Market Size of North America Insurtech Industry
Study Period | 2020 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 4 Billion |
Market Size (2029) | USD 5.90 Billion |
CAGR (2024 - 2029) | 8.10 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
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North America Insurtech Market Analysis
The North America Insurtech Market size is estimated at USD 4 billion in 2024, and is expected to reach USD 5.90 billion by 2029, growing at a CAGR of 8.10% during the forecast period (2024-2029).
Insurtech is likely to play a vital, ongoing role in bringing digital innovation to the insurance sector overall. The adoption of digital is impacting the insurance industry, with consumers preferring online channels for fulfilling their insurance needs. With digital brokerage and insurance marketplaces for clients, Insurtech businesses are working on reducing the gaps between customers and insurance providers. Because of the oversaturation of the insurance market and fierce competition among insurers, they have been pushed to incorporate digital technologies that focus on the client interface. The flexibility and customization of various insurance products such as health, property, life insurance, and others encourage people to choose among the best plans. It's been growing in the North American region at the fastest pace. However, there is still scope for growth.
Insurance companies are encouraged by the carriers choosing to stay the course with their insurance providers and even speed things up. Insurance Industry has made well pedestrians in the Health, Motor, and other Insurance; also, other segments, including property and crop insurance, have scope for more penetration. However, while carriers are committed to the innovative projects and insurtech partners, they're already involved with; they are less likely to take risks on new, unknown insurtech companies.
For new B2B insurtechs trying to build relationships and get a foot in the door with potential customers, it's likely to be a highly challenging business environment and an unbalanced market in the near term. As the Insurtech landscape evolved, many players seemed to be pushing the limits of product innovation, offering newer value-added services, and expanding rapidly to build large eco-system plays.
COVID-19 had negatively impacted the insurtech industry across North America, the insurance industry, the technology platforms, and other industries. But, there was a rise in touchless experiences to increase safety. This coronavirus pandemic prompted a significant increase in the prioritization of technology initiatives, leading to an urgency around deploying digital solutions at insurers in North American countries.
North America Insurtech Industry Segmentation
The North America Insurtech Market is one of the fastest growing Insurtech Industries as businesses, and individual entities are more preferring digitized and safe products for their tech-driven data for their insurance and other financial activities. A complete background analysis of the North America Insurtech Market, which includes an assessment of the economy, market overview, market size estimation for key segments, emerging trends in the market, market dynamics, and key company profiles are covered in the report. The North America Insurtech Market is segmented By Line of Insurance (Property and Casualty Insurance, Health Insurance, Life Insurance, and Others ), By Business Model (Enabler, Carrier, and Distributor), and By Country (United States, Canada). The report offers Market size and forecasts for North America Insurtech Market in value (USD ) for all the above segments.
By Line of Insurance | |
Property and Casualty Insurance | |
Health Insurance | |
Life Insurance |
By Business Model | |
Enabler | |
Carrier | |
Distributor |
By Country | |
United States | |
Canada |
North America Insurtech Market Size Summary
The North America Insurtech market is poised for significant growth, driven by the increasing adoption of digital technologies within the insurance sector. As consumers increasingly prefer online channels for their insurance needs, insurtech companies are bridging the gap between customers and providers through digital brokerage and insurance marketplaces. This shift is further fueled by the oversaturation of the insurance market and intense competition, prompting insurers to enhance client interfaces with digital solutions. The flexibility and customization of insurance products, such as health, property, and life insurance, are attracting more consumers, contributing to the rapid growth of insurtech in the region. Despite the challenges posed by the COVID-19 pandemic, which initially impacted the industry, there has been a notable shift towards touchless experiences and expedited technology initiatives, further accelerating the digital transformation of insurance services.
The competitive landscape of the North America Insurtech market is characterized by a high degree of fragmentation, with numerous international and regional players vying for market share. Private capital investment in insurtech has reached new heights, with North America witnessing the largest share of funding transactions globally. This influx of investment is driving the development of smarter, more efficient insurance products and services, as incumbents strive to compete with emerging insurtech firms. Key players in the market are engaging in strategic initiatives such as mergers, acquisitions, and partnerships to enhance their product offerings and expand their market presence. Companies like Lemonade, Gusto, Oscar Health, Sureify, and Planck are at the forefront of this transformation, leveraging technological advancements to gain a competitive edge. The ongoing demand for end-to-end digital financial solutions is expected to sustain the growth trajectory of the insurtech market in North America throughout the forecast period.
North America Insurtech Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Market Drivers
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1.3 Market Restraints
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1.4 Industry Attractiveness - Porter's Five Forces Analysis
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1.4.1 Threat of New Entrants
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1.4.2 Bargaining Power of Buyers
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1.4.3 Bargaining Power of Suppliers
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1.4.4 Threat of Substitutes
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1.4.5 Intensity of Competitive Rivalry
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1.5 Insights on Various Regulatory Trends Shaping the Insurtech Market
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1.6 Insights on Recent Trends and Innovations in the North America Insurtech Market
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1.7 Insights on Investment Trends Within Insurtech Space in North America
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1.8 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Line of Insurance
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2.1.1 Property and Casualty Insurance
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2.1.2 Health Insurance
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2.1.3 Life Insurance
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2.2 By Business Model
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2.2.1 Enabler
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2.2.2 Carrier
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2.2.3 Distributor
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2.3 By Country
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2.3.1 United States
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2.3.2 Canada
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North America Insurtech Market Size FAQs
How big is the North America Insurtech Market?
The North America Insurtech Market size is expected to reach USD 4 billion in 2024 and grow at a CAGR of 8.10% to reach USD 5.90 billion by 2029.
What is the current North America Insurtech Market size?
In 2024, the North America Insurtech Market size is expected to reach USD 4 billion.