Digital Insurance Platform Market

Digital Insurance Platform Market Outlook – 2030 

The global digital insurance platform market size was valued at $96.34 billion in 2020, and is projected to reach $279.51 billion by 2030, growing at a CAGR of 11.3% from 2021 to 2030.

In the wake of COVID-19 pandemic situation, digital insurance platforms have strengthened the remote access policy and procedures, making sure that the security networks are top notch, the data exchanged between the insurer and the customer is protected and high levels of security implemented across systems. In addition, the COVID-19 situation has also given them the opportunity to regroup and redesign any operational tactics & solutions required to meet the demand of the policyholders via digital platforms.

Digital insurance platform enables insurers to shift from complex core systems to a greater technical agility and flexibility, digital fluency, and innovation in the existing business model. In addition, it helps a company to create, manage, monitor, and control the digital insurance ecosystem. The digital insurance platform involves several technologies such as APIs, artificial intelligence, cloud-native computing, and machine learning, and other insurance specific capabilities and content.

The digital insurance platform enables the personalization of insurance products, thereby allowing insurers to price and underwrite policies more accurately for individual customers. In addition, enables more meaningful customer engagement through multiple channels & allows to provide personalized experiences to the customers, which is propelling the digital insurance platform market growth. However, digital transformation is time consuming and privacy & security concern are major factor that limits the market growth. On the contrary, developing economies offer significant opportunities for digital insurance platform companies as banks increasingly rely on these digital insurance platforms to determine credit worthiness of consumers due to high chances of consumers turning bad debts for banks. Moreover, digital insurance platform allows to improve market share & profitability for the insurers and urges to apply digital technologies in new ways and offer tangible value to customers, which is anticipated to provide a potential growth opportunity for the digital insurance platform market in the upcoming years. 

The report focuses on growth prospects, restraints, and trends of the digital insurance platform market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the digital insurance platform market outlook.

Segment Overview

The digital insurance platform market is segmented on the basis of component, deployment model, enterprise size, application, end user, and region. Based on component, the market is bifurcated into solution and services. The services segment is further segregated into professional and managed. By deployment model, the market is bifurcated into on-premise and cloud. By enterprise size, it is divided into large enterprises and small & medium enterprises (SMEs). Application covered in the report include automotive transportation & logistics, life & health, commercial & residential buildings, business & enterprise, agriculture, and others. Based on end user, the market is segmented into insurance companies, aggregators, and third-party administrators & brokers. Region-wise, it is analysed across North America, Europe, Asia-Pacific, and LAMEA.

Competitive Analysis 

The digital insurance platform market analysis includes top companies operating in the market such as DXC Technology Company, EIS Software Limited, Lemonade Insurance Company, Majesco, Oscar Insurance, OutSystems, Quantemplate, Shift Technology, Wipro Limited, and Zhongan Insurance. These key players have adopted strategies, such as product portfolio expansion, mergers & acquisitions, agreements, regional expansion, and collaboration, to enhance their market penetration.

COVID-19 Impact Analysis

The COVID-19 pandemic has a positive impact on the digital insurance platform industry. Many insurance providers as well as policyholders started to opt for these platforms as providing insurance physically was not possible during the lockdown period. In addition, the insurance industry showed signs of massive and unprecedented progress during the pandemic. Therefore, demand for digital insurance platform increased during the COVID-19 pandemic and had a positive impact on the market. 

Top Impacting Factors

Digital Insurance Platforms Help to Earn Customer Loyalty 

Digital insurance platforms enable more meaningful customer engagement through multiple channels, provides personalized experiences, and above all, enables online claims processing within minutes. In insurance, it generally costs five times more to acquire a new customer versus converting an existing one. In addition, customers satisfied with the insurance offerings are 80% more likely to renew their policies than unsatisfied ones. Digital policy application and renewal can be quick, hassle-free and available 24/7, making the process seamless for insurance buyers. Therefore, digital insurance platforms help to earn customer loyalty which is further boosting the digital insurance platform market growth.

Privacy & Security Concern

Data and payment security are major concerns when it comes to digitizing insurance. Identity thefts and hacking can increase with greater digital interventions. An insurance company that is adopting digital insurance platforms will have to ensure that background checks are thorough, claims are genuine, and that their online infrastructure has the best protection against needless attacks. While digital insurance platform market offers benefits for consumers, they also introduce potential risks. For instance, consumers need to be assured that the information provided by digital platforms is in their best interests. Over-simplification and biased information would imply that search results, rankings or other information generated by these platforms may not necessarily reflect individual user preferences. Additionally, the use of large amounts of personal data by online platforms raises concerns about intrusiveness, fairness and discrimination. Therefore, this is a major factor limiting the growth of the market.  

Increasing Adoption of Digital Solutions

The digital boom in the insurance sector is driven by the need to build direct bridges with the end consumer through the smart phone in order to survive in an era where the customer is using the phone as the primary medium of communication. The trend has been fast paced driven partly due to the large base of phone users and partly due to lesser weight of legacy systems. Digitalization presents a growing digital insurance platform market opportunity to improve market share and profitability for the insurers. It also urges insurers to apply digital technologies in new ways and offer tangible value to customers. Therefore, it presents the possible opportunities of digitalization for insurers & customers as adoption of digital solutions for insurance policies will keep increasing in the future. Therefore, this factor will provide major lucrative opportunities for the growth of the digital insurance platform market in upcoming year.

Key Benefits for Stakeholders 

• The study provides in-depth analysis of the global digital insurance platform market share along with current trends and future estimations to illustrate the imminent investment pockets.
• Information about key drivers, restrains, and opportunities and their impact analysis on the global digital insurance platform market size are provided in the report.
• Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the digital insurance platform market.
• An extensive analysis of the key segments of the industry helps to understand the digital insurance platform market trends.
• The quantitative analysis of the global digital insurance platform market forecast from 2021 to 2030 is provided to determine the market potential. 

 Digital Insurance Platform Market Report Highlights