Insurance premiums generated by emerging InsurTech services will exceed $400 billion by 2023, up from an estimated $187 billion in 2018, according to a new study from U.K.-based Juniper Research.
The study found that while InsurTech enables rapid transformation of traditional insurance business models, the adoption of these platforms has been limited due to relatively slow rates of innovation within the industry. Juniper forecasts that this sector will represent 7 percent of the global insurance market by 2023 compared to approximately 4 percent in 2018.
The study, “Insurtech: Cost Savings, Insurer Readiness & Market Forecasts 2018-2023,” found that despite still being in the early deployment stage, the introduction of artificial intelligence in the claims process will generate significant cost savings. Juniper forecasts that across property, health, life and auto insurance, the annual cost savings will exceed $1.2 billion by 2023, a fivefold increase over 2018.
Juniper’s “Insurtech Readiness Index” analyzed leading insurers to evaluate their readiness scores and ranked the top 20 based on metrics including InsurTech offerings, investment and future potential. The top 5 players leading InsurTech transformation were:
- Ping An
Source: Juniper Research