Global InsurTech market size will grow at a CAGR of more than 41%. However, the growth momentum of the market is expected to decelerate due to a decline in the year-over-year growth. It has become challenging to manage, monitor, and maintain the data in an organization owing to the increasing number of devices. Digitization for machine-to-machine (M2M) communications is expected to increase as it helps an insurance service provider to simplify the management, monitoring, and maintenance of connected devices. Enterprises also experience significant improvements in business processes with the adoption of fully digital procedures.
InsurTech companies need to analyze vast amounts of data that will help them in segmenting customer populations, identifying opportunities for new products and services, and optimizing pricing mechanisms. Use of Big Data can improve investment decision and help insurance companies to arrive at a comprehensive credit scoring mechanism. Analytics can identify hidden patterns in data by using complex models and use it to predict future outcomes or forecast growth. Al will prove to be beneficial for InsurTech firms. For instance, robotics can be used to automate many processes in InsurTech solutions.
“A major part of the market’s growth is expected to originate from Europe. This is because data has become a strategic asset across Europe and the adoption rate of technology in this region is higher when compared with other geographies. Thus, InsurTech such as data analytics could be used in deriving insights at every stage of the insurance life cycle such as customer targeting, pricing, product designing, claims processing, and reporting to create customized insurance products for consumers in Europe”, says an analyst at Technavio.
InsurTech provides on-demand accessibility for real-time data synthesizing. It allows enterprises to transform, monitor, and deliver data; understand business processes; and bridge the gap between businesses and IT. With an increase in the number of companies that are turning global, customers, suppliers, and other concerned people globally need to be connected through real-time information. Hence, companies require integration platforms to link multiple enterprise systems with web and wireless applications.