Global Digital Insurance Platform Market By Type (Solution, Service, Professional, Managed), By Application (Automotive Transportation & Logistics, Life & Health, Commercial &, Residential Buildings,...
Report Id: 44218 | Published Date: Jul 2024 | No. of Pages: 10 | Base Year for Estimate: Jul 2024 | Format:
Market Overview:
The insurance platform comprises websites that provide information about insurance policies and related details. Specifically, digital insurance platforms are designed to help customers access insurance information easily through digital means. By focusing on individual client needs and leveraging emerging technologies, insurers can enhance their service. The digital insurance platform software also helps businesses manage and control the digital insurance ecosystem by integrating various modules such as policy implementation, claim management and billing.
The global Insurance platform is valued at USD 81.8 billion in 2024 and is projected to reach USD 156.1 billion by 2029, growing at a CAGR of 13.9% from 2024-2029. Factors like technological advancement and insurers’ growing awareness of digital channels will moderate the market growth rate for digital insurance platforms.
Premium Insights:
Continuous innovation in AI, ML, Blockchain and big data analytics is enhancing the capabilities of digital insurance platforms, offering more personalised and efficient services
Digital platforms enable better compliance with evolving regulations through automated reporting and monitoring tools.
Global Digital Insurance Platform Market Dynamics:
Drivers: Evolving customer expectations, rise of InsurTech innovation, focus on operational efficiency and usage of cloud-based digital solutions.
-Policyholders are increasingly demanding seamless digital interactions, personalized services, and on-demand access to insurance information. Digital platforms cater to these expectations by offering online quote comparison, self-service options, and efficient claims processing.
-The emergence of InsurTech companies is disrupting the traditional insurance landscape. Digital platforms provide a foundation for integrating innovative insurance products, telematics-based usage-dependent coverage, and AI-powered risk assessment tools.
-Digital insurance platforms enable insurers to streamline operations, automate tasks, and improve overall efficiency. This translates to faster quote turnaround times, quicker claims processing, and reduced operational costs.
-An increase in the rate at which insurers are utilising cloud-based digital solutions in order to achieve high scalability will accelerate the market’s growth for digital insurance platforms
Restraints: Integration challenges, resistance to change from traditional agents and competition and market saturation.
-Many insurance companies still rely on outdated legacy systems. Integration of these systems with new digital platforms can be complex and expensive, hindering the pace of digital transformation.
-The shift to digital platforms may be met with resistance from traditional insurance agents who fear job displacement. Reskilling and training initiatives are crucial for a smooth transition.
-The digital insurance platform market is becoming increasingly competitive. Standing out from the crowd and offering unique value propositions can be challenging for new entrants.
Opportunities: Focus on AI and ML, open-source platforms and API integration and expansion into emerging markets
-Integrating AI and ML capabilities into digital platforms can personalize user experiences, automate claims processing, and improve fraud detection.
-Developing open-source platforms and promoting standardized APIs can encourage collaboration and innovation within the InsurTech ecosystem.
-Emerging economies with growing internet penetration and smartphone adoption present significant opportunities for the digital insurance platform market. Tailoring solutions to local needs and regulations is essential.
Market By Digital Insurance Platform Type Insights:
Based on component type, the market can be bifurcated into solutions and services. The solution segment is expected to hold a dominant market share in 2024 as it encompasses the core software platform that facilitates various insurance functionalities like policy management, claims processing and customer self-portals. These solutions empower insurers to streamline operations, improve efficiency and enhance the customer experience.
Based on services, the market can be segmented into Professional and managed services. Managed services are expected to lead this segment in 2024. This offering provides ongoing maintenance, support and updates for the digital insurance platforms. This also allows the insurance companies to focus on their core business while ensuring their platform remains functional, secure and up-to-date.
Based on the deployment model, the market can be segmented into on-premise and cloud. Could deployment is expected to dominate market share in 2024. These platforms offer scalability, accessibility and cost-effectiveness for insurance companies of all sizes. They eliminate the need for extensive hardware infrastructure and allow for easy updates and maintenance.
Based on application, the market can be segmented into automotive transportation & logistics, life & health, commercial & residential buildings, business & enterprise, agriculture and others. life & health insurance segment is expected to be a key driver of the market as digital platforms offer streamlined policy administration, automated claims processing and improved customer service for life and health insurance products. Although insurance on automotive & transportation and commercial & residential buildings is expected to account for a significant market share.
Market By End-User Insights:
Based on end-use, the market is dominated by insurance companies as they directly benefit from the operational efficiencies and improved customer experience offered by digital platforms. However, insurance aggregators and TPAs are increasingly adopting digital platforms to offer a wider range of insurance products and enhance customer service for policyholders.
Market By Region Insights:
Based on regional coverage, the market is segmented into North America, Europe, Asia-Pacific, Latin America and Middle East & Africa. Asia-Pacific is expected to hold a significant market share as Insurance companies throughout Asia are witnessing the integration of social media and payment systems into platforms that allow for highly responsive customer engagement and targeted insurance marketing. These platforms, for the first time, are also providing marketing and payment services to insurers.
Competitive Scenario:
Major players in the market are Tata Consultancy Services Limited, DXC Technology Company, Bolt Solutions, Infosys Limited, Pegasystems Inc., Appian, Cognizant, Inzura Limited, Mindtree Ltd., Cogitate Technology Solutions, Majesco, Prima Solutions, Vertafore, Inc., FINEOS, Inc., Duck Creek Technologies, EIS Group, iPipeline, Inc., eBaoTech Corporation, IBM, Microsoft, Accenture, Oracle, and SAP SE, among others.
Scope of Work-Global Digital Insurance Platform Market
Key Market Developments:
August 2022-The health data platform Human API and USAA Life have announced a collaboration aimed at further digitising the life insurance purchasing process. Using Human API's Health Intelligence Platform—which includes a patient portal network and HIPAA-authorized networks—USAA will have access to its members' digital health data in order to improve user experience and expedite and expedite the purchasing process.
April 2023-In order to help clients implement and combine EIS's cloud-native and digital insurance platform, a primary application programming interface, to address challenges and future requirements in the insurance industry, the EY organisation announced a partnership with Ernst & Young LLP (EY US) and the EIS Group Inc. (EIS), one of the global providers of digital insurance platforms.
September 2023-Microsoft and Majesco, two of the world's top providers of cloud insurance software, have partnered to advance insurers' long-term digital transformation. Thanks to the partnership, customers can now access a secure, scalable cloud environment through Microsoft Cloud and Analytics.
Frequently Asked Questions (FAQs)
What are the main drivers of the digital insurance platform market?
Ans. Key drivers include evolving customer expectations, a rise of InsurTech innovation, the focus on operational efficiency and the usage of cloud-based digital solutions.
Who are the major players in the digital insurance platform market?
Ans. Major players are Tata Consultancy Services Limited, DXC Technology Company, Bolt Solutions, Infosys Limited, Pegasystems Inc., Appian, Cognizant, Inzura Limited, and Mindtree Ltd.
What are the primary challenges faced by the digital insurance platform market?
Ans. Challenges include integration challenges, resistance to change from traditional agents and competition and market saturation
What opportunities exist in the digital insurance platform market?
Ans. Opportunities include a focus on AI and ML, open-source platforms and API integration and expansion into emerging markets.
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