European Insurance Technology Market Expected to Expand by USD 19.72 Billion from 2024-2028, Driven by AI and Rising Natural Hazards

NEW YORK, Oct. 21, 2024 /PRNewswire/ — Report on how AI is driving market transformation- The insurance technology market size in Europe is estimated to grow by USD 19.72 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 36.5% during the forecast period. Increasing need for insurance across european countries due to rising natural hazards is driving market growth, with a trend towards increasing collaborations between investors and insurance technology vendors in Europe. However, high cost of investment in insurance technology poses a challenge. Key market players include Akur8, Alan SA, Anorak Technologies Ltd., Charles Taylor Ltd., Descartes Underwriting SAS, Digital Fineprint Ltd., Duck Creek Technologies LLC, F2X Group Ltd., FRISS, Getsafe Digital GmbH, INZMO Europe GmbH, Majesco, Powszechny Zaklad Ubezpieczen Spolka Akcyjna Group, Qidenus Group GmbH, Qover SA, Quantemplate Technologies Inc., Shift Technology, simplesurance GmbH, wefox Insurance AG, and Xempus AG.

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Market Driver

Investor interest in European insurance technology firms and technology-led insurance start-ups is surging due to the growing importance of insurance technology among insurance companies. In the next decade, the insurance industry is anticipated to transition entirely to digital platforms, eliminating the need for physical intervention. Vendors in the insurance technology sector are prioritizing consumer demand for customized insurance products and personalized services. Insurance technology facilitates tailored coverage for individuals, and the trend of purchasing insurance online is gaining traction in Europe. These factors have resulted in a rise in investor collaborations with insurance technology companies, which is expected to fuel the growth of the European insurance technology market during the forecast period. 

The European Insurance Technology market is experiencing a turning point with enterprise value reaching new heights. Venture capitalist investments in Insurtechs like Clark, Coya, Luko, GetSafe, SimpleInsurance, and others, have grown, with seed stage funding from unnamed family offices and Earlybird. Insurers are embracing Insurtechs through venture client models, investing in generative AI companies like Shift Technology, Tractable, Photocert, Mitiga, and Spotr. Traditional incumbents collaborate with B2C and B2B Insurtechs, using digital channels for faster processes and claims notifications. Premium growth and digital transformation drive the Insurance industry, with trends including augmented and virtual reality. Managing general agents and corporations also join the scene, seeking value propositions from Insurtechs. 

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Market Challenges

• Insurance technology adoption in Europe presents challenges for firms in countries such as Germany, France, and Italy. High costs and the need for specialized training are major obstacles. Integration of technology with banks and brokers is ongoing, but managing these systems effectively requires technical expertise. Delaying technological investments can lead to business risks and loss of competitive edge. Start-ups and vendors face uncertainties in research projects, commercialization, and return on investment. The high cost of investment may hinder the growth of the insurance technology market in Europe during the forecast period. Insurance companies must invest in retraining employees, hiring trainers, and managing integration systems to stay competitive. Despite these challenges, the potential benefits of insurance technology, such as improved customer experience and operational efficiency, make it a worthwhile investment for the industry.
• The European Insurance Technology market is experiencing significant change as insurers seek to drive premium growth through digital transformation. Technology trends such as digital channels, claims notifications, and risk analysis are disrupting the industry. Insurtechs are gaining ground with their fast processes and innovative value propositions, challenging traditional incumbents. B2C and B2B insurtechs, managing general agents, tech companies, and fintechs are all vying for a piece of the action. Investment flows and funding volumes are on the rise, with tech companies and investors showing interest. Valuations are soaring on Nasdaq, reflecting the momentum in this space. The insurance industry ecosystem is evolving into a symbiotic relationship, with start-ups and ecosystems and networks offering combined value in healthcare, repairs and maintenance, and risk management. Customer demand for contextual data and prevention services is driving the need for more sophisticated risk analysis and replacement services. The availability of data and the performance of insurtechs will be key factors in determining the success of this dynamic industry.

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Segment Overview

This insurance technology market in Europe report extensively covers market segmentation by

1. Type

• 1.1 Solution
• 1.2 Service

• 2.1 Cloud computing
• 2.2 IoT
• 2.3 Big data and business analytics
• 2.4 Blockchain
• 2.5 Others

• 3.1 Europe

1.1 Solution- The European insurance technology market is experiencing significant growth due to the digital transformation of the insurance industry. Traditional methods are being replaced with customer-centric solutions, as insurers in both developing and mature markets move new and existing policies to digital platforms. Insurers are developing new products to meet evolving customer needs and prioritizing transparency. Effective data and risk management are crucial for underwriting accuracy and loss prediction, which InsurTech platforms facilitate. This leads to increased operational efficiency and product innovation, driving the growth of the insurance technology market in Europe.

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Research Analysis

The European Insurance Technology (Insurtech) market is experiencing significant growth, driven by the digital transformation of the insurance industry. Insurtechs are disrupting traditional insurance business models with innovative solutions that leverage technology trends such as digital channels, generative AI, and contextual data. These companies offer value-added services like claims notifications, risk analysis, prevention, replacement services, and healthcare platforms. Insurers are increasingly investing in insurtechs to enhance their offerings and remain competitive. Some innovative insurtechs include Shift Technology, Tractable, Photocert, Mitiga, and Spotr. Service companies are also integrating insurtech solutions to provide combined value to insurance clients. Venture client models and augmented/virtual reality technologies are also gaining traction in the market. Overall, the European Insurtech market is poised for continued growth as insurers seek to leverage technology to improve customer experience and operational efficiency.

Market Research Overview

The European Insurance Technology market is experiencing significant growth, driven by the digital transformation of the insurance industry. Traditional incumbents and innovative insurtechs are embracing technology trends such as digital channels, claims notifications, and risk analysis to enhance customer experience and streamline processes. Insurtechs are disrupting the market with their value proposition of fast processes and contextual data, leading to increased B2C and B2B demand. Investment flows into insurtechs have been great, with funding volumes reaching new heights. Tech companies, venture capitalists, and even unnamed family offices have shown interest, with valuations soaring on Nasdaq and other exchanges. Insurtechs are focusing on areas such as risk prevention, replacement services, and healthcare platforms. The insurance industry ecosystem is witnessing a symbiotic relationship between insurtechs and traditional insurers. Managing general agents and start-ups are collaborating to offer combined value to customers. Insurtech investments in areas like generative AI, augmented reality, and virtual reality are gaining momentum. Performance is a key focus, with insurtechs offering contextual data and innovative solutions for repairs and maintenance, risk management, and claims processing. The availability of data is driving the industry forward, with insurtechs and service companies leveraging technology to provide innovative solutions. Insurtech investments in Europe are expected to reach a turning point, with venture capitalist investments in seed stage and Series A startups on the rise. Key players include Clark, Coya, Luko, GetSafe, SimpleInsurance, and Thinksurance, among others. Tractable, Shift Technology, Photocert, Mitiga, and Spotr are some of the tech companies making waves in the industry. The traditional insurance industry is recognizing the importance of insurtechs and is adapting to the changing landscape. The industry is witnessing a shift towards venture client models and collaboration with insurtechs to stay competitive. The future of the European Insurance Technology market looks bright, with continued innovation and disruption expected.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• Solution
• Service
• Technology
• Cloud Computing
• IoT
• Big Data And Business Analytics
• Blockchain
• Others
• Geography
• Europe

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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Email: media@technavio.com
Website: www.technavio.com/

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SOURCE Technavio