DUBLIN–(BUSINESS WIRE)–The “The U.S. Insurance Delivery Technology Market: Analysis by Function, by Application, by Technology Type, by End-User Size, and Trends with COVID-19 Impact and Forecast to 2026” report has been added to from ResearchAndMarkets.com offer.
The US insurance delivery technology market was valued at US$181.37 billion in 2021 and is projected to reach US$261.59 billion by 2026.
Insurance distribution technologies primarily focus on improving the efficiency of the existing model of the insurance industry. These technologies also focus on improving customer communications and automation process implementation capabilities.
The United States region offers strong growth potential for the insurance delivery technology market. Insurance technology companies have seen significant growth in auto insurance, home ownership, and cyber insurance. Such strong growth would incentivize traditional insurers to acquire technological capabilities or partner with InsurTech companies.
With a growing demand for innovative products and services from millennials, such collaboration would become a critical imperative. Through such collaborations, traditional insurers would benefit from faster results in establishing a technology culture. The US insurance delivery technology market is expected to grow at a CAGR of 7.60% during the forecast period 2022-2026.
Market Segmentation Analysis:
In 2021, the commission segment led the insurance distribution technology market, accounting for approximately 40% market share. The commission segment is expected to experience strong growth. The growing penetration of digital and telesales models is expected to increase brokers’ commission share. The bulk of the growth for integrated distributors is also expected to come from the automotive, individual health and health insurance markets, as these two markets have an increasing digital aspect.
The US market for advertising insurance distribution technology can be divided into five applications: automotive, health, life, home, and SMB commercial damage. The US residential advertising market is expected to grow significantly over the forecast period, owing to the increasing development of back-end call centers in the home insurance markets, increasing usage of connected devices to streamline processes, etc.
Cloud computing held most of the market. The cloud computing market is expected to grow at a CAGR of 26.8% during the year 2022-2026. Growth is expected to accelerate as cloud computing is a valuable delivery model that insurers can use to facilitate or accelerate business transformation. Additionally, cloud computing is having a huge impact on the insurance industry, with benefits for internal processes, new customer acquisition and policyholder retention.
Manufacturing, transportation, government, healthcare, retail and others. The healthcare segment is expected to grow at the highest CAGR of 19.7% during the forecast period. The growth can be attributed to the widespread use of the peer-to-peer platform and business models and lower insurance premium rates, leading to an increase in the number of decision makers.
The dynamics of the insurance delivery technology market in the United States:
Drivers of Growth: One of the most significant factors impacting the dynamics of the insurance delivery technology market is the growing use of mobile technology and applications. Using mobile app technology, insurance distributors can now easily reach their tech-savvy customers. These applications are extremely useful and considered invaluable assets when it comes to claims. They are able to capture and transfer data quickly, which simplifies the process and speeds up the entire insurance claims process. Additionally, the market has grown over the past few years, owing to factors such as increasing urban population, increasing millennial population, increasing use of the internet to purchase insurance products, the integration of artificial intelligence (AI) in insurance, etc.
Challenges: However, the market has faced some particular challenges, security issues, infrastructure bottlenecks, etc.
Trends: The market is expected to grow at a rapid rate over the forecast period, owing to various recent trends such as increasing use of social media as a distribution channel, growing trend towards personalization, rising adoption of telematics, the growing penetration of cloud-based insurance. technology services, growing demand for digital self-service, collaboration with big tech, growing popularity of virtual insurance advisor, emergence of subscription models, growing adoption of connected insurance, growing use of blockchain in insurance, growing popularity of gamification in the insurance industry, etc.
Telematics refers to devices that merge telecommunications and information technology. With the proliferation of smartphones in the United States, telematics has become a convenient method of data collection, with the ability to analyze information and compare user data, thereby improving underwriting with greater accuracy and efficiency. . Therefore, the increasing adoption of telematics is expected to provide more significant opportunities for the IT industry by making insurance distribution more efficient and coordinated.
