Global Digital Insurance Platform Market
Global Digital Insurance Platform Market Size More Than Doubles to Touch USD 250.3 Billion by 2029
Published | 21 September 2023
Global digital insurance platform market is flourishing because of the growing adoption of cloud technology, an increasing need for efficiency and effectiveness, and high adoption of digital solutions.
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the global digital insurance platform market size at USD 115.37 billion in 2022. During the forecast period between 2023 and 2029, BlueWeave expects the global digital insurance platform market size to grow at a significant CAGR of 11.7% reaching a value of USD 250.3 billion by 2029. Major growth drivers for the global digital insurance platform market include an increasing trend of digitalization across various industries and growing numbers of insurers shifting from product-centric to consumer-centric strategies. Another driving force is the growing awareness among the global population regarding the advantages of digital insurance channels. These digital avenues empower insurers to transition from complex core systems to a business model characterized by growing flexibility, technical proficiency, innovations, and an increasing fluency in the digital landscape. These digital avenues empower insurers to transition from complex core systems to a business model characterized by growing flexibility, technical proficiency, innovation, and an increasing fluency in the digital landscape. Notably, these digital platforms offer numerous advantages, including accelerated processing, enhanced customer experiences, streamlined claims processing, improved communication channels, and simplified claim status verification. These platforms also facilitate insurers in obtaining pre-approvals from insurance providers through online processes, thus reducing delays and minimizing errors during the claims settlement process. Also, the integration of artificial intelligence (AI) into these platforms enhances the overall customer experience, reduces claim processing times, and brings about transformative changes in the underwriting processes of the industry. However, privacy & security concern and difficulties involved in the integration of insurance platforms with legacy systems are anticipated to restrain the overall market growth during the period in analysis.
Global Digital Insurance Platform Market – Overview
Digital insurance solutions encompass online platforms and technological tools designed to deliver personalized and efficient insurance services to clients. These digital platforms offer a multitude of advantages compared to traditional insurance systems, notably simplifying coverage. They empower customers with the ability to research, compare, and purchase insurance without the involvement of intermediaries or agents. Importantly, digital insurance platforms enable insurers to craft personalized products, facilitating more precise underwriting and pricing tailored to individual clients. Notably, these platforms excel in fostering meaningful customer engagement across multiple channels, enhancing the overall personalization offered to clients. This, in turn, drives increased adoption of these platforms among customers. Also, the elimination of intermediaries and agents significantly reduces insurance costs. For instance, as per an industry estimate, brokerage fees for term plans can account for up to 30% of the premium. Moreover, there exists a notable difference in premiums when purchasing insurance online versus offline, typically ranging between 5-10%.
Impact of COVID-19 on Global Digital Insurance Platform Market
COVID-19 pandemic had a positive impact on the global digital insurance platform market. The crisis accelerated the urgency for insurers to adopt digital solutions to meet the evolving needs of remote customers. The pandemic highlighted the importance of contactless interactions, remote policy management, and efficient claims processing. As a result, there was a surge in demand for digital insurance platforms. However, the economic downturn caused by the pandemic also led to cost-cutting measures, affecting some insurance technology investments. Overall, COVID-19 catalyzed digital transformation in the insurance sector, emphasizing the need for agile and tech-driven solutions to navigate unprecedented challenges.
Global Digital Insurance Platform Market – By Application
Based on application, the global digital insurance platform market is divided into Automotive, Transportation, and Logistics, Life & Health, Commercial & Residential Buildings, Business & Enterprise, and Agriculture segments. The automotive, transportation, and logistics segment holds the highest share in the global digital insurance platform market by application. The segment relies on efficient risk management and claims processing due to the inherent risks involved in vehicle operations and cargo transportation. Digital platforms offer real-time risk assessment, telematics integration, and cost-effective policies, aligning with the industry's demand for streamlined operations and cost savings. Customization, compliance support, and global reach further enhance the appeal of digital solutions, making them the preferred choice for businesses in this sector seeking effective risk mitigation and insurance management.
Major players operating in the global digital insurance platform market include IBM Corporation, Microsoft Corporation, Oracle Corporation, Pegasystems Inc., Wipro Limited, DXC Technology Company, Appian Corporation, Mindtree Ltd, Prima Solutions SA, Majesco, EIS Software Limited, Lemonade Insurance Company, Oscar Insurance, and OutSystems. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of Global Digital Insurance Platform Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Global Digital Insurance Platform Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
BlueWeave Consulting provides comprehensive Market Intelligence (MI) Solutions to businesses regarding various products and services online and offline. We offer all-inclusive market research reports by analyzing qualitative and quantitative data to boost the performance of your business solutions. BlueWeave has built its reputation by delivering quality inputs and nourishing long-lasting relationships with its clients. We are one of the promising digital MI solutions companies providing agile assistance to make your business endeavors successful.
BlueWeave Consulting & Research Pvt. Ltd
+1 866 658 6826 | +1 425 320 4776 | +44 1865 60 0662
- Digital Insurance Platform Market - Global Size, Share, Trend Analysis, Opportunity and Forecast Report, 2019–2029, Segmented By Component (Solution, Service); By Deployment Mode (On-premises, Cloud); By Enterprise Size (Large Enterprises, Small & Medium-sized Enterprises (SMEs)); By Application (Automotive, Transportation, and Logistics, Life & Health, Commercial & Residential Buildings, Business & Enterprise, Agriculture); By End User (Insurance Companies, Aggregators, Third-Party Administrators & Brokers); By Region (North America, Europe, Asia Pacific, Latin America, Middle East and Africa)
Publish Date: September 2023
Increasing adoption of digital solutions, a rising need for efficiency and effectiveness, and growing popularity of cloud technology are projected to propel the expansion of the global digital insurance platform market during the forecast period between 2023 and 2029.
Relevant Press Releases
- Vietnam Buy Now Pay Later (BNPL) Services Market Size Zooming 7.4X to Touch USD 12.6 Billion by 2029
- Global Marine Cargo Insurance Market Size Set to Touch USD 38 Billion by 2029
- South Africa P2P Lending Market Size Zooming about 10X at Robust CAGR of 31% to Cross USD 11 Billion by 2029
- Global Medical Equipment Financing Market Size Expands to Touch USD 260 Billion by 2029
- India Medical Equipment Financing Market to Grow at a CAGR of 13% during Forecast Period