Market Overview

Juniper Research: Insurtech-based Premiums to Exceed $400 Billion by 2023, Representing 7% of Global Insurance Market

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Insurers Slow to Capitalise Upon Cost-Saving Benefits

A new study from Juniper
Research
has found that insurance premiums generated by emerging
insurtech services will exceed $400 billion by 2023, up from an
estimated $187 billion in 2018. The research found that insurtech
platforms will equip insurers to meet the challenges of diminishing
margins and increased competition, creating an opportunity insurers
cannot ignore in the future.

However, while insurtech enables rapid transformation of traditional
insurance business models, the adoption of these platforms by incumbents
has been limited due to relatively slow rates of innovation within the
industry. Consequently, Juniper forecasts that this new sector will
represent under 10% of the global insurance market by 2023, compared to
approximately 4% in 2018.

For more insights, download the free whitepaper: Why
Insurers Must Invest in Insurtech
.

AI Claims Management to Drive Cost Savings

The new research, Insurtech:
Cost Savings, Insurer Readiness & Market Forecasts 2018-2023
,
found that despite still being in early deployment stage, the
introduction of AI in the claims process will generate significant cost
savings. Juniper forecasts that across property, health, life and motor
insurance, the annual cost savings will exceed $1.2 billion by 2023, a
five-fold increase over 2018.

Research author Nick Maynard explained: "AI vendors such as Tractable
are revolutionising claims, demonstrating the potential of AI in claims
management. In a time of stagnating combined ratios, AI has the
potential to make a tremendous difference to insurer's margins."

Progressive Insurers Setting an Example

Juniper's Insurtech Readiness Index analysed leading insurers to
evaluate their readiness scores and ranked the top 20 based on several
metrics, including insurtech offerings, investment and future potential.
The top 5 players leading insurtech transformation were:

1. AXA

2. Allianz

3. Ping An

4. Aviva

5. UnitedHealth

AXA was found to be the clear leader, using insurtech to transform its
operating model at all levels of its operations. While its
transformation programme is not yet complete, the financial resources at
its disposal should ensure it remains a leader in the space.

Juniper Research is acknowledged as the leading analyst house in the
digital commerce and fintech sector, delivering pioneering research into
payments, banking and financial services for over a decade.

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