GITNUX MARKETDATA REPORT 2024

Must-Know Insurtech Industry Statistics [Current Data]

Highlights: The Most Important Insurtech Industry Statistics

  • The annual venture capital funding in InsurTech increased from $348m in 2012 to over $6.37bn in 2019.
  • The compound annual growth rate (CAGR) of the Insurtech market is projected to be around 43.9% from 2021 to 2030.
  • Artificial intelligence and internet of things startups took up nearly 40% of all insurtech funding in 2019.
  • Over 336 new insurtech startups were founded globally in 2020.
  • By 2022, 86.5% of insurers are expected to partner with insurtech companies in some manner.
  • 48% of insurers believe that their relationship with insurtechs will be essential to their business strategy.
  • North America garnered the highest share in 2020, with over 40% of the global insurtech market.
  • 31% of insurance companies are collaborating with insurtech firms or startups globally.
  • Asia-Pacific is projected to show the highest growth, with a CAGR of 44.4% by 2030 in the Insurtech industry.
  • The use of mobile technologies in the insurtech industry is expected to grow by 58% by 2025.
  • More than 54% of insurtechs globally are focusing on developing solutions for the property/casualty insurance space.
  • The use of Blockchain in Insurtech is expected to grow at a CAGR of 84.9% during the period of 2018–2024.
  • 60% of Insuretech start-ups are aimed at enhancing customer relationships.

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Navigating the rapidly evolving landscape of the insurtech industry can seem overwhelming without the aid of solid statistics to guide your understanding. In this blog post, we venture into the fascinating world of insurtech, arming you with the latest industry statistics that offer revealing insights. Whether you’re an entrepreneur seeking to penetrate the market, a seasoned professional aiming to stay ahead of the curve, or simply an enthusiast curious about insurtech’s impressive growth, these statistics serve as a comprehensive guide to the transformative impact that technology continues to have on the insurance industry. So buckle up and prepare to dive deep into a sea of numbers, trends, and forecasts that epitomize the dynamic insurtech sector.

The Latest Insurtech Industry Statistics Unveiled

The annual venture capital funding in InsurTech increased from $348m in 2012 to over $6.37bn in 2019.

Unveiling the remarkable trajectory of Insurtech’s venture capital funding, it’s plain to see that the industry has ascended from a modest $348 million in 2012 to a staggering $6.37 billion in 2019. This exponential growth, now more than ever, attests to the metamorphosis of Insurtech as it catapults itself into the limelight as an industry leader. The numbers furnish us with compelling proof, illustrating a dramatic influx of investment, which portrays an undeniable vote of confidence in the potential and profitability of the Insurtech industry. Conversely, this surge in funding underscores the growing appetite of investors to capitalize on the seismic evolution of Insurtech, a cogent signifier of the sector’s increasing vibrancy and value. This remarkable financial leap shines a new light in this blog post, underscoring the titanic shift in the Insurtech landscape and its role as a booming financial juggernaut.

The compound annual growth rate (CAGR) of the Insurtech market is projected to be around 43.9% from 2021 to 2030.

Peering into the future, the projection of a 43.9% Compound Annual Growth Rate (CAGR) for the Insurtech market from 2021 to 2030 brings along waves of opportunities and evolution. This dramatic growth projection serves as the pulsating heartbeat of the Insurtech industry, powering the adoption of digital innovation and reinforcing the industry’s potential. For anyone keen on the vibrant intersection of insurance and technology, this statistic stands as a beacon, illuminating the epoch of unprecedented expansion for the Insurtech world.

Whether you’re an active player in the industry, an enthusiastic investor, or just an observer, the sheer magnitude of this CAGR projection casts a spotlight on both the entrepreneurial spirit and the investor’s appetite for this technology-based sector. Creating an anticipation similar to the glistening horizon at dawn, this statistic paints the picture of a robust, booming future for anyone willing to dive into the pool of Insurtech.