COVID-19 impact analysis and way forward:
The growth of the US insurance delivery technology market has been positively influenced by the COVID-19 pandemic. The COVID-19 pandemic is forcing almost every organization to accelerate their digital transformation priorities. When it comes to the insurance delivery technology industry, the most significant change is the growing interest throughout the pandemic in more dynamic digital products. This change would lead to much higher levels of personalization and thus alter the customer experience and value proposition. In the post-COVID era, insurers need to explore technologies such as virtual reality, augmented reality, and virtual tour solutions to facilitate virtual sales and middleman empowerment.
The US insurance delivery technology market is fragmented by nature, due to the presence of a large number of small companies catering to the demands of the life and non-life insurance industries.
Some of the strategies of the major players in the insurance delivery technology market are partnerships, mergers, acquisitions, and collaborations. For example, Lemonade struck a deal in 2021 to acquire Metromile (the auto insurance-focused data science company).
While GoHealth has invested in several sectors such as HRTech, Employer Insurance, Employee Health IT, etc. MediaAlpha is one of the largest digital aggregators out there. While companies such as GoHealth, Goosehead and Porch are integrated distributors.
The ability of an insurance delivery technology company to drive innovation in the insurance industry by creating new products would help insurance companies meet the changing needs of their customers. As a result, various insurance delivery technology companies are gaining momentum by offering a new and diverse set of services.
Key players in the US insurance delivery technology market are:
Brown & Brown, Inc. (Coverhound)
Goosehead Insurance, Inc.
Porch Group, Inc.
Clover Health Investments, Corp.
Oscar Health, Inc.
Hippo Holdings Inc. (Hippo Insurance Services)
Main topics covered:
2.1 Insurance Delivery Technology: An Overview
2.1.1 Introduction to insurance distribution
2.1.2 Introduction to Insurance Distribution Technology
2.2 Segmentation of insurance distribution: an overview
2.2.1 Insurance Distribution Segmentation
2.3 Insurance Distribution Technology Segmentation: An Overview
2.3.1 Insurance Distribution Technology Segmentation
3. Analysis of the American market
3.1 The US insurance distribution market: an analysis
3.2 The US Insurance Distribution Market: Application Analysis
3.3 The US Insurance Distribution Market: Analysis by Segment
3.4 The U.S. Insurance Delivery Technology Market: An Analysis
3.5 The US Insurance Delivery Technology Market: Function Analysis
3.6 The US Insurance Delivery Technology Market: Technology Type Analysis
3.7 The US Insurance Delivery Technology Market: End User Analysis
4. Impact of COVID-19
4.1 Impact of COVID-19 on the insurance industry
4.1.1 Impact of COVID-19 on the insurance industry
4.2 Impact of COVID-19 on the Insurance Technology industry
4.2.1 Impact of COVID-19 on the Insurance Technology industry
5. Market dynamics
5.1 Engine of growth
5.1.1 Increase in urban population
5.1.2 Increase in millennial population
5.1.3 Increase in the use of the Internet to purchase insurance products
5.1.4 Increase in the use of technology and mobile applications (Apps)
5.1.5 Integrating artificial intelligence (AI) into insurance
5.2.1 Security issues
5.2.2 Infrastructure Bottlenecks
5.3 Market trends
5.3.1 Growing use of social media as a distribution channel
5.3.2 Rising trend of personalization
5.3.3 Increasing adoption of telematics
5.3.4 Growing Penetration of Cloud-Based Insurance Technology Services
5.3.5 Growing demand for digital self-service
5.3.6 Collaboration with BigTechs
5.3.7 Growing Popularity of Virtual Insurance Advisor
5.3.8 Emergence of subscription models
5.3.9 Growing adoption of connected insurance
5.3.10 Increasing use of blockchain in insurance
5.3.11 Growing popularity of gamification in the insurance industry
6. Competitive landscape
6.1 US Insurance Delivery Technology Market Players by Business Models
7. Company Profiles
7.1 Company Overview
7.2 Operational sector
7.3 Business strategy
For more information on this report, visit https://www.researchandmarkets.com/r/6qhgzm