marketing research on insurance industry

Innovate to win: Why market research is key to insurance industry success

A changing world demands insurance innovation

Underlying drivers of change are fundamentally transforming the foundations of the insurance industry. New ways to expand insurability and to measure, control, and price risk enable the creation of innovative insurance products and services. Digital platforms disrupt how insurers reach policyholders and potential customers, especially millennials who expect on-demand, high-touch services with delightful user experiences. Technology advances including artificial intelligence and cloud computing improve efficiencies, and with automation, insurers can reduce the cost of a claims journey by as much as 30%. 1 How can insurers leverage these breakthroughs to address unmet consumer demand, successfully launch new insurance products, and drive down costs?

Milliman addresses this question in the “Innovate to win” series. Our first article presented a roadmap to guide you through the entire innovation process. 2 Here, we focus on how you can identify and meet the needs of your customers through market research.

Why do insurers need to conduct market research?

Research into the behavioral economics, marketing, and psychology of insurance products is business-critical for insurers. To sustain profitable growth, insurers must create innovative products and services while improving customer connectivity. The typical insurance company loses 10% to 15% of its customer base every year and the cost of acquiring new customers makes this churn extremely expensive. 3 However, innovation is also expensive and inherently risky. According to Harvard Business School, 95% of the 30,000 new products introduced into the general marketplace each year are failures. 4 With deep risk management expertise and large customer bases, insurers are better positioned to succeed at innovation when compared to other industries.

Successful innovations solve fundamental customer problems in new, better, or more cost-effective ways. Researching customer needs and expectations in the context of your competitive landscape is an integral part of the process. To mitigate risk, all these questions should be researched and answered before launching any innovation into the market:

• What products, services, processes, and ideas are already available in the marketplace?
• What are consumers looking for in this offering and how does it meet their needs?
• What similar products/services do my competitors offer and what are they doing to stay competitive in this market?
• Is this a new offering or different approach to an existing offering?
• What is the potential market size in terms of revenue and profits for this product/service?
• How will we market this offering to consumers?
• Will this offering work as we have designed it?
• Will this product, service, or process disrupt the market, and if so, what impact and value would it have on consumers and the industry?

Market research provides valuable insight into consumer needs and can eliminate misperceptions regarding what potential customers will think about your new product, service, or process. Research can help you clearly define your target market, avoid costly mistakes, and speed product development time. Although market research helps mitigate risk, it does not eliminate it entirely and can be costly. You will need to determine how much time and money you are willing to spend researching the market and if your potential innovation is worth the investment.

What types of market research work best for insurers?

Primary and secondary research are the two most effective ways for insurers to gather information about markets, products, and consumers. Contrary to its name, secondary research is usually conducted first and analyzes existing data. By combining multiple sources of secondary data, you can identify trends and gather useful information at a low cost. You can then use this information to better understand the actions you and/or others have already taken and learn from any mistakes or successes. Secondary research helps maximize future primary research, which is the collection of new data about a specific topic. Certainly, secondary research has value, but it lacks the customization and specificity needed to evaluate larger insurance innovation projects.

When do insurers need to invest in primary research?

A business decision of major consequence requires primary research. Primary research begins with a review of secondary research to efficiently gain direction and insight into the intended study topic. After that, quantitative and/or qualitative methodologies are used to gain further insight into consumer needs, preferences, and behavior. Additional benefits of engaging clients in a research project include strengthening relationships, winning loyalty, and creating new business opportunities.

Quantitative data, typically gathered using surveys, can be represented by usable statistics. Surveys gather a significant amount of data in a relatively short timeframe from a wide range of people, giving you the confidence that the data accurately represents your customer base. This data can provide valuable insight into consumer preferences such as likes and dislikes, satisfaction ratings, and opinions. You can run statistical significance tests to apply results to the population of interest and present the results graphically. Data-driven charts and graphs are an effective way to help stakeholders understand research and convince them to act on the results.

When you need more context regarding your data-- for example, why people feel a certain way about a response-- then qualitative research is the best approach. Sometimes the “why” is critical to exploring a study topic and qualitative research addresses this requirement through focus groups and interviews. These methods enable more in-depth understanding through direct quotes from respondents, the use of themes to bucket responses, and the ability to contextualize answers to understand the “why.” Although qualitative research is valuable, it can be time-consuming and costly when compared to quantitative research. Data is collected from a much smaller sample, so it is difficult to present in an aggregate summary and not statistically significant as being representative of the entire population.

How does primary research advance insurance innovation?

