GLOBAL INSURTECH MARKET

KEY FINDINGS

• Covid19 accelerated the demand for insurTech and it can be said that in the coming years insurance industry will heavily rely on technology.
• New entrants in the market are giving rough competition to the traditional insurance sector. But many traditional companies are also partnering with the Fintechs and creating a win-win situation.
• Heavyweight companies such as Amazon is also planning to enter into the car insurance market.
• North America is expected to hold largest share in this market as the adoption rate is increasing.
• The key players of this market are Lemonade, Shift Technology, Quantemplate Limited, ZhongAn Online P&C Insurance Co. Ltd, Acko.

INTRODUCTION

Inspired by Fintech, Insurtech Market is a combination of insurance and technology in the insurance industry to bring more efficiency and innovation. This market is exploring the areas beyond the traditional insurance market, such as offering ultra-customised policies, social insurance and using data from the internet-enabled devices to price premiums.

The companies in this market heavily invest in the technology such as Artificial Intelligence and Big Data that helps to optimize pricing mechanisms and enhance insurance-related services. These companies are providing the services with the help of online and mobile application platforms to users.

INSURTECHMARKET DYNAMICS

COVID-19 has impacted the insurance industry, especially in Asia Pacific and Middle East & Africa, and thus the market share of that region has sparked the insurance industry, to capture that market insurance companies are adopting new business strategies in payment methods and services which create revenue opportunities during lockdown situations.

The demand of Insurtech Market has increased and the figures of the forecasted period is also tending to increase in the pandemic.

It is estimated that North America will hold largest share in this market as the adoption rate of insurance technology solutions are increasing in the region.

Moreover, in the Asia Pacific the expansion rate of Insurtech Market is expected to grow fast, as the adoption rate of technologically advanced software platforms are increasing which will help to manage payment operational risk, foreign exchange risk and market risk in the region.

As digital continues to be new normal, one of the most pronounced trends is the normalization of no-code/low code development in enterprise IT. With no-code tools, Insurers can deliver better apps quicker, improve customer experience, and improve service quality.

Hybrid cloud is also getting attention. The architecture improves both speed and flexibility by allowing organizations to go back and forth between their own tools and the cloud providers’ toolkits. ‘Hybrid cloud architectures improve both speed and flexibility by allowing organizations to go back and forth between their own tools and the cloud providers’ toolkits.’

Amazon is planning to enter the market for car insurance, and new digital experiences are being introduced to the market by digital-first insurers like Lemonade. Incumbent insurers are having a rough time coping with these new entrants.

Partnerships between InsurTechs and incumbents are a growing trend, and for a good reason – it is often a win-win proposition.

INSURTECHMARKET SIZE AND FORECAST

Global insurtech market size is expected to grow due to many key factors such as simplification of the claims process, improved communication with the clients and implementation of automation capabilities.

Health insurance is expected to have the highest growth rate as compared to other insurance sectors such as motor, property and casualty, and others. Reason being, the pandemic and the health risk has increased in the human beings.

According to a recent survey by Bloomberquint, the number of workers who say they won’t go back to the office full time has increased significantly, with over a quarter of those surveyed planning to continue working remotely at least half the time after the pandemic is over. For insurers, this means that they need to support their employees to complete their tasks remotely.

INSURTECHMARKETCOMPETITIVE ANALYSIS

Quantemplate Limited.: It is a U.S. based insurance technology company. They provide product and services to insurance companies like data integration, machine learning and analytics solutions. The company is operational at North America and Europe, and they enable access of information at a global level with the help of cloud solutions to users.

Financials

Funding stage – Series B

Total Funding Amount – $25.6 Million

Type – Private Company

ZhongAn Online P&C Insurance Co. Ltd. : It is a Chinese online insurance company and provide services in consumer finance, auto, health, travel and lifestyles sectors. The company has other subsidiaries such as ZhongAn International and ZhongAn Information and Technology Services and Co. The company was listed in Hong Kong Stock Exchange in September 2017 and raised $1.5 Billion, which made the first company in the Insurtech to have an IPO.

Financials

Net Profit (HY 2020) – 490.5 Million yuan

Revenue (2019) – 6.7 Billion yuan

Market Cap – $60.41 Billion

PolicyBazaar.com: It is an Indian company and provide a platform to offer insurance products. They have several insurance plans such as life insurance, health insurance, motor insurance, travel insurance and group insurance. They also provide the comparision between buying insurance plans as per the individual preference and convenience. In 2019, Tencent Holdings Ltd., had acquired 10% minority stake in PolicyBazaar.com, valuing at $1.5 Billion

Financials

Funding stage – Later Stage VC

Total Valuation – $1.5 Billion

Type – Private Company

Acko: Started in 2016 as India's first digital insurer, and are currently the fastest growing general insurance company in the country. They have over 50 million customers. Partnered with big companies such as OLA, OYO, Amazon etc, they have launched innovative products like trip insurance, electronics cover and hotel-stay insurance.

Financials

Funding stage – Later Stage VC

Total Valuation – $500mn

Type – Private Company

Lemonade: It is based in New York City, USA and provides insurance for homeowners and landlords powered by artificial intelligence and behavioural economics. With the Protect API platform from Bestow, Lemonade recently launched life insurance offering. On July 1, 2020, Lemonade Inc. priced 11 million shares at $29.00 per share on the NYSE. Shares began trading on July 2, 2020 and became 2020’s best IPO debut after the mobile-based insurance startup’s stock closed up 139% to finish at $69.41 on the NYSE.

Financials

Gross Profit (FY 2019) – $11.9

Revenue (2019) – $67.3m

Market Cap – $7.32B

Shift Technology: Headquartered in Paris, France, Shift Technology provides Software-as-a-Service (SaaS) that uses data science to detect networks of fraudsters in insurance.

Funding stage – Series C

Total Funding Amount – $100 Million

Type – Private Company

INSURTECHMARKETCONCLUSION

Insurtech market is an emerging market of the insurance industry. The rise of technology such as AI, Big Data, Analytics, etc has inspired Insurtech market. Many analysts believe that it will be the next big disruption after Fintech. COVID-19 has increased the health risk in the human beings and opened new market opportunities for insurance companies.

some existing players are using technology like mobile apps and customized insurance products through online to reach their customers. The growth of this market is high in the forecasted period and the key factors are increased health risk, increasing online services, demand of customised products, appealing automation process, etc.

INSURTECHMARKETCOMPANIES PROFILED

• Quantemplate Limited
• ZhongAn Online P&C Insurance Co. Ltd
• PolicyBazaar.com
• Acko
• Lemonade Inc,
• Shift Technology

THISINSURTECHMARKETREPORT WILL ANSWER FOLLOWING QUESTIONS

1. Insurtech Market size and Forecast, by region, by application
2. Average B-2-B price for Insurtech Market, by region, per user
3. Technology trends and related opportunity for new Insurtech Market tech suppliers
4. Insurtech Market share of leading vendors, by region,
5. Coronavirus impact on Insurtech Market earnings