Put simply, the 43.9% CAGR is like a siren’s call in the fable of the Insurtech industry, luring interested minds deeper into a sea of potential growth, innovation, and profit. And the hidden jewel of this sparkling forecast is the promise that the captivating story of Insurtech is just beginning to unfold.

Artificial intelligence and internet of things startups took up nearly 40% of all insurtech funding in 2019.

Shining a spotlight on this intriguing statistical finding, we uncover a significant inclination of insurtech funding gravitating towards artificial intelligence and Internet of Things startups. Accounting for nearly 40% of the total funding in 2019, this figure sheds light on the technological preferences shaping the insurtech industry. This trend not only underscores the emphasis on innovative technology in enhancing the insurance landscape but also acts as a harbinger for where future advancements and investments might be directed. When dissected, these key advancements could potentially steer the course of the insurance sector, making this a cornerstone statistic in our understanding of the insurtech ecosystem.

Over 336 new insurtech startups were founded globally in 2020.

Painting a vivid picture of the dynamism and innovation in the insurtech industry, the statistic reflects a surge in entrepreneurial activity globally in 2020 with over 336 new insurtech startups sprouting up. This data point hints at the enchanting allure of the insurtech sector for entrepreneurs and underscores a driving trend of disruption and technology-driven transformation reshaping the traditional insurance industry. It undoubtedly signals that the insurtech industry is a hotbed of innovation, capturing global entrepreneurial attention and implying significant opportunities for growth, investment, and new developments. This heightened momentum in insurtech startup creation could act as a catalyst for widespread change, foreshadowing an even more technology-integrated, customer-centric, and dynamic insurance landscape in the near future.

By 2022, 86.5% of insurers are expected to partner with insurtech companies in some manner.

Waltzing into the limelight, the statistic stands, proclaiming a striking transformation within the insurance industry: By 2022, 86.5% of insurers are projected to form alliances with insurtech companies. This narrative, unveiling an evolving industry-wide dance between tradition and innovation, highlights the magnitude of the shift.

Peeking behind the curtain, this anticipated merger of insurers and insurtech companies unveils the industry’s recognition of the increasing importance of technology in insurance – it’s the difference between the performances of the past and the symphonies of the future. This dance partner – technology – is stepping up to redefine insurance, making it swift, flexible and personalized.

With 86.5% of insurers poised to embrace insurtech, it is abundantly clear that the rhythm of the industry is being reset. This statistic, then, serves not just as a marker of inevitable change, but as a testament to the new choreography being etched into the steps of the insurance landscape.

And as the spotlight pivots, the millions of consumers watching this performance find their attention drawn to the statistic, anticipating the improvements and innovations that this much-anticipated partnership will bring. There, within this dance of statistics and transformation, you find why this number – 86.5% – is not just a value, it is a signal of the insurtech revolution about to sweep the industry. Technology is no longer an outsider peering in, but a core player in the dance of insurance, dramatically changing the way insurers engage, adapt, and move.

48% of insurers believe that their relationship with insurtechs will be essential to their business strategy.

“Imagine sailing in a sea of uncertainties where navigation relies heavily on the compass of collaborative success. This is precisely what the statistic – ‘48% of insurers believe that their relationship with insurtechs will be essential to their business strategy’ – paints for us. It is a loud and clear testament to the growing recognition within the insurance industry of the invaluable role that insurtechs play. Couple this with the pace and disruption that technology brings, and it’s evident that these alliances aren’t just an addition to their strategy, but an integral, essential component. It is akin to the oxygen that fuels the flame of innovation and business growth in the insurtech industry. So, in a sense, this statistic is a sneak peek into an undeniable, industry-shaping relationship that pivots on the axis of technological evolution. It underscores the ever-deepening entwining of insurers and insurtechs, pushing the boundaries of what’s possible in insurance.”

North America garnered the highest share in 2020, with over 40% of the global insurtech market.

Diving into the captivating realm of Insurtech Industry Statistics, one figure leaps from the page like an attention-hungry Jack-in-the-box – North America’s king-sized piece of the market pie, gorging on over 40% in 2020. This gripping number is far from just an idle scribble on a ledger sheet, it’s a compelling testament to North America’s commanding position in the global insurtech scene.