Both types of primary research methods are valuable and can provide insight into the market with different applications and emphasis:

• Quantitative surveys are questionnaires developed specifically for the topic being studied and distributed to a large sample of potential respondents based on specific criteria. Surveys provide a comprehensive view of the market due to a large sample size but are limited in the ability to understand the “why.”
• Qualitative interviews and focus groups provide context by giving participants the opportunity to expand on why they have certain beliefs and opinions and how they feel about the topic of study. In-depth interviews are one-on-one sessions with participants who are selected for their expertise and knowledge in a specified area. Focus groups are moderated discussions of opinions about a specific topic or product. Seven to 10 participants are selected using a screener questionnaire based on specific criteria. The moderator provides the structure, asks the questions, and gives overall direction to guide the discussion.

The most effective product development processes combine quantitative and qualitative research methodologies to refine and validate innovative ideas and prototypes. When you get the results of your research, it is important to have the infrastructure and resources in place to act on those insights. It is also important to note that the results of your research may require you to change your plans because what you previously thought were great ideas were not validated by the market research.

Still, it might be difficult to for your company to adopt new ideas and move forward with your innovation. Administrative systems can slow your company’s product development process and potentially hinder your initiative. Distribution issues can also make or break new product or service delivery. Bottom-line concerns such as low interest rates and the cost of meeting regulatory requirements are key considerations. As a result, many insurers de-emphasize innovative product development initiatives because of resource constraints and development and approval costs. 5

If you are making a big decision regarding an innovation, it is important to dedicate resources to perform in-depth market research. Discovering what your target customers think about your innovation enables you to tailor and refine it before you officially launch it. It is best practice to test multiple variations of your solution with your target market to determine which version resonates most with customers. Research is an opportunity for you to test both the innovation and the messaging you will use when going to market.

If you would like to discuss how customized market research can strengthen the development of your innovative offerings, please contact David Bahlinger or one of the other outstanding professionals at Milliman.

1 McKinsey. (March 2017). Digital disruption in Insurance: Cutting through the noise. Retrieved on May 26, 2020, from https://www.mckinsey.com/~/media/McKinsey/Industries/Financial%20Services/Our%20Insights/Time%20for%20insurance%20companies%20to%20face%20digital%20reality/Digital-disruption-in-Insurance.ashx .

2 Borcan, Ashlee Mouton. Milliman.com. Innovate to win: Insurance industry roadmap to success. March 5, 2020. Retrieved on May 26, 2020, from https://us.milliman.com/en/insight/innovate-to-win-insurance-industry-roadmap-to-success

3 Simpson, Pamela. The Lowdown: Reimagining Research to Recognize Emerging Insurance Industry Trends. (September 19, 2019). Insurance Journal. Retrieved on May 26, 2020, from https://www.insurancejournal.com/blogs/research-trends/2019/09/19/540368.htm .

4 Emmer, Marc. 95 Percent of New Products Fail. Here are six steps to make sure yours don’t. (July 6, 2018). Inc. Retrieved on May 26, 2020, from https://www.inc.com/marc-emmer/95-percent-of-new-products-fail-here-are-6-steps-to-make-sure-yours-dont.html .

5 Society of Actuaries. Understanding the Product Development Process of Life and Annuity Companies. (December 2017). Retrieved on May 26, 2020, from https://www.soa.org/globalassets/assets/files/research/understanding-product-development-report.pdf .

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The essential guide to insurance marketing strategy.

Look through our guide to inform your marketing team about the best insurance marketing plans and strategies for 2024.

Home / Solutions / Financial Services /  Insurance  / The Essential Guide to Insurance Marketing Strategy

Introduction

Understanding insurance marketing, benefits of insurance marketing, crafting an insurance marketing strategy, marketing plan for insurance companies, insurance marketing services, audience building in insurance marketing, leveraging technology and analytics, table of contents.

Effective marketing strategies are essential to stand out and succeed in the insurance industry. Below we’ll explore:

• Unique characteristics of insurance marketing
• Benefits of marketing campaigns for insurance firms
• A comprehensive approach to developing a robust marketing strategy

Insurance marketing encompasses a range of activities aimed at educating potential customers about insurance coverage, building trust and credibility, and ultimately driving policy sales. 

However, insurance marketing comes with its own set of challenges. The industry is highly regulated, and marketers must adhere to strict compliance guidelines. Additionally, insurance products can be complex and technical, requiring specialized knowledge to communicate their value effectively.

Effective insurance marketing brings numerous benefits:

• Attract and retain clients: By creating awareness of their products and services, insurance companies can reach new audiences and convert prospects into policyholders.
• Build trust and credibility: Effective and strategic marketing sets insurance companies apart and assures clients of reliable coverage and responsive service.
• Enhance brand recognition and customer loyalty: Targeted marketing efforts deliver consistent value, personalized experiences, and exceptional service to establish stronger, long-term client relationships.
• Highlight product innovation and differentiation: In an industry where offerings seem similar, effective marketing can showcase unique features and benefits.

