Online Insurance Market Expected to Reach $330.1 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Online Insurance Market," The online insurance market was valued at $53.2 billion in 2021, and is estimated to reach $330.1 billion by 2031, growing at a CAGR of 20.2% from 2022 to 2031.

The online insurance platform is a business model that acts as an enabler for insurers to shift from traditional business processes toward the digital mode, in addition, it helps insurers in scaling their operations with built-in end-to-end functionalities. Moreover, online insurance platforms empower insurers by providing the efficiency of central-core systems and the differentiation of easy-to-compose customer experience. The online insurance platform providers’ prime responsibility to ensure the proper deployment and integration of digital insurance solutions as per the specific requirements of clients.

Furthermore, increasing internet penetration and increase in smartphone usage are boosting the growth of the global online insurance market. However, digital transformation is time-consuming and privacy and security concerns are hampering the online insurance market growth. On the contrary, the increasing adoption of digital solutions is expected to offer remunerative opportunities for the expansion of the online insurance market during the forecast period.

Depending on insurance type, the large life insurance segment holds the largest online insurance market share as it helps to improve mortality and lapse predictions and optimize decision-making. However, the health insurance segment is expected to grow at the highest rate during the forecast period, owing to increasing adoption of a technology revolution and increase in data availability.

Region-wise, the online insurance market size was dominated by North America in 2021, and is expected to retain its position during the forecast period, large scale adoption of IoT and other technology solutions. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to growing economies such as India and China and increasing demand to buy insurance online.

Key players operating in the market are facing the negative impact of the COVID-19 outbreak and are experiencing a severe decline in their revenue. For instance, as AI becomes more deeply integrated into the industry, carriers must position themselves to respond to the changing business landscape. Insurance executives must understand the factors that will contribute to this change and how AI will reshape claims, distribution, and underwriting and pricing. With this understanding, they can start to build the skills and talent, embrace the emerging technologies, and create the culture and perspective needed to be successful players in the insurance industry of the future.

For instance, on August 29, 2022, India Inc. is increasingly looking at dedicated cyber security insurance coverage to address pervasive cyber threats including malware attacks, compromised emails, cryptojacking, or instances of disgruntled employees or adversaries attacking software systems and machinery. The outbreak of COVID-19 is expected to provide numerous opportunities for the market to grow during the forecast period due to an increase in demand for insurance industry digitization and to provide insurance quotes online. The changing (and growing) demands of policyholders are, besides pure efficiency, the important second driver of innovation. In addition, insurers have mainly used IoT capabilities to aid interactions with customers and to accelerate and simplify underwriting and claims processing. Increasingly, however, new IoT-based services and business models are emerging that are highly attractive to insurers. In the context of these new business models, digital networking through the IoT could become a strategic component for insurers. For example, insurers could partner with companies to provide improved or new cross-industry products and services that harness IoT technologies and the new ecosystems.

Key Findings of the Study

• By enterprise size, the large enterprise segment accounted for the largest online insurance market share in 2021.
• Region-wise, North America generated the highest revenue in 2021.
• Depending on insurance type, life insurance generated the highest revenue in 2021.

The key players that operate in the online insurance market are Allianz SE, assicurazioni generali spa, AXA Group, Munich Re, Swiss Re, Aviva, Zurich Insurance Group, Esurance Insurance Services, Inc, Lemonade, Inc., RooT. These players have adopted various strategies to increase their market penetration and strengthen their position in the online insurance industry.