Juniper Research: Insurtech Platform Premiums to Exceed $556 Billion Globally in 2025, as AI Drives Market Transformation
Summary
BASINGSTOKE, England--(BUSINESS WIRE)--A new study by Juniper Research has found the total value of premiums generated by insurtech platforms – platforms with technology supporting insurance at the heart of their design – will exceed $556 billion in 2025, from $250 billion in 2020; growing by 123%. It predicts that insurers in the motor, life, home and health industries risk becoming less attractive to potential customers if they fail to capitalise on the benefits that AI underwriting systems bring. The report identified that weakened customer loyalty, and the driving down of premiums by increased competition and the shift to digital will cause seismic change in insurance over the next five years. It recommends that large insurers focus on using insurtech solutions to improve customer interactions by creating data-driven models, or lose market share to newer, digitally-native vendors. Ping An is set to invest $1 billion per year in insurtech, demonstrating commitment to the approach.