The global insurtech market is expected to grow from US$8.07 billion in 2021 to $10.42 billion in 2022, at a compound annual growth rate (CAGR) of 29.2 per cent – worth $29.75 billion by 2026, with a CAGR of 30 per cent.
This growth has been linked to the increase in insurance claims following higher levels of hospitalisations during the Covid-19 pandemic.
Insurtech is used to make the claims process easier, as well as evaluate risk, process contracts and underwrite policies. Therefore, an increased number of claims drives the need for technology that can make the process more effective and efficient for customers and companies, reflected in the forecasted CAGR.
New technologies are also driving change in the insurtech market, with artificial intelligence (AI) being implemented. AI can be used to detect fraud, assess risk and reduce human error in applications.