Market Trends of US Insurtech Industry
Surged Funding towards Insurtech Companies
The Insurtech companies are flourishing. The companies in the insurtech sector raised over USD 27 billion in private funding in just over 350 deals in the previous year. The pandemic has accelerated the industry’s digital transformation by at least five years forcing incumbents to open or enhance digital distribution channels and to make corresponding upgrades to back-office capabilities. The demand for digital solutions is increasing across the insurance value chain, from quote issuance to claim settlement, as our interviews with insurtech C-suite executives showed.
Non Life Insurance is Increasing with Higher Rate
The increase in non-life insurance, also known as property and casualty insurance, is indeed contributing to the growth of the Insurtech market in the United States. The surge in non-life insurance is prompting insurers to adopt insurtech solutions for various reasons. Advanced data analytics and artificial intelligence enable more accurate risk assessment, helping insurers better understand and price policies for non-life coverages like property and casualty. This enhances underwriting precision and reduces the likelihood of losses. Insurtech facilitates improved customer experiences. Digital platforms and mobile apps enable policyholders to purchase, manage, and claim insurance seamlessly, enhancing customer satisfaction and loyalty. Furthermore, insurtech supports automation in claims processing. This expedites the settlement process for non-life insurance claims, reducing administrative costs and increasing overall operational efficiency.
