The ‘Research And Markets’ report suggested that the growth can be attributed to the fact that the insurance industry, which had global premiums exceeding $4.9tn in 2017, has begun to modernize.
“Although late, the industry now appears to be at a key inflection point with many experts viewing the digitization of insurance as the next big opportunity after FinTech,” the researchers said in a statement.
The report suggested that the growth will be noticeable with InsurTech innovators simplifying the claims process, improving communication with clients, and the capabilities to implement automation.
It added that the health insurance market is expected to have the highest growth rate in the upcoming years as the adoption of InsurTech is significantly higher compared to that of other insurance sectors, such as property and casualty, vehicle, and others.
Looking at the leading trends of the industry, ‘Research And Markets’ noted that the insurance industry has been very slow to innovate and to capitalize on the opportunities of digitalizing their offering. The reason for that is that incumbents have been limited by regulation and limited competition.
So, traditional industry players have now begun to sign partnerships with InsurTech startups to help them innovate.
Some have even suggested that COVID-19 will be the push insurers need to embrace InsurTech innovation. The argument is that the current crisis will demonstrate the need for traditional players to innovate.