According to a recent report published by Allied Market Research, titled, “Digital Insurance Platform Market by Component, Deployment Model, Enterprise Size, Application, and End User: Global Opportunity Analysis and Industry Forecast, 2021–2030,” 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.
Insurance companies can ease policy administration process, offload agents from administrative tasks, and can focus on high-value sales, intuitive dashboards and clear key performance indicator (KPI) for agents with an implementation of digital insurance platform. Digital insurance platform is the emergence of new technologies engaged in transforming the insurance industry, reducing costs for consumers & insurance companies, and enhancing better customer experience.
Factors such as rapid digitalization of business models and saturation of the insurance industry propel the growth of the global digital insurance platform market. In addition, incorporation of technologies in existing product lines among insurance companies and untapped potential of emerging economies are expected to provide lucrative opportunities for the digital insurance platform industry providers in the coming years.
On the basis of component, the solution segment dominated the market in 2020 and is projected to maintain its dominance during the forecast period. With an increased technological advancement, large volumes of information related to customers & business operations are stored & handled by insurance companies across the globe. Therefore, digital insurance platform solutions help these companies in optimizing performance with predictive analytics, enhancing customer experience, improving risk assessments, reducing costs in claiming processes, and ensuring sustainable business growth.
Region wise, the digital insurance platform market was dominated by North America in 2021, and is expected to maintain this trend during the forecast period. This is attributed to increased adoption of digital insurance platform among insurance companies and surge in partnership of digital insurance platform provides with traditional insurers are the major factors that influence the growth of the market in this region. However, Asia-Pacific is expected to grow at the fastest CAGR during the forecast period, as several insurers are adopting & heavily investing in digital insurance platform to boost business efficiency, lowering compliance risk exposure and improving claim settlement process in the region.
COVID-19 Impact Analysis
The digital insurance platform market growth has increased tremendously during the COVID-19 pandemic situation. This is attributed to insurance carriers are accelerating business operations in areas such as digital customer interactions in distribution channel, improving customer service, and hassle-free claims settlements. Moreover, with the help of digital insurance platform, insurers are able to access remote imaging in assessing underwriting risk & evaluate claims through online channels. Therefore, insurance companies have adopted digital insurance platform to meet changing customer’s demand, which had a positive impact on the market. As a result, these are the major factors promoted the growth of the digital insurance platform market trends during the pandemic situation.
Key Findings of The Study
- By application, the automotive transportation & logistics led the highest digital insurance platform market share, in terms of revenue in 2020.
- On the basis of enterprises size, the small & medium-sized enterprises (SMEs) segment is expected to exhibit the fastest growth rate during the digital insurance platform market forecast period.
- Region wise, North America generated the highest revenue in 2020.
The key players operating in the digital insurance platform market analysis include DXC Technology Company, EIS Software Limited, Lemonade Insurance Company, Majesco, Oscar Insurance, OutSystems, Quantemplate, Shift Technology, Wipro Limited, and Zhongan Insurance. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.