January 08, 2024

In the last few years, technological innovations have brought significant changes to various sectors of the economy and insurance is no exception.

The complex of modern digital technologies used in insurance is called "InsurTech" (short for "Insurance Technology"). It encompasses the use of modern technologies including machine learning, artificial intelligence, cybersecurity developments, big data analytics, blockchain technology, the use of chatbots, the internet and smartphone applications. The main goal of InsurTech is to improve interaction between insurers and insureds (customers), optimize costs by automating risk management and claim settlement processes.

A good example is telematics in auto insurance, when a device is installed in the car of an insured client, thanks to which it is possible to track driving habits and calculate an individual tariff, which will allow for a more flexible approach to insurance policy.

The global insurance technology market is expected to grow significantly during 2024-2030 at a CAGR of 53% and will reach 152.4 bln. USD. The health insurance market will have the highest growth rate in the coming years as the adoption of InsurTech is significantly higher as compared to other insurance sectors such as property & casualty, motor insurance and others.