Your insurance marketing strategy requires making decisions about:

• Target markets: Pinpoint industries or sectors that align with your expertise, such as healthcare or manufacturing . Delve deeper into these segments to understand their unique needs, risks, and challenges.
• Positioning: Define your company identity in the minds of target clients. For instance, you may position yourself as a leader in risk management for technology firms or as a specialist in liability coverage for healthcare providers. Once you’ve defined that, you can craft a focused and consistent brand message.
• Competitive advantage: Your differentiators may involve specialized services, innovative solutions, superior customer service, or a combination thereof. These serve as a beacon to attract and retain clients seeking value beyond conventional offerings. 
• Value proposition: Show how you’ll address the unique challenges faced by businesses within target segments.
• Target personas: Create comprehensive client profiles that encompass industry, company size, decision-making roles, pain points, and financial objectives. Understanding these personas aids in personalizing messaging and services to resonate with the precise needs of potential clients.

Step 1: Market Research

• Market trends
• Customer needs
• Customer preferences
• Customer behaviors

Step 2: Target Audience Analysis

Step 3: set marketing objectives, step 4: choose marketing mix.

• Product: Articulate the range of insurance services you offer and highlight their unique value.
• Price: Develop a pricing strategy that aligns with your target market and positions your insurance services competitively. Consider factors such as coverage options, deductibles, and premiums to ensure your pricing is attractive to potential clients while still maintaining profitability.
• Place: Identify the most effective channels and platforms to reach your target audience and distribute your insurance marketing messages. Whether it’s through digital channels, traditional advertising, or partnerships with local businesses, choose the right distribution channels to maximize your reach and engagement.
• Promotion: Use advertising, content marketing, social media, events, and other promotional activities to effectively promote your insurance services.

Step 5: Budget Allocation

• Generate leads
• Foster audience engagement
• Drive conversions

Step 6: Performance Measurement

• Conversion rates
• Customer acquisition costs
• Engagement levels

SEO and SEM

Content marketing.

• Published articles

Marketing Automation

Compliance and data security.

Now, let’s cover effective strategies for connecting with your target audience.

Personalization is key; by tailoring marketing communications for diverse policyholders, insurance companies can create a more relevant experience for their audience. This can be achieved through techniques like:

• Dynamic content
• Personalized emails
• Targeted advertising

Using data analytics and AI provides visibility into user behavior, preferences, and trends that enable audience segmentation and targeted campaigns. 

Tools like 6sense collect intent data that gives visibility into prospective clients’ online activity, revealing the topics and insurance solutions they’re most interested in. 6sense’s AI marketing technology also analyzes large datasets in real-time, allowing for a comprehensive understanding of customer interactions. This level of data enables you to deliver personalized recommendations, offers, and tailored experiences to clients and prospects. 

Finally, to expand your audience effectively, you must foster a sense of trust and reliability among potential clients. Proactively share valuable insights, industry expertise, and educational resources and make them readily accessible, without gating behind forms. Position yourself as a trusted advisor and thought leader by publishing informative materials through various channels, like:

• Social media

Employing tools like 6sense offers the capability to use precise targeting, ensuring the right content is delivered to prospects right at the time they are showing interest. This approach not only establishes credibility, but also allows your audience to learn from you organically, fostering trust and building meaningful relationships.

Using technology in the insurance sector enhances the customer journey and marketing ROI while protecting user data security and privacy. 

As businesses across industries rely more heavily on digital platforms, it’s essential to prioritize data security. Encryption, firewalls, and secure authentication methods are just a few mechanisms used to protect data from potential breaches. Innovative technologies like blockchain offer transparent record keeping, maintaining data integrity and reducing the risk of fraudulent activities. Further, advancements in AI and machine learning help to detect anomalies or potential threats in real-time, allowing you to be proactive in mitigating risk.

Technology also plays a pivotal role in enhancing the user journey and optimizing marketing efforts. A MarTech stack , which includes solutions like customer relationship management (CRM) systems and marketing automation tools, helps:

• Streamline marketing processes
• Improve efficiency
• Manage client relationships
• Deliver personalized client experiences
• Track engagement and performance

Tools like 6sense enable insurers to harness internet data, which provides visibility into online activities such as web searches, content consumptions, and other interactions that signify a prospect’s active interest in a certain product or service. With this level of insight, you can narrow down audience segments to pinpoint in-market buyers and tailor messaging accordingly.

The dynamic nature of the insurance industry demands adaptability and a deep understanding of your target audience. By implementing tailored marketing strategies, powered by technology and data, you can deliver relevant and compelling messages that resonate with your audience, and ultimately increase engagement and conversion rates.

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Insurance industry outlook

Gain insights about the latest insurance industry trends, the sector’s digital reinvention, innovation and growth opportunities.

• What is the Insurance Industry?
• Insurance Industry Outlook 2023
• Top Insurance Industry Trends
• Transformation in the Insurance Industry
• Related Capabilities

What is the insurance industry?

