Insurtech grows, driven by AI and machine learning technologies

​Technology is driving the Insurtech market: according to the report published by Research Dive, global revenues will grow by nearly $58.000 million, registering a compound annual growth rate (CAGR) of 29,1% over the 2021-2028 period. This is a remarkable increase, mainly due to technological advances in the areas of artificial intelligence and machine learning applied to insurance products and services. Analysts predict that the Insurtech market will experience significant growth due to the innovative digital solutions that insurance companies will apply to expand their businesses and create product lines based on niche customer demand.

The market will express demand for increasingly specialized and personalized insurance policies, a trend due to increased user awareness of the benefits of tailored insurance, customized to each person's specific needs.

AI and machine learning will be the most profitable applications, generating about $26.500 million. Artificial intelligence enables insurers to create personalized experiences based on people's preferences and behaviors. Added to this is the growing implementation of machine learning to automate claims processing.

In terms of products, the P&C sector will be the most productive, generating revenues of more than $32.000 million. Risks related to climate change, pandemics, and cybercrime are real and widespread; insurance companies are ready with ad hoc products.

Distribution channel: the broker channel will benefit the most by producing revenues of $24.700 million, driven by growing demand for home, health and auto products.

The Asia-Pacific region, characterized by emerging economies, will offer ample opportunities with an estimated compound growth rate (CAGR) of 30,2%. In addition, insurance companies in this region are expected to turn to digital insurance platforms due to the increasing use of cloud technologies and the rise of internet users in these areas.

Narrowing the focus to Italy, there was 250 million euros of investment in 2022 in the second half of the year, which brings last year's total to 450 million euros. This is a very positive result compared to the 280 million invested in our country at the end of 2021. The Italian Insurtech Association estimates 1000 million euros in new investments by 2023.

Of the 450 million invested in 2022, 250 went to support internal innovation projects within insurance companies, 120 million in collaborations with tech companies and 80 million in innovative startups.