Insurance Platform Market

The worldwide insurance platform market is anticipated to grow at a compound annual growth rate (CAGR) of 13.8% over the course of the forecast period, from an estimated USD 81.7 billion in 2023 to USD 156.0 billion by 2028. The increasing popularity of smartphones and other digital devices, which make it easier for consumers to access insurance products, the use of data analytics and artificial intelligence to improve underwriting accuracy and expedite claims processing, and these factors are all major drivers of the growth of digital insurance platforms.

The global insurance platform market is undergoing a transformation driven by technology and changing customer demands. Here are some key emerging trends to watch:

• Focus on Digital Ecosystems and Open Insurance
• Rise of Embedded Insurance
• Hyper-personalization with AI and Advanced Analytics
• Increased Use of Automation and Robotics Process Automation (RPA)
• Growing Importance of Cybersecurity
• Demand for Transparency and Explainable AI (XAI)

These trends highlight a future where insurance platforms are more integrated, customer-centric, and leverage technology to offer innovative, personalized, and efficient insurance solutions.

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Focus on Digital Ecosystems and Open Insurance:

Insurance companies are moving away from siloed operations and embracing digital ecosystems. These platforms connect insurers with other service providers, allowing for the creation of innovative insurance products and a more holistic customer experience. Open insurance, which promotes data sharing with authorized third parties, is also gaining traction, enabling further customization and integration.

Rise of Embedded Insurance:

Imagine buying travel insurance directly when booking a flight, or gadget insurance seamlessly integrated with your phone purchase. Embedded insurance integrates insurance coverage directly into non-insurance products and services, offering a frictionless and convenient experience for customers.

Hyper-personalization with AI and Advanced Analytics:

Leveraging artificial intelligence (AI) and advanced analytics, insurance platforms are becoming adept at personalizing insurance offerings.  This translates to dynamic pricing based on individual risk profiles, tailored coverage options, and proactive risk mitigation strategies.

Increased Use of Automation and Robotics Process Automation (RPA):

Repetitive tasks like claims processing and policy administration are being automated using RPA and AI. This frees up human resources for more complex tasks and improves efficiency, potentially leading to faster claim settlements and reduced operational costs.

Growing Importance of Cybersecurity:

As insurance platforms collect and store increasing amounts of customer data, cybersecurity becomes paramount.  Expect to see platforms invest heavily in robust security measures to protect sensitive information and maintain customer trust.

Demand for Transparency and Explainable AI (XAI):

With increased automation and AI-driven decision making, customers are demanding transparency. XAI tools will be crucial for explaining how AI algorithms arrive at decisions, building trust and ensuring fairness in insurance pricing and claims handling.

Related Reports:

Insurance Platform Market by Offering (Software (Policy Management, Video KYC/eKYC), Services), Application (Claims Management, CRM, Underwriting & Rating), Insurance Type (General Insurance, Life Insurance), End-user and Region - Global Forecast to 2028