The insurance sector can be defined as complex and dynamic, providing financial protection against risk to individuals and businesses, offering a wide range of products, including life insurance, health insurance, property and casualty insurance, and other specialized forms of coverage. At a time of accelerating disruption, insurance is poised for reinvention even as it remains resilient.

Market forces like inflation and varied forms of disruption—from geopolitical to technological—are buffeting the industry. In addition, customer expectations are growing. While these create challenges, there is also a big opportunity to pivot towards the future, from insurance trends like the growth of new digital channels to the potential for new business models and partnerships. To excel in this environment, organizations must embrace innovation and reinvention, including leveraging technology to boost operations, enhance customer experiences and launch new products and services.

Insurance industry outlook 2023

The near-term performance of the global insurance industry is expected to remain strong. This is despite the fact that global GDP forecasts and life- and non-life insurance projections have been revised downward.

Market Dynamics

Inflation is expected to impact the entire insurance value chain—from customer acquisition costs to claims expense and indemnity. The pressures from wages, healthcare, energy and social inflation are also likely to persist.

Insurers will also need to plan for continued disruption. Accenture’s Global Disruption Index—a composite measure that covers economic, social, geopolitical, climate, consumer and technology disruption—shows that levels of disruption have increased by 200% from 2017 to 2022. Previously, the Index rose by a mere 4% from 2011 to 2016.

Insurance will reinvent and expand in new directions

Reinvention will be a central strategic driver for insurers. In our recent Total Enterprise Reinvention report , 61% of insurance executives say shifting consumer preferences have accelerated their reinvention strategy. In 2023, there will be growing opportunities for insurers to expand their portfolio across health and wealth protection products, leading to further industry convergence. Prevention-oriented products and services will become increasingly popular for insurers. For example, by promoting sustainable driving habits, an insurer supports safer roads and helps reduce carbon emissions.

To achieve a competitive advantage, insurers need to innovate in new products, such as:

Reinventing their core business is a key strategic focus for insurers, with 61% of insurance executives saying that shifting consumer preferences have accelerated this process.

Technology-enabled products

Transforming health and wellness, auto and home insurance through technology.

Aligned, integrated advisory services

Services such as financial advice aligned to life and health.

New revenue streams

Collaborating with relevant partners to open new revenue paths.

Top insurance industry trends

The following trends continue to shape the insurance industry:

Insurance Trend 1: Growth and innovation

To propel growth, insurers understand that they need to innovate beyond their existing business models. As a result, insurers are seeking to differentiate themselves through reimagined, enhanced products and smart partnerships with industry peers, aligned industries and new market entrants. Consider the case of Mobilize Financial Services. The subsidiary of the Renault Group recently announced the launch of Mobilize Insurance, a car insurance specialist for the European market that will offer integrated usage-based car insurance for Renault, Dacia and Alpine customers. As part of the group’s ambition to create sustainable mobility for all, Mobilize Insurance will offer a ‘pay as you drive’ insurance model, with personalized pricing and offers.

Insurance Trend 2: Technology revolution

As a data-dense industry, the insurance industry is ripe for digital transformation— from operations to products and services. In Accenture’s recent ‘ Total Enterprise Reinvention ’ report, 56 percent of insurance executives report their organization having fundamentally reinvented processes by applying new technologies and new ways of working in sales.

For example, in the insurance industry digital technologies can streamline manual services. Cloud-based solutions can integrate insurance functions and solutions across the business, and intelligent analytics can deepen data analysis and risk. The key focus for insurers is not just on the individual technologies themselves, but how these technologies work together to affect transformation.

Insurance Trend 3: Artificial Intelligence (AI)

AI refers to the theory and development of computer systems that perform tasks normally requiring human intelligence, such as visual perception, speech recognition, decision-making and language translation. As a transformative technology, AI is the critical differentiator in the insurance industry—when applied in tandem with humans. AI's ability to analyze data quickly and accurately has rich potential for the insurance sector, as it enables the vast amounts of data to be leveraged in efficient and innovative ways. Half (52 percent) of insurance industry respondents in Accenture’s Total Enterprise Reinvention CxO Survey say that unlocking new growth opportunities is the most important benefit executives expect from investing in data and AI. Despite the economic downturn, 87 percent of insurance industry respondents also say that they plan to implement new and innovative cloud, data, AI or tech initiatives, including hiring, acquiring or training talent.

Insurance Trend 4: Workforce transformation

The workforce is at the center of the reinvention of the insurance industry, with the Chief Human Resource Officer (CHRO) being seen as an important agent of growth and change. In Accenture’s recent The CHRO as Growth Executive report, 89% Of CEOs say their CHRO should have a central role in ensuring long-term profitable growth. This translates to a strategic focus on developing and optimizing the insurance workforce.

