The digital insurance platform market is expected to grow from USD 86.20 billion in 2018 to USD 164.13 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 13.7% during the forecast period. This growth is attributed to the growing adoption of Internet of Things (IoT) products, rise in the shift of insurers’ focus from product-based strategies to customer-centric strategies, and increased awareness among insurers to digitalize channels.
The digital insurance platform is a business model that enables stakeholders in the ecosystem of the insurance industry to connect through a single centralized framework for solving multiple critical issues in the developing high-value ecosystems. The platform acts as an enabler for insurers to shift from traditional business processes toward the digital mode, thereby making the insurance ecosystem customer-centric. It helps insurers in scaling their operations up and down with built-in end-to-end functionalities. Digital insurance platforms empower insurers by providing the efficiency of central-core systems and the differentiation of easy-to-compose customer experience.
The digital insurance platform providers’ prime responsibility is to ensure the proper deployment and integration of digital insurance solutions as per the specific requirements of clients. The digital insurance platform provider’s services are segmented into managed services and professional services, which comprise consulting, implementation, and support and maintenance. Enterprises are majorly adopting managed services, as managed service providers would take care of digital insurance platforms while enterprises can focus on their core business competencies.
The automotive and transportation segment has seen a large-scale adoption of digital insurance platforms. Automotive and transportation insurance companies are increasingly adopting newer technologies to deliver new products for meeting the changing customer expectations. Technologies such as Artificial Intelligence (AI) and telematics help insurance companies streamline their business operations and deploy new channels of insurance distribution. The data gathered from the telematics-driven method help insurers in building an effective automated claim management process and enable insurers to deliver tailored products to match the buyer preferences. The digital insurance platform enables customers to search online for quotation, compare insurance policies, fill the information online, and get the best policy with a suitable coverage in no time.
North America is expected to account for the largest market size and dominate the digital insurance platform market from 2018 to 2023. This region has a high concentration of large insurance companies, which largely contribute to the market. However, the Asia Pacific (APAC) region is expected to provide opportunities for digital insurance platform services providers. These growth opportunities can be attributed to the increasing commercial investments by several companies in the APAC region.
Digital insurance platforms have been introduced in the market, however end-users prefer to use the traditional legacy systems instead of adopting new technologies due to financial and technological constraints. Traditional systems do not have well-defined interfaces and their documentation is scarce, hence may not always be compatible with the third-party software, thus resulting in errors. This reluctant nature of insurers could act as a major restraint in the adoption of digital insurance platforms.
The major vendors in the digital insurance platform market include Accenture (US), TCS (India), IBM(US), DXC Technology (US), SAP (Germany), Oracle (US), Microsoft (US), Infosys (India), Pegasystems (US), Appian (US), Cognizant (US), Mindtree (India), Prima Solutions (France), Fineos (Ireland), Bolt Solutions (US), Majesco (US), EIS Group (US), Cogitate Technology Solutions (US), Inzura (UK), Duck Creek (US), RGI Group (Italy), StoneRiver (US), Vertafore (US), iPipeline (US), and eBaoTech (China).
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