Insurance Technology Market Analysis Europe - Size and Forecast 2024-2028

Europe Insurance Technology Market Size 2024-2028

The Europe insurance technology market size is forecast to increase by USD 19.72 billion, at a CAGR of 36.5% between 2023 and 2028. The growth of the insurance market hinges on several critical factors in today's landscape. Natural hazards drive an increasing need for insurance coverage, as individuals and businesses seek protection against unpredictable events like floods, storms, and earthquakes. Government regulations mandating insurance coverage further stimulate market expansion, compelling compliance across various sectors. Simultaneously, the adoption of cloud-based solutions revolutionizes insurance operations, enhancing efficiency in policy management, claims processing, and customer service. Cloud platforms offer scalability, data security, and accessibility, catering to insurers' growing technological needs. These factors collectively propel the insurance sector forward, fostering innovation and resilience amidst evolving risks and consumer expectations. The synergy of addressing natural hazards, complying with government regulations, and embracing cloud-based solutions underscores the industry's adaptation to modern challenges while enhancing service delivery and market competitiveness. It also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the report includes historic market data from 2018 - 2022.

What will be the Size of the Market During the Forecast Period?

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Market Dynamic and Customer Landscape

The insurance industry is experiencing significant changes driven by digital transformation and evolving technology trends. Insurtechs are at the forefront, introducing innovative solutions that reshape risk analysis, claims notifications, and service delivery through digital channels. Premium growth is bolstered by insurtech investments in technologies like generative AI, which enhances risk assessment and contextual data utilization for personalized policies. Companies such as Tractable, Photocert, Mitiga, and Spotr exemplify augmented reality and virtual reality applications, offering replacement services and healthcare solutions that redefine the value proposition in insurance. The emergence of venture client models facilitates collaboration between incumbents and insurtechs, fostering combined value and accelerating digital innovation across the sector. As insurers adapt to these advancements, they are poised to improve customer experience and operational efficiency while navigating the complexities of modern risk landscapes.

Key Market Driver

The increasing adoption of cloud-based solutions is notably driving the Europe insurance technology market growth.  Cloud systems are cost-effective for insurance companies, as software services can be used on a pay-per-use basis. Factors that drive the adoption of cloud-based solutions in the regional insurance industry are limited requirements for hardware infrastructure, less dependency on in-house IT personnel, and low maintenance costs. Some of these factors enable enterprises to focus on developing their core competencies. The growing acceptance of cloud-based insurance solutions may be attributed to their flexibility to scale up and down, depending on the company's requirements, high-speed deployment, and low upfront costs.

Moreover, some companies that provide cloud-based insurance solutions are Qover SA, Duck Creek Technologies, and Quantemplate. For instance, Duck Creek offers a SaaS solution, providing all services, support, and computing resources for insurance companies in Europe. Moreover, it enables organizations to access data and services remotely through a web browser without installing and managing the application software. It has a short implementation time, which further reduces the cost of implementation and improves the ROI. Cloud-based insurance solutions have multiple advantages when compared with traditional on-premises software. Therefore, the rising adoption of cloud-based solutions in the regional insurance industry is expected to augment the growth of the market in Europe during the forecast period.

Major Market Trends

The increasing collaborations between investors and insurance technology companies is a key trend influencing the Europe insurance technology market growth.  Investors are demonstrating an increased interest in collaborating with insurance technology firms or technology-first insurance start-ups in the region. The importance of insurance technology is increasing at a rapid pace among insurance companies. In the next ten years, the entire insurance process is expected to become digital and will not require the involvement of any form of physical interference.

Moreover, the focus of insurance technology companies is on the growing consumer demand for the sophisticated customization of insurance products and personalized services. Insurance technology is about creating appropriate insurance coverage for an individual. The trend of purchasing insurance over an application is increasing in the region. Therefore, due to such factors, the market has witnessed an increase in investors' collaboration with insurance technology firms. For instance, in December 2020, simplesurance GmbH, a berlin-based insurance technology company, received around USD 18 million (EUR 15 million) as a convertible loan from Allianz X. Therefore, such investments is expected to augment the growth of the insurance technology market in Europe during the forecast period.

Major Market Challenge

Changing skill requirements may impede the Europe insurance technology market growth. Technological advances are driving the growth of the insurance industry in Europe. Customer-facing applications are being introduced in the market. In addition, data analytics is increasingly being integrated into the main insurance technology solutions to derive insights, detect fraud, and predict claim patterns. The use of technologies, such as blockchain, in cloud insurance solutions can increase the efficiency and security of data. This assures customers of the safety of their credentials and classified data.

However, the right skills are required to understand and use such high-tech innovations. Domestic companies can make the software user-friendly as the market is becoming customer-centric. In addition, customers' trust in the brand increases if they can understand the process. Thus, the data needs to be readable and comprehensible to customers so that it is useful to them. The insurance industry in Europe is facing a challenge in finding a skilled workforce to implement digital innovations. This is hindering technology adoption among insurance companies which may hamper the growth of the market in focus during the forecast period.

Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.

Market Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Akur8 - The company offers insurance technology solutions such as the Risk module, Demand module, and Rate module.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• 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
• Xempus AG

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Segmentation 

The market share growth by the solution segment will be significant during the forecast period. The demand for improved, customer-centric solutions has increased in Europe. In mature markets, insurers are migrating to digital platforms.

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The solution segment was valued at USD 1.60 billion in 2018. Insurers are developing new products to meet the changing needs of customers. Hence, InsurTech platforms should ensure proper data and risk management, improve underwriting accuracy, and predict losses. This enables insurers to increase operational efficiencies and reduce the cost of insurance products. Therefore, the solutions segment is expected to grow at a significant rate during the forecast period.

Segment Overview

The market research report provides comprehensive data, with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Type Outlook 
  • Solution 
  • Service 

• Technology Outlook 
  • Cloud computing
  • IoT 
  • Big data and business analytics
  • Blockchain 
  • Others 

Market Analyst Overview

The insurance industry is undergoing a transformation shaped by fast processes and the emergence of innovative insurtechs catering to both B2C and B2B markets. Traditional incumbents are navigating this dynamic landscape alongside managing general agents and service companies specializing in repairs and maintenance. Investment flows and venture capitalist investments are fueling growth, influencing funding volumes and enterprise valuations across the sector. Moreover, tech companies and Fintechs are integrating into the industry ecosystem, enhancing performance and fostering symbiotic relationships with insurers. Amidst fluctuating interest rates and inflation, the availability of data drives strategic insurance investments and decision-making processes. Startups like Clark, Coya, Luko, SimpleInsurance, and Thinksurance are pivotal players at various stages of development, from seed stage to securing seed funding from venture capitalists and corporates. Furthermore, the sector's turning point lies in collaborative efforts between traditional banks, insurtechs, and tech companies like those listed on Nasdaq, setting the stage for innovative solutions that meet evolving customer demand and reshape the future of insurance.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market report during the forecast period
• Detailed information of market analysis and report on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the size of the market and its contribution in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across Europe
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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