There are two key trends in the insurance workforce – the rise of AI and a growing talent shortage. Insurance is historically data-intensive. The introduction of AI has enabled mundane administrative tasks to be automated, freeing up employees to do more challenging, rewarding work.

The growing talent shortage trend in insurance is becoming a pressing challenge for the insurance industry. While some functions will be replaced or enhanced by intelligent technologies, there is still going to be an anticipated gap in human skills, with thousands of positions expected to be left unfilled. This is largely owing to a great amount of insurance and underwriting skill sets being held by middle and retirement-aged people, with less than 25% of the insurance industry being under 35 years of age. For innovative, analytical thinkers who are wanting to make an impact in financial services, this means that insurance could be a viable future career path.

Insurance Trend 5: Metaverse Continuum

Accenture defines the Metaverse Continuum as a spectrum of digitally enhanced worlds, realities and business models that are redefining how people work, operate and interact. While still in its early stages of adoption, the metaverse holds the potential to help insurers build new models custom-fit for the digital age. The metaverse will elevate expectations for how customers interact with insurance products and experiences, and bring advances in employee training, shifts in revenue pools, and new distribution models in the next five years.

Insurance Trend 6: Sustainability

The integration of sustainability is a fundamental part of the insurance business model. It is not only ethically important, but it is also a way for insurers to proactively mitigate risk by improving community and environmental conditions. The latest United Nations Global Compact-Accenture CEO Study on Sustainability , recently shared at Davos, presented an urgent call for businesses and governments to take action on Sustainable Development Goals (SDGs). To remove barriers on taking action, CEOs are calling for a new roadmap to achieve the SDGs and asking government to accelerate the green transition. Within insurance, a key indicator of success will be financed emissions. This refers to emissions linked to the investment and underwriting activities of financial institutions such as insurers.

Transformation in the insurance industry

• NEW MARKET ENTRANTS
• INDUSTRY TRANSFORMATION

As a data-rich industry, insurance leverages a customer’s personal data to help them make the best purchasing decisions and create products and services tailored to their needs. For example, by tracking the data on customers’ wearable fitness devices (such as a Fitbit), an insurer can understand important information about their health and fitness, which influences the pricing of their plan. Although customers are happy to share data for better deals and pricing, there is still a relatively low level of trust regarding this scenario. Leading insurers illustrate to their customers how sharing their personal data results in integrated, intuitive products and services they can trust.

From bancassurance to insurtech companies, new businesses vie for the attention of insurance customers through tech-savvy, integrated business models. Insurers can retain market share by working in partnership with these industry disruptors, resulting in insurance solutions that blend the traditional and the new in innovative, exciting ways.

The insurance industry is historically characterized by legacy, manual processes. To remain relevant in the future, insurers break down silos within their businesses and embrace digital transformation. These new technologies offer incredible opportunities for insurers to become integrated with parallel industries and be more relevant to customers.

How to reimagine insurance for the digital age

At Accenture, we work closely with insurance businesses to proactively address changing customer needs. These are the key areas on which insurers will focus as they prepare for the future:

• Grow and innovate by reimagining the role of insurance in customers’ lives, as well as the technology needed to serve them wherever they are.
• Modernize technology to streamline legacy systems and transform claims and underwriting.
• Invest in the future workforce by optimizing talent, planning for new ways of working and using human and machine capabilities for the best result.
• Imagine the metaverse and how that can transform the way insurance companies run their internal processes and engage with their clients.
• Promote sustainability across every aspect of the business.

Learn about the latest insurance trends and the sector’s global transformation.

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Frequently asked questions

What industry is insurance in.

Insurance resides within the financial services industry.

What is the general role of the insurance industry?

The role of the insurance industry is to safeguard businesses, individuals and other entities against major financial loss. The industry functions by having companies that diversify risk across a pool of organizations or customers.

How do insurance companies work?

Insurance companies typically generate revenue by putting a price on different types of risk and then charging customers a premium in exchange for assuming that risk. Insurance companies can reinvest those premiums into interest-generating assets. When a customer files an insurance claim, the insurer processes and decides whether to approve the claim before it provides an insurance payout to the customer. By pricing and diversifying risk effectively across customers, insurers aim to bring in a greater amount in revenue than they spend on insurance payouts to customers.

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Global insurance industry - statistics & facts

Which markets are the largest, who are the world’s leading insurers, key insights.

Detailed statistics

Life and non-life insurance penetration in selected regions globally 2020-2022

Biggest 50 insurance companies worldwide May 2023, by market cap

Value of global reinsurance premiums 2013-2022

Editor’s Picks Current statistics on this topic

Gross premiums of the insurance industry worldwide 2000-2022

Life and nonlife direct premium writing countries globally 2022, by value of premiums

Further recommended statistics

Market overview.

