The "US Insurance Distribution Technology Market: Analysis By Function, By Application, By Technology Type, By End-User Size and Trends - Forecast up to 2029" report has been added to ResearchAndMarkets.com's offering.
The US insurance distribution market was valued at US$210.37 billion in 2023 and is expected to reach US$337.26 billion by 2029. On the other hand, the US insurance distribution technology market in 2023 was valued at US$20.44 billion. The market is projected to reach US$50.70 billion by 2029.
The US region offers strong growth potential to the insurance distribution technology market. Insurance technology firms have been showing significant growth in the areas of auto, homeownership, and cyber insurance. Such strong growth would stimulate traditional insurers to either acquire technology capabilities or partner with InsurTech companies. With an increasing 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 tech culture.
The US insurance distribution market is expected to grow at a CAGR of 8.24%. Whereas, the US insurance distribution technology market is set to grow at a CAGR of 16.4% during the forecast period of 2024-2029.
Market Segmentation Analysis:
By Application: Property and casualty (P&C) held the highest share in the market. The US property and casualty (P&C) insurance distribution market is expected to witness significant growth in the forthcoming years due to the rising use of technology and analytics to align products and pricing with consumer preferences, increasing spending on advertising P&C products, and the growing popularity of SaaS solutions.
By Segment: Commercial is expected to be the fastest-growing segment in the forecasted period. The combination of human and digital talent has driven the growth of commercial insurance distribution in the US. Whether in the form of APIs, push notifications, portal interoperability, advanced visualizations of deal financials, and scalable/self-learning models, tech is a key catalyst for improvement. Organizations that adapt fastest to these evolving distribution models have experienced rapid growth and margin improvements in the past few years.
By Technology Type: Cloud computing held the major share in the market. The growth is expected to increase as cloud computing is a valuable delivery model that insurers can use to facilitate or accelerate business transformation. Moreover, cloud computing has a huge impact on the insurance industry, with benefits for internal processes, new customer acquisition, and building policyholders' loyalty.
By End-user: BFSI held the highest share in the market, whereas the healthcare segment is anticipated to grow at the highest CAGR during the forecasted period. The growth can be attributed to the widespread use of the platform and peer-to-peer business models and lower insurance premium rates leading to a rise in the number of policymakers.
The US Insurance Distribution Technology Market Dynamics:
Growth Drivers: One of the most important factors impacting insurance distribution technology market dynamics is the increasing use of mobile technology and applications. By using mobile app technology, the insurance distributors can now easily reach out to their tech-savvy customers. These apps are extremely useful and viewed as invaluable assets when it comes to claims.
They are capable of capturing and transferring data quickly, making the process hassle-free and expediting the complete insurance-related claims process. Furthermore, the market has been growing over the past few years, due to factors such as soaring urban population, rising millennial population, rise in the use of internet to buy insurance products, integration of artificial intelligence (AI) with insurance, etc.
Challenges: However, the market has been confronted with some challenges specifically, security concerns, infrastructure bottlenecks, etc.
Trends: The market is projected to grow at a fast pace during the forecast period, due to various latest trends such as increasing use of social media as a distribution channel, rising personalization trend, growing adoption of telematics, rising penetration of cloud-based insurance technology services, escalating demand for digital self-service, collaboration with bigtechs, surging popularity of virtual insurance advisor, emergence of subscription models, growing adoption of connected insurance, increasing use of blockchain in insurance, rising popularity of gamification in 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 data of users, improving underwriting with greater accuracy and efficiency. Therefore, it is expected that the growing adoption of telematics would further provide significant opportunities to the IT sector by making insurance distribution more efficient, and better coordinated.
Competitive Landscape:
The US insurance distribution technology market is fragmented in nature, owing to the presence of a large number of small businesses catering to the demands of life and non-life insurance sectors.
The key players of the US insurance distribution technology market include:
- GoHealth
- Brown & Brown, Inc. (Coverhound)
- Goosehead Insurance
- Porch Group
- Clover Health Investments
- MediaAlpha
- Oscar Health
- Lemonade
- Hippo Holdings Inc. (Hippo Insurance Services)
Key Topics Covered:
1. Executive Summary
2. Introduction
2.1 Insurance Distribution Technology Overview
2.2 Insurance Distribution Segmentation Overview
2.3 Insurance Distribution Technology Segmentation Overview
3. The US Market Analysis
3.1 The US Insurance Distribution Market Analysis
3.2 The US Insurance Distribution Market Application Analysis
3.3 The US Insurance Distribution Market Segment Analysis
3.4 The US Insurance Distribution Technology Market Analysis
3.5 The US Insurance Distribution Technology Market Function Analysis
3.6 The US Insurance Distribution Technology Market Technology Type Analysis
3.7 The US Insurance Distribution Technology Market End-User Analysis
4. Impact of COVID-19
5. Market Dynamics
5.1 Growth Driver
5.1.1 Soaring Urban Population
5.1.2 Rising Millennial Population
5.1.3 Rise in the Use of Internet to Buy Insurance Products
5.1.4 Increasing Use of Mobile Technology and Applications (Apps)
5.1.5 Integration of Artificial Intelligence (AI) with Insurance
5.2 Challenges
5.2.1 Security Concerns
5.2.2 Infrastructure Bottlenecks
5.3 Market Trends
5.3.1 Increasing Use of Social Media as a Distribution Channel
5.3.2 Rising Personalization Trend
5.3.3 Growing Adoption of Telematics
5.3.4 Rising Penetration of Cloud-based Insurance Technology Services
5.3.5 Escalating Demand for Digital Self-Service
5.3.6 Collaboration with BigTechs
5.3.7 Surging 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 Rising Popularity of Gamification in Insurance Industry
6. Competitive Landscape
6.1 The US Insurance Distribution Technology Market Players by Business Models
7. Company Profiles
- GoHealth, Inc.
- Brown & Brown, Inc. (Coverhound)
- Goosehead Insurance, Inc.
- Porch Group, Inc.
- Clover Health Investments, Corp.
- MediaAlpha, Inc.
- Oscar Health, Inc.
- Lemonade Inc.
- Hippo Holdings Inc. (Hippo Insurance Services)
- Root Inc.
For more information about this report visit https://www.researchandmarkets.com/r/6mmdjg
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