Digital Insurance Market to grow at a CAGR of 12.8% during 2024-2028
The Digital Insurance Market is expected to grow at a CAGR of 12.8% during 2023 and 2028. During this period, the market is also expected to show a growth of USD 67226.8 million. The digital insurance market is experiencing a notable transition, driven by the increasing adoption of low-code and no-code (LCNC) development platforms. These innovative tools enable users to construct applications through graphical interfaces and configuration, as opposed to the conventional method of coding. The resulting simplification of the application development process offers several advantages, including reduced complexity, decreased development time and costs, and expanded opportunities for professionals to contribute. With intuitive drag-and-drop interfaces, LCNC platforms empower individuals with minimal coding knowledge to develop applications, thereby accelerating deployment of new customer portals and apps within the insurance sector. The diminished reliance on specialized programming skills broadens the talent pool, fostering a more agile and innovative work environment.
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Technavio analysts predict that the Direct sales subsegment will lead the Distribution Channel segment during 2024 and 2028 The digital insurance market has undergone a transformative shift with the emergence of the direct-to-consumer (DTC) model, eliminating the reliance on intermediaries such as brokers and third-party agents. This business model enables insurers to sell insurance products directly to consumers through digital platforms, fostering seamless interactions. The DTC model's advantages are manifold, including cost efficiency. By eliminating intermediaries, insurers can significantly reduce commission fees, resulting in substantial savings. This streamlined approach not only benefits insurers but also empowers consumers with more accessible and affordable insurance solutions.
Here are the various ways based on which the market is segmented:
There are several factors that are causing the market to flourish increase in number of insurance policies
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The digital capabilities of insurers are at the forefront of the insurance industry's transformation, with core system modernization and technology adoption being key priorities. This shift is driven by the need to enhance customer experience, foster diversity, and adapt to the changing workforce. Embedded insurance solutions are gaining popularity in areas like long-term care, employee benefits, and financial health. Advanced technology, such as AI and parametric insurance, is being leveraged to manage claims, underwrite risks, and mitigate protection gaps during catastrophic events. InsurTechs are driving innovation in risk management, financial safety nets, and even cybercrime protection. However, digital transformation in the insurance industry is not without challenges. Macroeconomic factors like inflation and company culture can hinder transformation efforts. Purpose-driven decisions and a customer-centric business model are essential to navigate these challenges and maintain financial health. As the industry continues to evolve, insurers must stay agile and adapt to new risks and opportunities. By embracing digital transformation, they can provide better protection, improve customer experience, and create new revenue streams.
The global diversified support services market encompasses businesses offering labor-intensive services to corporations and governments. This sector comprises companies providing commercial cleaning, dining and catering, equipment repair, industrial maintenance, auctioneering, storage and warehousing, transaction services, uniform rental, and other business support solutions. According to Technavio, the market size is determined by the consolidated revenue generated by firms operating in commercial printing, environmental and facilities services, office services and supplies, security and alarm services, and diversified support services. The market's expansion will be fueled by the growing outsourcing trend, as businesses increasingly delegate their support functions to specialized service providers.
The Digital Insurance Market is experiencing significant growth, fueled by the increase in number of insurance policies. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.
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Technavio Research
Jesse Maida
Media & Marketing Executive
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Email: media@technavio.com
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