Dublin, June 6, 2022 (GLOBE NEWSWIRE) — The “The US Insurance Distribution Technology Market: Analysis by Function, by Application, by Technology Type, by End User Size, and Trends with COVID-19 Impact and Forecast to 2026” Report has been added to ResearchAndMarkets.com offering.
The US insurance distribution technology market was valued at US$181.37 billion in 2021 and is expected to reach US$261.59 billion in 2026.
Insurance distribution technologies are primarily focused on improving the efficiency of the existing model of the insurance industry. These technologies are also focusing on improving customer communications and capabilities to implement process automation.
The US region offers strong growth potential for the insurance distribution technology market. Insurance technology firms have shown significant growth in the areas of auto, homeownership and cyber insurance. Such strong growth would encourage traditional insurers to acquire technological capabilities or partner with InsurTech companies.
With a growing demand for innovative products and services from millennials, such collaboration would become a critical imperative. Due to such collaborations, traditional insurers would benefit from faster results in establishing a technological culture. The US Insurance Distribution Technology Market is anticipated to rise at a CAGR of 7.60% during the forecast period of 2022-2026.
Market segmentation analysis:
In 2021, the commission segment led the insurance distribution technology market, accounting for around 40% market share. The commission segment is expected to experience high growth. The increasing penetration of digital and telesales models is expected to increase the broker’s commission share. Most of the growth for integrated dealers is also expected to come from the automotive and individual health and Medicare markets, both of which have a growing digital aspect.
The US advertising insurance delivery technology market can be divided into five applications: auto, health, life, home, and SME commercial P&C. The US home advertising market is expected to grow significantly during the forecast period, due to the increasing development of back-end call centers in home insurance markets, the increasing use of mobile devices connected to streamline processes, etc.
Cloud computing took most of the market. The cloud computing market is forecast to grow at a CAGR of 26.8% during the year 2022-2026. Growth is expected to increase as cloud computing is a valuable delivery model that insurers can use to facilitate or accelerate business transformation. In addition, cloud computing has a great impact on the insurance industry, with benefits for internal processes, the acquisition of new clients and the retention of policyholders.
Manufacturing, Transportation, Government, Health, Retail and Others. The health care segment is forecast to grow at the highest CAGR of 19.7% over the forecast period. The growth can be attributed to widespread use of the platform and peer-to-peer business models and lower insurance premium rates leading to an increase in the number of policymakers.
The dynamics of the US insurance distribution technology market:
Growth Drivers: One of the most important factors affecting the dynamics of the insurance distribution technology market is the increasing use of mobile technology and applications. Through the use of mobile app technology, insurance distributors can now easily communicate with their tech-savvy customers. These apps are extremely helpful and are considered invaluable assets when it comes to claims. They are capable of quickly capturing and transferring data, making the process easier and speeding up the entire insurance claims process. In addition, the market has been growing in recent years, due to factors such as the increase in the urban population, the increase in the millennial population, the increase in the use of the Internet to purchase insurance products, the integration of artificial intelligence (AI ) with insurance, etc.
Challenges: However, the market has faced some challenges specifically, security issues, infrastructure bottlenecks, etc.
Trends: The market is anticipated to grow at a rapid rate during the forecast period owing to several of the latest trends, such as the increasing use of social media as a distribution channel, the rising trend of personalization, the increasing adoption of telematics, the growing penetration of cloud-based insurance. technology services, growing demand for digital self-service, collaboration with bigtechs, growing popularity of virtual insurance advisor, emergence of subscription models, growing adoption of connected insurance, increased use of blockchain in insurance, growing popularity of gamification in the insurance industry , etc.
Telematics refers to devices that merge telecommunications and information technology. With the proliferation of smartphones in the US, telematics has become a convenient method of data collection, with the ability to analyze information and compare user data, improving underwriting with greater accuracy and efficiency. Therefore, the growing adoption of telematics is expected to bring even more significant opportunities to the IT sector by making insurance distribution more efficient and better coordinated.
