The pandemic has set in motion a colossal and unparalleled digital movement, wherein insurance providers are either simply beefing up their transition to the digital medium; or exploring innovative technologies and/or collaborating with existing technology partners or Insurtech start-ups for the development of new tools and models; or are even exploring unconventional routes to outsource solutions in order to bring agility to their operations. There are also others who are working towards improving their business by introducing proof of concepts and quick minimum viable products for speedy generation of solutions. Insurance providers have been particularly responsive to the situation by digitizing the two main worrisome areas, their contact centers and claims functions, which have been at the receiving end since the pandemic outbreak. In addition to automating and streamlining processes, particularly involving intelligent underwriting; insurance providers have been improving their use of external data, and unstructured and structured data; and studying ways to use knowledge graphs that enables them to identify correlated data trends.
Even as insurance providers trek the digital roadmap to bring their businesses in line with the current market trends to make them profitable, they are likely to face challenges owing to lack of insight about the future operational scenario, and may even face difficulty taking quick technology decisions that would impact their future operating models. However, with no choice but to adopt digitalization, insurance providers need to work out on achieving balance between the need to invest in digital technology and their cost concerns to attract customers who are no longer sticking to traditional experiences. Amid the COVID-19 crisis, the global market for Digital Insurance Platform estimated at US$102.2 Billion in the year 2020, is projected to reach a revised size of US$169.2 Billion by 2026, growing at a CAGR of 9% over the analysis period. Services, one of the segments analyzed in the report, is projected to grow at a 9.3% CAGR to reach US$132.7 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Tools segment is readjusted to a revised 8.1% CAGR for the next 7-year period. This segment currently accounts for a 30.4% share of the global Digital Insurance Platform market.
The U.S. Market is Estimated at $34.3 Billion in 2021, While China is Forecast to Reach $21 Billion by 2026
The Digital Insurance Platform market in the U.S. is estimated at US$34.3 Billion in the year 2021. The country currently accounts for a 31.68% share in the global market. China, the world second largest economy, is forecast to reach an estimated market size of US$21 Billion in the year 2026 trailing a CAGR of 11.4% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 7.5% and 7.7% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 8.5% CAGR while Rest of European market (as defined in the study) will reach US$23.6 Billion by the close of the analysis period.
The market is anticipated to gather a notable momentum owing to increasing digitization, rising uptake of the Internet of Things technology, and transition of insurance companies from product-based towards consumer-centric strategies. Insurance firms serving different industrial verticals are increasingly investing in digital solutions to deliver an enhanced customer experience while streamlining business operations. Digital insurance options help companies in leveraging business analytics to make informed decisions as well as improve customer engagement. Ongoing digital transformation within the insurance sector is anticipated to boost global uptake of digital insurance platforms. These platforms help insurance companies in connecting through a single centralized framework to address different issues. The platform enables insurance players to migrate from traditional processes towards the digital mode to make the insurance ecosystem customer-centric and upgrade operations and services using inbuilt functionalities.
The market is also gaining from evolving customer expectations and the need for attractive, simple products offering an omni-channel experience. The ongoing digital disruption is prompting insurance companies to embrace digital platforms and the cloud for delivering enhanced services. Changing customer requirements and the need for technology-integrated solutions are expected to drive the demand for digital insurance platforms in the coming years. Insurance players managing different agencies and agents are leveraging digital platforms to reduce the cost associated with insurance processes. These options are enabling companies to efficiently manage the digital insurance ecosystem, add new sale channels as well as improving accessibility, control and monitoring of insurance policies. While low penetration of sophisticated technology within the insurance industry, mainly across emerging economies, remains a key restraint, increasing digitization in developing economies like Brazil, India, China and South Africa is expected to present new growth opportunities. The digital insurance platform market is anticipated to gain further from increasing focus of Gen Z on digital technologies and increasing adoption of cloud-based solutions among insurance players to achieve scalability.
By Application, Automotive & Transportation Segment to Reach $42.9 Billion by 2026
Global market for Automotive & Transportation (Application) segment is estimated at US$23.7 Billion in 2020, and is projected to reach US$42.9 Billion by 2026 reflecting a compounded annual growth rate of 10.7% over the analysis period. The United States constitutes the largest regional market for Automotive & Transportation segment, accounting for 31.9% of the global sales in 2020. Middle East is poised to register the fastest compounded annual growth rate of 13.5% over the analysis period, to reach US$2.8 Billion by the end of the analysis period.
Select Competitors (Total 125 Featured)
Accenture PLC
Appian Corporation
Bolt Solutions
Cogitate Technology Solutions, LLC.
Cognizant Technology Solutions Corporation
Duck Creek Technologies LLC
DXC Technology Company
eBaoTech Corporation
EIS Group Software Limited
FINEOS Corporation UC
IBM Corporation
Infosys Ltd.
Internet Pipeline, Inc.
Inzura Ltd.
Majesco Inc.
Microsoft Corporation
MindTree Ltd.
Oracle Corporation
Pegasystems, Inc.
Prima Solutions SA
RGI S.P.A.
SAP SE
StoneRiver Insurance Solutions
Tata Consultancy Services Limited
Vertafore, Inc.