Skip to main content

Insurtech Platform Revenue to Reach $235 Billion in 2021

The drivers of fintech adoption in the developed world are different to those of the developing world. The last financial crisis resulted in a mistrust of legacy financial institutions, which has fueled the growing consumer appetite for products and services from innovative new providers.

Fintech platform revenues derived from supporting the insurance industry (Insurtech) will reach almost $235 billion globally by 2021, that's up by 34 percent y-o-y from an estimated $175 billion this year, according to the latest market study by Juniper Research.

Growth will be driven by a combination of factors, including:
  • Machine Learning investments enabling insurance providers to personalise products;
  • Insurers deploying mobile apps to improve their customer experience;
  • Investments in blockchain technologies to underpin smart contracts.


Fintech Market Development Trends

The new worldwide market study uncovered that the value chain within the insurance market is transforming rapidly. According to Juniper analysts, this will drive traditional insurance providers to improve their offerings and customer service, thereby reducing the impact of competition from fintech suppliers -- particularly in the automobile sector.

Moreover, investments in machine learning have enabled providers of car insurance to more accurately reflect usage and driving behavior in their quotes. As machine learning enables insurers to segment drivers into risk groups, the technology will then be used more widely -- i.e. to deliver quotes for household contents insurance, by precisely reflecting the value of applicant possessions.

Juniper also predicts that blockchain will accelerate insurer ability to personalize products with smart contracts and/or smart policies adapting automatically to the changing circumstances of their customers.

However, the research cautioned that while telematics is an innovative means of collecting risk assessment data, many consumers may regard the sharing of information on their driving habits and destinations as intrusive.

"Insurers need to be transparent with regards to how they use customer data. While consumers need to accept that in order to receive tailored polices that they will come under greater scrutiny. The prospect of saving money will be the overriding priority for the majority of consumers," said Michael Larner, analyst at Juniper Research.

Popular posts from this blog

Digital Transformation for the Oil and Gas Sector

The savvy CEOs of multinational organizations will accelerate their investment in digital transformation projects in 2022, and beyond, to improve their competitiveness. Every industry leader that is forward-looking will act swiftly to grasp the upside opportunity. Global oil & gas companies face a myriad of operational, commercial, and existential security threats. According to the latest worldwide market study by ABI Research, oil & gas firms apply digitalization to combat these threats and will spend $15.6 billion on digital technologies by 2030. Oil & Gas Digital Apps Market Development Investments in digitalization can help to analyze a supply pipeline’s condition, prepare for fluctuations in the changing prices for oil and gas, as well as aid action plans to create more sustainable operations and transfer to producing renewable energy sources. "Safety and Security are top priorities for oil & gas operators. Data analytics allied with IoT platforms have become

The Fastest-Growing Mobile Opportunity in 2022

The number of mobile communication subscriptions worldwide is currently estimated at 8 billion, with 6 billion on smartphone connections, from a user base of 5.9 billion unique subscribers among a global population of 7.9 billion. Fifth-generation (5G) mobile service subscriptions using a compatible device significantly grew during the COVID-19 pandemic, but 4G connections remain the dominant force within the global telecom service provider sector. While the use of mobile phones is common throughout developing nations, 4G services are still an emerging technology in many parts of the world. Overall, 5G subscriptions will likely grow from 580 million at the end of 2021 to 3.5 billion by the end of 2026. 5G Mobile Market Development According to the latest worldwide market study by Juniper Research, revenue generated from 5G mobile services will reach $600 billion by 2026 -- representing 77 percent of global network operator-billed revenue. The adoption of 5G services across consumer and

2022 Tech Trends Outlook: What Happens Next?

This year may very well be another period of unprecedented challenges and opportunities. In 2022, several highly anticipated technology-related advancements will NOT happen, according to the predictions by ABI Research. Their analysts identify many trends that will shape the technology market and some others that, although attracting huge amounts of pundit speculation and commentary, are less likely to advance rapidly over the next twelve months. "The fallout from COVID-19 prevention measures, the process of transitioning from pandemic to endemic disease, and global political tensions weigh heavily on the coming year's fortunes," said Stuart Carlaw, chief research officer at ABI Research . What Won’t Happen in 2022? Despite all the headlines and investments, the metaverse will not arrive in 2022 or, for that matter, within the typical 5-year forecast window. The metaverse is still more of a buzzword and vision than a fully-fledged end goal with a clearly defined arrival d