• Premium Statistic Market share of the total insurance market worldwide 2000-2022, by country
• Premium Statistic Gross premiums of the insurance industry worldwide 2000-2022
• Premium Statistic Value of global reinsurance capital 2013-2022
• Premium Statistic Insurance search ad spend worldwide 2020-2021
• Premium Statistic ESG scores of the worlds' largest insurance companies 2023, by provider

Market share of the total insurance market worldwide 2000-2022, by country

Market share of the total insurance market worldwide from 2000 to 2022, by country

Gross premiums written by the insurance industry worldwide 2000 to 2022 (in trillion U.S. dollars)

Value of global reinsurance capital 2013-2022

Value of global reinsurance capital from 2013 to 2022 (in billion U.S. dollars)

Insurance search ad spend worldwide 2020-2021

Paid search advertising spending of the insurance industry worldwide in 2020 and 2021 (in million U.S. dollars)

ESG scores of the worlds' largest insurance companies 2023, by provider

Comparison of the environmental, social and governance (ESG) scores of the 26 largest insurance companies by market capitalization worldwide in 2023, by ESG score provider

• Premium Statistic Leading premium writing countries globally 2022, by premiums
• Premium Statistic Share of insurance direct premiums written globally 2008-2022, by segment
• Premium Statistic Share of insurance premiums globally 2021, by region
• Premium Statistic Life and nonlife direct premium writing countries globally 2022, by value of premiums
• Premium Statistic COVID-19 insurance claims made globally until June 2021, by segment
• Premium Statistic Share of global population ready for open insurance 2022, by country

Leading premium writing countries globally 2022, by premiums

Leading life and non-life direct premium writing countries globally in 2022, by premiums (in billion U.S. dollars)

Share of insurance direct premiums written globally 2008-2022, by segment

Distribution of life and health, and property and casualty insurance direct premiums written globally from 2008 to 2022

Share of insurance premiums globally 2021, by region

Distribution of insurance premiums worldwide in 2021, by region

Leading life and nonlife direct premium writing countries globally in 2022, by value of premiums (in billion U.S. dollars)

COVID-19 insurance claims made globally until June 2021, by segment

Breakdown of COVID-19 insurance claims worldwide from 2020 to June 2021, by business segment

Share of global population ready for open insurance 2022, by country

Distribution of open insurance-ready users worldwide in 2022, by country

Leading companies

• Premium Statistic Biggest 50 insurance companies worldwide May 2023, by market cap
• Premium Statistic Largest life insurance companies globally December 2023, by market capitalization
• Premium Statistic Leading insurance companies worldwide 2023, by total assets
• Premium Statistic Leading insurance companies globally 2022, by revenue
• Premium Statistic Leading global P/C reinsurers 2019-2022, by gross reinsurance premiums written

Largest insurance companies worldwide as of May 2023, by market capitalization (in billion U.S. dollars)

Largest life insurance companies globally December 2023, by market capitalization

Largest life insurance companies worldwide as of December 2023, by market capitalization (in billion U.S. dollars)

Leading insurance companies worldwide 2023, by total assets

Largest insurance companies worldwide as of May 2023, by total assets (in billion U.S. dollars)

Leading insurance companies globally 2022, by revenue

Leading global insurance companies worldwide in 2022, by revenue (in billion U.S. dollars)

Leading global P/C reinsurers 2019-2022, by gross reinsurance premiums written

Leading property/casualty reinsurers globally, by gross reinsurance premiums written from 2019 to 2022 (in billion U.S. dollars)

Sales metrics/consumption

• Premium Statistic Share of consumers who sought and purchased insurance worldwide 2022
• Premium Statistic Life and non-life insurance penetration in selected regions globally 2020-2022
• Premium Statistic Price change in commercial insurance worldwide 2015-2023
• Premium Statistic Price change in commercial property insurance worldwide 2018-2023
• Premium Statistic Price change in commercial casualty insurance worldwide 2018-2023
• Premium Statistic Price change in finpro liability insurance worldwide 2018-2022

Share of consumers who sought and purchased insurance worldwide 2022

Share of consumers who searched for and bought insurance in selected countries in 2022

Life and non-life insurance penetration in selected countries and territories worldwide from 2020 to 2022

Price change in commercial insurance worldwide 2015-2023

Percentage change in commercial insurance pricing worldwide from Q1 2015 to Q4 2023

Price change in commercial property insurance worldwide 2018-2023

Percentage change in commercial property insurance pricing worldwide from Q2 2018 to Q4 2023

Price change in commercial casualty insurance worldwide 2018-2023

Percentage change in commercial casualty insurance pricing worldwide from Q2 2018 to Q4 2023

Price change in finpro liability insurance worldwide 2018-2022

Percentage change in financial and professional liability insurance pricing worldwide from Q2 2018 to Q4 2022