Like a powerful lighthouse piercing the fog, this statistic significantly illuminates North America’s leading role and strategic vantage point within this burgeoning industry. It underscores the region’s potent combination of innovative prowess, competitive edge, and market demand.

Moreover, it sets the stage for predictive game plans. For those navigating the choppy waters of the insurtech sector, this revelation about North America’s colossal market share forms a crucial compass direction – perhaps informing geo-strategic decisions, investment considerations, and business development directions for the future.

In essence, this commanding statistic is a wake-up call, a rallying cry if you will, urging stakeholders to harness the insurtech wave coursing through North America – a region clearly marked as a vital centerpiece to market growth and innovative enlargement of the insurtech empire.

31% of insurance companies are collaborating with insurtech firms or startups globally.

Shining a spotlight on the statistic of ‘31% of insurance companies collaborating with insurtech firms or startups globally’, one can unravel a trend stirring within the insurtech industry’s core. This number signifies a shift in the traditional operations of insurance companies, indicative of a growing symbiosis with insurtech firms or startups. In the grand theatre of the insurtech domain, these collaborations offer a peek into the future – a time where tech-driven solutions are blended seamlessly into an industry typically characterized by old-school approaches. This is more of a revelation of an unfolding revolution, a driving force behind the curtain for the blog post about Insurtech Industry Statistics. Such joint ventures not only expand the reach of the established players but also secure a footing for the modern, sprouting firms amidst the competitive arena. This percent reminds us of the evolving dynamics of the insurtech industry and provides a measure of the trend towards collaboration and innovation.

Asia-Pacific is projected to show the highest growth, with a CAGR of 44.4% by 2030 in the Insurtech industry.

Diving deep into the realms of Insurtech Industry statistics, it’s essential to shed light on the burgeoning growth of the Asia-Pacific region. Projecting a phenomenal CAGR of 44.4% by 2030, this region stands as a de facto torchbearer of evolution in this industry. This robust projection personifies an exciting shift in economic might, illustrating the dynamic nature of the Insurtech industry. The very essence of this data catapults Asia-Pacific into the spotlight of potential investors and startups in the Insurtech space, marking it as a region brewing with opportunities. Moreover, this significant surge emphasizes the palpable acceptance of technology in insurance services within developing economies, heralding a new era where Insurtech isn’t just thriving; it’s leading the way.

The use of mobile technologies in the insurtech industry is expected to grow by 58% by 2025.

Featuring this statistic in a blog about Insurtech Industry Statistics brightens the spotlight on an escalating digital transformation within the industry. The projection of 58% growth signifies a changing landscape where mobile applications play a pivotal role, reflecting the insurtech industry’s responsiveness to technology adoption. This allows stakeholders in the industry – from entrepreneurs to investors, to see the larger trend, helping them strategize and make informed decisions. Furthermore, it underscores the relevance of mobile technologies in advancing customer engagement, service efficiency, and disrupting the traditional insurance models. It could also ignite a proactive approach in developing or penetrating mobile-related insurtech solutions. Hence, this figure serves not only as an indicator of future technological developments but additionally, as a powerful driver to inspire innovation in the insurtech space.

More than 54% of insurtechs globally are focusing on developing solutions for the property/casualty insurance space.

Peeling the layers of this impactful statistic uncovers a strong pivot toward the property/casualty insurance sector by more than half of global insurtechs. This is a noteworthy indicator of a significant trend within the insurtech industry. Huge productive efforts are being funneled into crafting solutions for this specific insurance field. This reveals a valuable hint about the market demand and the abundance of opportunities emerging from the property/casualty insurance segment. In a broader perspective, when analyzing the insurtech industry, it adds a crucial piece to the puzzle of understanding where insurtech companies are perceiving the most potential for growth and advancement.

The use of Blockchain in Insurtech is expected to grow at a CAGR of 84.9% during the period of 2018–2024.

