What Fueled The Previous Growth In The Online Insurance Market?
The online insurance market has seen considerable growth due to a variety of factors.
• The online insurance market has expanded rapidly in recent years. It will grow from $98.76 billion in 2024 to $121.68 billion in 2025, with a compound annual growth rate (CAGR) of 23.2%.
The growth is attributed to digitalization, reduced operational costs, discounts on premiums, high internet penetration, and the transition from traditional to online insurance services.
How Does the Forecast Look for the Online Insurance Market?
The online insurance market is expected to maintain its strong growth trajectory in upcoming years.
• The online insurance market is expected to grow exponentially, reaching $276.84 billion by 2029 with a CAGR of 22.8%.
The growth is attributed to increased mobile and internet usage, the convenience of purchasing insurance online, and growing awareness of health coverage benefits. Key trends include IoT technology adoption, demand for customized insurance products, mobile app and AI technologies, a shift to consumer-centric strategies, and InsurTech adoption.
What Are The Leading Drivers Of Growth In The Online Insurance Market?
The anticipated rise in health insurance coverage is predicted to boost the expansion of the online insurance market. Healthcare insurance coverage pertains to a policy where an insurance company commits to cover a portion or all of an individual's medical expenses in return for a premium. This expansion in health insurance coverage is propelled by enlarged government schemes, grants, and amplified public consciousness about healthcare's significance due to recent health emergencies. Leaning towards online insurance platforms for health insurance coverage provides benefits like prompt policy comparisons, simplified application proceedings, and superior user accessibilities. For instance, the Bureau of the Census, a government agency within the US, reported that in 2022, roughly 92.1% of the population, which equates to 304.0 million individuals, claimed health insurance at some point in the year. This is an escalation in both the insured percentage and the count of insured individuals compared to 2021, where 91.7%, or 300.9 million individuals, had insurance. Hence, the rise in health insurance coverage is a major contributor to the upsurge of the online insurance market.
How Are The Segments Defined Within The Global Online Insurance Market?
The online insurance market covered in this report is segmented –
1) By Type: Life Insurance, Non-Life Insurance
2) By Tenure: Less Than 1 Year, 10 Years, 10-20 Years, 20-30 Years, More Than 30 Years
3) By Enterprise Size: Large Enterprises, Small And Medium-Sized Enterprises (SMEs)
4) By Application: Individual, Institution, Other Applications
5) By End User: Insurance Companies, Aggregators, Third Party Administrators And Brokers
Subsegments:
1) By Life Insurance: Term Life Insurance, Whole Life Insurance, Endowment Plans, Universal Life Insurance, Variable Life Insurance, Health Insurance, Critical Illness Insurance, Accidental Death And Dismemberment (AD And D) Insurance, Retirement And Pension Plans
2) By Non-Life Insurance: Auto Insurance, Property Insurance (Home, Renters), Travel Insurance, Liability Insurance, Marine Insurance, Business Insurance, Health Insurance (Under Non-Life), Pet Insurance, Crop Insurance, Commercial Insurance, Fire Insurance
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How Are Emerging Trends Reshaping The Dynamics Of The Online Insurance Market?
Leading firms in the online insurance sector are honing their competitive advantage by creating innovative tools such as AI-powered chatbots for insurance resolution. An AI-powered chatbot for insurance resolution is a high-tech software application that employs artificial intelligence to support policyholders and plaintiffs throughout the claims resolution process. For example, in February 2022, Policybazaar, a leading insurance aggregator firm from India, introduced an AI-enabled WhatsApp chatbot to automate and speed up the claims resolution process for all of their business clients. This feature aims to offer smooth support for claims notification and resolution via WhatsApp for all employees and their dependents enrolled in the program. Subscribers to this service can use WhatsApp to interact with the claims support bot.
Who Are the Key Players In The Online Insurance Market?
Major companies operating in the online insurance market are:
• China Ping An Insurance (Group) Co. Ltd.
• Allianz SE
• China Life Insurance Company
• Axa S.A.
• Reliance Nippon Life Insurance Company Limited
• The Dai-ichi Life Insurance Company Limited
• MetLife Services and Solutions LLC
• Assicurazioni Generali SpA
• China Pacific Insurance Co. Ltd.
• Nationwide Mutual Insurance Company
• American International Group Inc.
• Allstate Insurance Company
• Zurich Insurance Group Ltd.
• Sumitomo Life Insurance Company
• Aviva PLC
• Aegon Life Insurance Company
• SBI Life Insurance Co. Ltd.
• Pacific Life Insurance Company
• Bright House Financial Inc.
• Transamerica Corporation
• Voya Financial Inc.
• Globe Life Inc.
• Symetra Life Insurance Company
• Protective Insurance Corporation
• Colonial Penn Life Insurance Company
• Bestow Inc.
• Gerber Life Insurance Company
• HDFC Standard Life Insurance Company Limited
What Is The Most Dominant Region In The Online Insurance Market?
North America was the largest region in the online insurance market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the online insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
