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Banking & Financial Institution Industry > Insurance

Insurance

Insurance: Embracing Digitalization and Consumer-Centric Models

The global insurance market, valued at $5.7 trillion in 2023, is undergoing a digital transformation. The shift toward insurtech — leveraging AI, big data, and IoT to deliver personalized, on-demand insurance services — is revolutionizing the industry. According to Allianz Global Investors, the global insurtech market is expected to grow at a CAGR of 18.5%, reaching $1,700 billion by 2030. The rise of usage-based insurance models, digital claims processing, and blockchain-backed policies are helping insurers become more agile and customer-centric.

The COVID-19 pandemic accelerated the digitalization of the insurance sector, with an increasing number of customers turning to online platforms for purchasing policies and filing claims. Moreover, parametric insurance — which uses data and algorithms to trigger claims based on predefined parameters (e.g., weather patterns) — is rapidly gaining traction, particularly in emerging markets.

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