Highlighting an anticipated CAGR of 84.9% in the use of Blockchain within the Insurtech industry from 2018 to 2024 is no small feat. It’s a clear signpost illuminating the future of this industry, signalling a groundbreaking trend. As the promise of Blockchain technology in insurance disrupts traditional models and methods, it promises to overhaul how the sector operates, opening up possibilities for increased efficiency, transparency, and cost savings. Intertwining this hard-hitting statistic in a blog post about Insurtech Industry Statistics, it will help paint a picture of a future where digital advances are not merely alternatives, but necessary adaptions to remain competitive. It’s equivalent to providing the gold nugget of data that emphasizes the pace of evolution and innovation in the Insurtech industry.

60% of Insuretech start-ups are aimed at enhancing customer relationships.

Diving headfirst into the heart of Insurtech industry statistics reveals an eye-catching fact. Remarkably, six out of every ten Insurtech start-ups are setting sail with designs set firmly on boosting customer relations. This influential figure underscores the crucial direction where the majority of these savvy start-ups are plunging their innovative energies. It demonstrates that, within this bustling industry, the customer relationship is being elevated to a top pedestal. The industry is, in essence, becoming more tailored, more personal, more keenly attuned to the expectations and requirements of the customers. Through this statistic, we can hear the Insurtech market heartbeat, loud and clear. It beats to the rhythm of customer-centric innovation. It’s a bold and persuasive nod to the direction the wind is blowing in the Insurtech landscape.

Conclusion

In sum, the insurtech industry, deeply rooted in digital innovation and customer-centric offerings, is thriving and rapidly evolving. The statistics clearly highlight the substantial growth and potential of the industry. Customers, businesses, investors and even traditional insurers are showing increasing acceptance towards insurtech, indicating its essential role in the future of insurance. As technology advances and customer expectations change, the insurtech industry’s role will only become more crucial. Keeping an eye on these key industry statistics can provide valuable insights for strategizing and making informed decisions. Thus, the road ahead for the insurtech industry is filled with promise and disruption, shaping the new face of insurance globally.

References

0. – https://www.www.insurtechdigital.com

1. – https://www.www.the-digital-insurer.com

2. – https://www.coverager.com

3. – https://www.www.infoholicresearch.com

4. – https://www.www.reinsurancene.ws

5. – https://www.www.nicklins.co.uk

6. – https://www.www.precedenceresearch.com

7. – https://www.www.ey.com

8. – https://www.www.willis.com

9. – https://www.www.alliedmarketresearch.com

10. – https://www.blog.dataart.com

11. – https://www.www.fintechmagazine.com

FAQs

What is the Insurtech Industry?

The Insurtech industry, a combination of the words 'insurance' and 'technology', refers to the innovative use of technology to optimize and simplify the insurance industry. It includes everything from mobile apps for claiming insurance to AI chatbots and algorithms for risk assessment and pricing.

How is Insurtech transforming the insurance Industry?

Insurtech is drastically transforming the insurance industry in various ways such as improving risk assessment with AI and machine learning, enhancing customer services with the use of chatbots, easing claims processing with digital interfaces, and offering customizable and flexible insurance policies based on individual needs.

What are some significant challenges in the Insurtech Industry?

Some significant challenges in the Insurtech Industry include regulatory and legal hurdles, the need for large volumes of data for efficient AI and machine learning, system compatibility issues, and convincing traditional insurance customers to adapt to new, digital ways of purchasing and managing their policies.

What is the future outlook for the Insurtech Industry?

Experts believe that Insurtech will keep gaining traction in the future. The expectation is for increased integration of technologies such as AI, blockchain, machine learning, and IoT into insurance processes, potentially leading to entirely new business models and ways of delivery for insurance services.

Can you give some examples of companies in the Insurtech Industry?

Notable examples of companies in the Insurtech industry include Lemonade, an AI-powered home insurance provider; Clover Health, providing health insurance using data analysis and preventive health measures; and Metromile, offering pay-per-mile car insurance for low-mileage drivers, among many others.

How we write our statistic reports:

We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly.

See our Editorial Process.

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