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During the pandemic, the global insurance industry was one of the few to defy the odds and retain an upward trend. Despite the massive dislocation of funds caused by the digital transformation, it is anticipated to sustain strong growth shortly. The global insurance industry was worth $6.1 trillion in early 2020, as per research data analyzed and released by ComprarAcciones.com. According to the researcher, it is anticipated to increase at a 3.5 percent compound annual growth rate (CAGR) to $7.5 trillion by 2025.

Premiums paid by US healthcare payers amount to $800 billion. Typically, these figures have not been included in the income of the industry. However, demand for converged digital health services and products such as wellness products has increased. In recent years, this rise has made the figure more notable.

It’s also essential to note that some conventional premiums may not be renewed as the shift to digital platforms continues. And this could significantly change the revenue landscape for insurers in the future. According to Accenture, around $140 billion in current insurance revenue is expected to shift to technology-enabled insurance products. The switch is expected to impact home automation and linked auto insurance, and a shift to behavior-based models.

Traditional insurers may lose another $140 billion to insurers that offer an online distribution experience. As more consumers purchase insurance through third-party platforms and online channels, this will become the norm. All in all, the industry is anticipated to thrive and grow. However, to capitalize on this expansion, insurers will need to rethink their business models and find new ways to capitalize on the digital revolution. Those who make a quick transition to technology-driven offerings are likely to be ahead of the pack. Those who do not do so risk losing market share to newcomers and digital-first competitors.

Customer wellness is another source of revenue growth, according to Accenture. To get the benefits of this, insurers will need to form new partnerships to improve their customers’ finances and health in a digital ecosystem.

A $120 billion growth in income is expected from integrating the health and wealth industries with life insurance. Innovative health products will be at the forefront, accounting for $60 billion of the total. $30 billion will be spent on products and services for the elderly. The residual $30 billion will come from direct life and wealth management services. Newly emerging risks, on the other hand, will provide a new source of revenue. Climate issues risks will generate up to $50 billion in revenue under ecological catastrophe insurance policies. As a result of the rise in cybersecurity threats, risk mitigation services will generate an additional $25 billion in revenue.

In essence, these new risks will compel insurers to rethink their roles as risk preventers rather than compensators. They will no longer be a financial cushion in the healthcare industry. Instead, they’re more likely to place themselves as active participants in loss and injury prevention.

According to Grand View Research, the insurtech market is expected to be worth $2.72 billion in 2020. Between 2021 and 2028, it is likely to increase to a staggering 48.8 (CAGR).

Insurance brokerage firms are investing significantly in digitalization to keep up with the digital transformation. These investments enable them to provide services online, resulting in increased sales and profits.

In 2021, the global market for insurance agents and brokers is expected to grow at a 3.5 percent compound annual growth rate (CAGR). Its worth will rise from $350.4 billion in 2020 to $362.54 billion in 2025. Its CAGR will increase to 6% in the years leading up to 2025, bringing the market’s value to $457.31.

The increase is ascribed to businesses reorganizing their operations as they recuperate from the pandemic’s effects. North America is the largest market for insurance brokers and agents globally, accounting for 44% of the global market in 2020. Europe is the second-largest region, accounting for 31% of the total, while Eastern Europe is the smallest.

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