IoT Insurance Market

Global IoT Insurance Market Size & Growth (2023 – 2028)

The global IoT insurance market is supposed to be worth $ 142.76 billion by 2028, with a whopping CAGR of 65.89% during the conjecture period 2023 to 2028.

Insurers partner with companies to provide the latest cross-industry products and services that leverage IoT technologies, which in turn can deliver several benefits, such as frequent customer interactions using telematics applications. Insurance companies, with the help of IoT, can develop new business models, by monitoring customer behavior patterns related to driving, fitness, etc., so that various companies health and auto insurance can inspire customers to recognize the achievement of their goal. This can improve the relationship between the customer and the business, which is a key factor for any insurance company.

Internet of Things (IoT) insurance has transformed the insurance industry, giving customers access to options with a variety of products. You improve customer relationships, gain an accurate understanding of your customer and their changing needs. Thus, as a result, the insurance model improves and the demand for new related technologies increases.

Recent Developments:

• In April 2019, Roost announced its plans to collaborate with the IoT Insurance Observatory member group. Roost, leader in home telematics for property insurers. The goal of this collaboration is to see the smart home as one of the most relevant opportunities to leverage IoT data in insurance.
• In September 2018, Munich acquired Relayr, an Internet of Things (IoT) start-up whose middleware platform aims to help industrial companies better understand their existing machines and their production line data. This acquisition will improve Munich Re's insurance claim
• In 2019, Concirrus announced the development of its Freight Data Analysis Solution, which aims to provide efficient means to price, select and manage freight insurance. It is known as Quest Marine Cargo and is expected to provide a comprehensive analysis of the entire cargo route, using AI combined with cargo monitoring.
• In 2020, Verisk launched its new analytics platform for automated life insurance underwriting in partnership with SCOR, a global reinsurer. The new analytics platform of Versik is developed in such a way to enhance the experience of life insurance purchases for consumers and assist the digital transformation of insurers.

Impact of Covid-19 on IoT Insurance Market:

The Covid-19 (coronavirus) pandemic is affecting society and the economy in general around the world. The impact of this pandemic is significantly affecting the supply chain across the globe. The massive supply chain disruption, decreasing business confidence and rising panic among end-user segments is greatly affecting the confidence of consumers. The effect of the pandemic is also influencing the manufacturing in several industries.

Market Growth and Trends:

P&C insurance should play an important role in IoT Insurance business in future

• P&C is expected to have a significant market share, due to the huge amount of data collected by this segment. This segment includes auto insurance, large commercial properties, home and contents, and accident insurance.
• Auto insurers used to set premiums using various proxy indicators, such as the age and address of the driver. Today, with the help of IoT, various data can be monitored, such as driver behavior and use of a vehicle, the speed at which it is driven and the duration of the trip. This allows insurers to assess risks more accurately.
• Progressive, an auto insurer, uses its usage-based insurance (UBI) telematics program to monitor the driving behavior of its customers. As a result, the company gets better information about the driver's performance and can set more accurate prices individually. Plus, it also rewards the safest drivers with a reduced premium.

Market Drivers and Restraints:

• The insurance model has improved and a hike in the number of start-ups are expected to act as an engine for the global IoT Insurance market growth. There is an increase in adoption in developed and developing economies that is also stimulating the market. The surge in the demand for value-added services and the new cloud platforms are expected to act as a determining aspect in the international market growth.
• On the contrary, the data privacy risks are considered as a principal factor that is expected to act as a limitation to this market boom.

GLOBAL IOT INSURANCE MARKET REPORT COVERAGE:

Global IoT Insurance Market Segmentation:

The global IoT insurance market is segmented by type, application, and region.

Global IoT Insurance Market By Type:

The type segment is further divided into health insurance, life insurance, property and casualty insurance (P&C) and others. P&C insurance has a good market share thanks to the data collected by this segment. This segment applies to auto, large commercial property, home and contents, and liability insurance. A large amount of data is generated that is used to analyze it and make it beneficial for both the insurance company and the policyholders. The increasing use of IoT-enabled wearable devices is also one reason this segment is growing. These portable accessories help generate data and get discounts for your customers.

Global IoT Insurance Market By Application:

According to the application, the IoT market is segmented into agriculture, automotive and transportation, commerce and business, consumer electronics and industrial machinery, residential and commercial buildings, life and health, travel and others. Consumer electronics has the maximum market share in this segment due to the maximum use of IoT in these devices. These electronic devices use sensors that can be guaranteed and therefore attract more customers. The installed sensors constantly send information in the form of data that is collected and monitored by the insurance company to develop its business.

Regional Analysis:

Geographically, the regional analysis of the global Internet of Things (IoT) insurance is being reviewed for regions such as Asia Pacific, North America, Europe, and the rest of the world. North America is expected to have the highest market share in the IoT insurance market due to the growing awareness and growing adoption of IoT in this region.

North America has been observed to dominate the Internet of Things (IoT) insurance market due to many factors such as the presence of developed economies such as the United States and Canada, early adoption and high investment power of the Internet of Things. Apart from this, the development of new technologies such as IoT, Big Data and others by many organizations will have a positive impact on the global IoT insurance market in this area. The Asia Pacific region is expected to show a sudden rebound in the global IoT insurance market due to factors such as the increasing penetration of the Internet of Things and the increasing number of wearable devices, drones and the like.

Key market players:

Some of the main competitors currently working in the global IoT insurance market are Google Inc. (USA), Lemonade Inc. (USA), SAP SE (Germany), IBM Corporation (USA), Cisco Systems, Inc. (United States), Oracle Corporation (United States), Zonoff Inc. (United States), Accenture PLC (Ireland), LexisNexis (United States), Capgemini (France), Hippo Insurance (United States), Lemonade Inc. (United States) ) Microsoft Inc. (U.S). Zurich Insurance Group Ltd. (Swiss). Berkshire Hathaway Inc. (United States), Allianz (Germany), Concirrus (United Kingdom), Genpact (United States) and others.