• Premium Statistic Estimated size of the global insurance market 2017-2023, with forecasts until 2028
• Premium Statistic Hiring freezes, downsizing and outsourcing plans in the global insurance sector 2022
• Premium Statistic Cyber insurance market size worldwide 2017-2022, with forecast for 2025
• Premium Statistic Number of open insurance users globally 2021, with forecasts for 2024 and 2032

Estimated size of the global insurance market 2017-2023, with forecasts until 2028

Value of gross written premiums worldwide from 2017 to 2023, with forecasts from 2024 to 2028 (in trillion U.S. dollars)

Hiring freezes, downsizing and outsourcing plans in the global insurance sector 2022

Share of insurance CEOs planning selected actions to prepare for an anticipated recession in the next six months worldwide in 2022

Cyber insurance market size worldwide 2017-2022, with forecast for 2025

Global cyber insurance market size from 2017 to 2022, with forecast till 2025 (in billion U.S. dollars)

Number of open insurance users globally 2021, with forecasts for 2024 and 2032

Number of open insurance users worldwide in 2021, with forecasts for 2024 and 2032 (in millions)

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13 Insurance Agent Marketing Strategies to Drive Revenue

Insurance agents often find themselves at a crossroads. The path to success is fraught with competition, changing consumer behaviors, and the relentless pressure to meet sales targets.

It’s a landscape where standing out doesn’t just mean being different; it means being smarter, more relatable, and ahead of the curve. This is where insurance marketing comes into play.

Whether it’s the intricacies of a commercial insurance policy or the nuances of health insurance marketing strategies, the goal remains to drive revenue through effective outreach and engagement.

Developing a solid insurance marketing strategy is essential for insurance agents. Today, we’ll explore 13 insurance agent marketing strategies to navigate and conquer this maze, ensuring your message resonates with the right audience at the right time.

What Is Insurance Marketing?

13 insurance agent marketing strategies, grow your insurance business & reah with demandhub, frequently asked questions about insurance marketing.

Insurance marketing includes the strategies and tactics insurance agents and companies use to promote their services, engage with potential clients, and retain current customers.

It’s a multifaceted approach that blends traditional marketing methods with digital innovations. The goal is to reach a broader audience while targeting specific demographics with tailored messages.

At its core, insurance marketing is about building relationships and trust. It involves understanding the needs and concerns of your potential clients and then communicating how your insurance products can address those needs effectively.

Effective insurance marketing requires a keen understanding of the market, the competition, and the latest trends in consumer behavior. It means being adept at using various platforms — from social media and email campaigns to webinars and face-to-face networking events — to connect with and educate your audience.

The ultimate goal? To convert prospects into loyal customers, driving revenue and achieving business growth.

1. Leverage Social Media to Build Relationships

Social media is a powerful tool for insurance agents. Platforms like Facebook, LinkedIn, and Instagram offer unique opportunities to connect with potential clients. Agents can foster community and trust by sharing insightful content, engaging in conversations, and showcasing client testimonials.

78% of consumers are more willing to buy from a company after having a positive experience with them on social media. That means a single like can go a long way.

Image Source: 99social

To truly understand your customers and address their concerns, become a social listening ninja. Here’s how you can become one:

Stay Alert with Notifications

Set up notifications for brand mentions, relevant keywords, and popular hashtags related to the insurance industry. This ensures you catch customer comments and concerns in real time, allowing you to respond promptly and show you care.

Engage Actively with Your Audience

Don’t be a passive observer - actively engage with your audience. Schedule specific times in your day to immerse yourself in social media. Scroll through comments, answer questions, and address concerns head-on. Remember, responsiveness is key!

Foster Positive Interactions

Go beyond just responding to mentions. Take the initiative to seek out customer sentiment and participate in relevant conversations. Join social groups, engage in discussions, and share valuable content. By fostering positive interactions, you’ll build meaningful relationships with your audience.

Think of social media as a two-way street. Listen attentively to your customers, address their needs, and participate in the conversation. Doing so will transform your social media presence into a hub for customer engagement, ultimately boosting your brand image and customer satisfaction.

2. Content Marketing that Educates

Create valuable content to address common questions and concerns of your clients and prospects. It can position you as a trusted authority in the insurance field. Whether through blog posts, videos, or infographics, informative content can help demystify insurance topics, making them more accessible to your audience.

Companies that blog receive 97% more links to their website , highlighting the importance of content marketing.

3. Email Marketing Campaigns

Personalized email campaigns keep you in touch with your clients and prospects, providing updates, tips, and offers relevant to their needs.

Segmented email campaigns drive a 760% boost in revenue , demonstrating the effectiveness of targeted email marketing.

By dividing your email list into specific groups based on demographics, insurance needs, past interactions, or policy types, you can tailor your messages to resonate more deeply with each segment.

How to Segment Your Email List?

