Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • Sections
  • News

InsurTech premium value to more than double by 2025

Open-access content Tuesday 2nd March 2021
InsurTech premium value to more than double by 2025

The total value of insurance premiums generated by InsurTech platforms will have more than doubled within five years worldwide, forecasts by Juniper Research suggest.

In a report published yesterday, the researchers predict that the value of premiums from InsurTech – which apply new technology to boost savings, efficiency and customer experience – will grow from $250bn (£180bn) in 2020 to $556bn in 2025.

They are forecast to represent 8% of total global insurance premiums within five years, driven by weakened customer loyalty, increased competition and the shift to digital.

The report also warns that insurers in the motor, life, home and health industries risk becoming less attractive to potential customers if they fail to capitalise on the benefits that artificial intelligence (AI) underwriting systems bring.

“This is an industry with well-established traditional providers, who will have to acclimatise to quickly-shifting familiar landscapes,” Juniper Research said in an accompanying white paper.

“Whilst InsurTech in itself is not a new occurrence, with technology being present in the insurance space for years, the new technologies being employed now can be revolutionary.”

The researchers explained how the success of these platforms is due to customer experience  emerging as the single biggest factor that determines which provider a customer chooses, as cost differences become less glaring.

Ping An, Axa, Munich Re, Humana and Allianz are identified as the top five traditional insurance providers when it comes to InsurTech innovation, investment and adoption.

Unless other large insurers focus on using InsurTech solutions to improve customer interactions by creating data-driven models, the researchers warned that they could lose market share to newer, digitally-native vendors.

“There will be multiple aftershocks caused by the InsurTech earthquake, as basic business practices will be forced to evolve, and the nature in which providers approach the market will need to adapt with the implications InsurTech brings.”

 

Image credit: iStock

Author: Chris Seekings

Also filed in
News
Topics
General Insurance
Technology
Global

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Catastrophe Modelling Analyst - London Market Broker

London, England
£40000 - £50000 per annum
Reference
145925

Senior Catastrophe Analyst

England, London
£65000 - £75000 per annum
Reference
145924

Life Actuary - Financial Reporting - Day Rate contract

Negotiable
Reference
145923
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