:
We believe the insurtech movement is a revolutionary step towards a more efficient, customer-centric insurance paradigm. “By integrating advanced technologies such as hyper-automation, we see a future where insurance is not only more accessible but also more aligned with individual needs,” says Satpreet Singh, one of the managing partners at Pinnacle. They emphasize that the agility of insurtech companies to adopt digital ecosystems is key to delivering innovative and consumer-friendly solutions that promise a seamless experience from onboarding to claim processing.
Pinnacle Digital Advisors
The insurtech market’s remarkable growth, from $10.44 billion in 2022 to a forecasted $13.49 billion in 2023, is a testament to the efficiency and cost-effectiveness of these modern solutions. Traditional insurance models are being upended by insurtech’s elimination of intermediaries, favoring direct engagement through digital platforms. This shift is largely driven by consumer demand for quick, secure, and personalized services, with studies showing a massive 96% of insurers ready to embrace digital ecosystems.
Hyper-automation, a blend of AI, ML, and RPA, is at the forefront of this transformation, enabling insurtech professionals to conduct business with unprecedented speed and efficiency. According to research, over 65% of insurtech companies will implement some form of hyper-automation by 2024, indicating the rapid evolution of the sector.
Notable market activities, such as MGA CorvusInsurTech’s acquisition of Wingman Insurance, highlight the strategic expansion efforts within the industry, particularly in catering to the small and midsize business sector.
Geographically, North America leads the insurtech service market, with Asia-Pacific poised for significant growth. The comprehensive report covers a global scope, delving into regional dynamics and technological advancements that are propelling the industry forward.
The insurtech sector’s trajectory is clear: it’s paving the way for a future where insurance is not just a service, but a highly personalized and instantaneous solution.