COVID-19 impact analysis and way forward:
The growth of the US insurance distribution technology market was positively influenced by the COVID-19 pandemic. The COVID-19 pandemic is forcing nearly every organization to accelerate their digital transformation priorities. When it comes to the insurance distribution technology industry, the most significant change is the growing interest during the pandemic in digital products that are more dynamic. This change would lead to much higher levels of personalization and thus change the customer experience and value proposition. In the post-COVID era, insurers should explore technologies such as virtual reality, augmented reality, and virtual tour solutions to facilitate virtual sales and broker enablement.
The US insurance distribution technology market is fragmented by nature, due to the presence of a large number of small companies serving the demands of the life and non-life insurance sectors.
Some of the strategies among the key players in the insurance distribution technology market are partnerships, mergers, acquisitions, and collaborations. For example, Lemonade entered into an agreement in 2021 to acquire Metromile (the data science company focused on auto insurance).
Whereas, GoHealth has invested in multiple sectors such as HRTech, Employer Insurance, Employee Health IT and more. MediaAlpha is one of the largest digital aggregator companies in the market. While companies like GoHealth, Goosehead and Porch are integrated distributors.
The insurance distribution technology firm’s ability to promote innovation in the insurance industry by generating new products would help insurance companies meet the changing needs of their customers. As a result, several insurance distribution technology companies are gaining momentum by offering a new and diverse set of services.
The key players in the US insurance distribution technology market are:
Brown & Brown, Inc. (hound)
Goosehead Insurance, Inc.
porch group, inc.
Clover Health Investments, Corp.
Oscar’s Health, Inc.
Hippo Holdings Inc. (Hippo Insurance Services)
Key Topics Covered:
1. Executive Summary
2.1 Insurance Distribution Technology: An Overview
2.1.1 Introduction to Insurance Distribution
2.1.2 Introduction to Insurance Distribution Technology
2.2 Insurance Distribution Segmentation – An Overview
2.2.1 Insurance distribution segmentation
2.3 Insurance Distribution Technology Segmentation – An Overview
2.3.1 Insurance Distribution Technology Segmentation
3. Analysis of the US market
3.1 The US Insurance Distribution Market: An Analysis
3.2 The US Insurance Distribution Market – Application Analysis
3.3 US Insurance Distribution Market – Segment Analysis
3.4 The US Insurance Distribution Technology Market – An Analysis
3.5 US Insurance Distribution Technology Market – Feature Analysis
3.6 US Insurance Distribution Technology Market – Technology Type Analysis
3.7 US Insurance Distribution Technology Market – End User Analysis
4. Impact of COVID-19
4.1 Impact of COVID-19 on the insurance industry
4.1.1 Impact of COVID-19 on the insurance industry
4.2 COVID-19’s impact on the Insurance Technology industry
4.2.1 COVID-19’s impact on the Insurance Technology industry
5. Market dynamics
5.1 Engine of growth
5.1.1 Urban population on the rise
5.1.2 Millennial population on the rise
5.1.3 Increased use of the Internet to purchase insurance products
5.1.4 Increasing use of technology and mobile applications (Apps)
5.1.5 Integration of Artificial Intelligence (AI) with Insurance
5.2.1 Security issues
5.2.2 Infrastructure bottlenecks
5.3 Market trends
5.3.1 Increased use of social networks as a distribution channel
5.3.2 Upward trend of personalization
5.3.3 Growing adoption of telematics
5.3.4 Increasing penetration of cloud-based insurance technology services
5.3.5 Increased demand for digital self-service
5.3.6 Collaboration with BigTechs
5.3.7 Growing popularity of Virtual Insurance Advisor
5.3.8 Emergence of subscription models
5.3.9 Growing adoption of connected insurance
5.3.10 Increasing use of Blockchain in insurance
5.3.11 Increasing popularity of gamification in the insurance industry
6. Competitive landscape
6.1 US Insurance Distribution Technology Market Players by Business Models
7. Company profiles
7.1 General description of the business
7.2 Operating Segment
7.3 Business strategy
For more information on this report, visit https://www.researchandmarkets.com/r/qvs2bo
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