The life and health insurance sectors are leading insurtech market share as new solutions connect brokers, providers and carriers, driven by growing health concerns and as insurers migrate to digital platforms, Future Market Insights (FMI) says.

The insurtech market will have compound annual growth of 26% to reach a net worth of US$165.4 billion ($238.3 billion) in 2032, FMI’s Insurtech Market Outlook report forecasts, up from US$16.6 billion ($23.92 billion) now.

Over the projection period, Asia Pacific is expected to be the fastest-growing insurtech market and DXC Technology Company – which this year signed a multi-year agreement to transform Lloyd’s digital capabilities – and Trov Insurance Solutions were among firms named as “major players” in global insurtech. Recently-acquired Trov was backed by Suncorp, Munich Re Ventures and Sompo Insurance and created Suncorp’s telematic-backed Bingle Go motor cover.

FMI says sales of insurtech solutions “grew immensely” during the covid pandemic as insurers increased use of drones, mobile applications and catastrophe models, and as remote working increased digitalisation throughout insurance.

FMI also says the emergence of a number of small and regional players operating in categories such as insurtech car or home insurance has “fragmented the market,” making it highly competitive.

Most key insurance players are establishing insurtech partnerships and collaborations, and insurers had to adopt new technology as their peers went online.

“Rapid digitisation of all major service sectors of economy has shifted the business model of insurance providing companies across the globe,” the report says.

“Addition of professional and consulting services to the potential customers over online platforms have necessitated the integration of insurance technology solutions, further propelling growth of the global insurtech market.”

The insurtech solution segment is now growing at a faster rate than the insurtech service segment, with compound growth of nearly 26% forecast for the coming decade.

“The rising demand for insurtech solutions in growing nations, particularly emerging economies such as Australia, China, India, Singapore and South Korea, provides considerable prospects for the sales of insurtech solutions to expand and develop the overall insurtech market,” the report said.