• Demographics: Age, location, gender, and occupation can influence what insurance products are relevant to your audience.
• Policy Type: Group clients based on the policies they hold—life, health, auto, commercial—to provide targeted advice and updates.
• Engagement Level: Identify clients who frequently open your emails versus those who don’t tailor your engagement strategy.
• Customer Lifecycle Stage: New leads, current clients, and long-term customers each have different needs and interests.

Image Source: PolicyBazaar

Types of Insurance Marketing Emails to Send

• Welcome Emails: For new clients or leads, a warm introduction and overview of how you can assist with their insurance needs.
• Educational Content: Tips on saving money on premiums, understanding insurance policies, or preparing for common risks.
• Policy Renewal Reminders: Personalized reminders that prompt action and offer to discuss potential policy updates or improvements.
• Exclusive Offers: Discounts or special offers on policies, available only to email subscribers.
• Newsletters: Regular updates to share valuable insights, company news, or relevant articles keep your audience informed and engaged.
• Feedback Requests: Encouraging clients to share their experiences or suggest improvements to build a customer-centric brand.
• Referral Programs: Inviting satisfied customers to refer friends or family in exchange for rewards or discounts.

Each email type serves a specific purpose in nurturing your relationships with clients and guiding them through their insurance journey. You can enhance client satisfaction, improve retention rates, and drive revenue growth by delivering relevant and valuable content.

Remember, the goal of your email marketing strategy should be to deliver the right message to the right person at the right time. It creates a personalized experience that resonates with each recipient.

4. SEO Optimization

Search Engine Optimization (SEO) increases your website’s visibility in search engine results, making it easier for potential clients to find you. By optimizing your site with relevant keywords, you can attract more qualified traffic.

Websites on the first page of Google receive 95% of web traffic, underscoring the value of SEO. Here are several strategies to enhance your SEO and boost your website’s ranking:

Keyword Research and Optimization

Use tools like Google Keyword Planner or SEMrush to find keywords related to insurance services that potential clients are searching for. Incorporate these keywords naturally into your website content, blog posts, and meta descriptions to improve relevance and visibility.

Quality Content Creation

Create and share high-quality, informative content that addresses the needs and questions of your target audience. This can include blog posts, industry reports, and helpful guides. Use keywords strategically. Include relevant keywords in your content, but focus on readability and providing value to your audience.

On-Page SEO

• Meta Descriptions and Title Tags: Write compelling meta descriptions and title tags that include your target keywords. These elements are critical for click-through rates from search results.
• URL Structure: Ensure your URLs are clean and user-friendly, and include keywords where appropriate.

Mobile Optimization

Ensure your website is mobile-friendly; a significant portion (64%) of searches are conducted on mobile devices. Moreover, improve your website’s loading speed on mobile devices to reduce bounce rates and enhance user experience.

Remember, SEO is a long-term investment, and consistency is key to achieving and maintaining high rankings in search engine results.

5. Networking and Referral Programs

Building a solid network of professionals and satisfied clients can lead to valuable referrals. Offering referral incentives can motivate clients to spread the word about your services. Referral marketing generates 3-5x higher conversion rates than any other channel.

Becoming a member of local business associations or chambers of commerce can lead to valuable networking opportunities. These groups often hold meetings, mixers, and other events where you can meet other business owners and community leaders. These connections can lead to referrals, partnerships, and other opportunities to grow your business.

6. Use Customer Reviews and Testimonials

Positive feedback from satisfied clients can significantly influence potential customers. Display reviews and testimonials on your website and social media to build credibility and trust. 88% of consumers trust online reviews as much as personal recommendations.

Here’s how to collect and leverage them effectively:

Ask Satisfied Clients

The simplest way to gather reviews is by asking your clients directly after you’ve provided them with service. Most happy clients are willing to share their positive experiences if asked.

Email Follow-Ups

After completing a service, send a follow-up email thanking your client for choosing your insurance services and kindly ask for a review. Include direct review links to your Google Business listing, Facebook page, or any other platform where you want to collect reviews.

Leverage Social Media

Encourage your followers to share their experiences by posting on your social media platforms. Engage with those who leave comments or reviews to show appreciation and encourage others to do the same.

Incentivize Reviews

Offer a small token of appreciation for clients who take the time to leave a review. Ensure it complies with the guidelines of the review platform to avoid the appearance of buying reviews.

Highlight Testimonials on Your Website

Once you’ve collected testimonials, showcase them prominently on your website. This can include a dedicated testimonials page or highlighted reviews on your homepage.

Respond to Reviews

Engage with both positive and negative reviews professionally. Thanking clients for positive reviews and addressing any concerns raised in negative reviews demonstrates your commitment to customer satisfaction.

7. Host Informative Webinars and Workshops

Free educational webinars and workshops on important insurance topics can attract potential clients by offering them valuable knowledge. This positions you as a helpful advisor, not just a salesperson. Webinars are reported to convert at a rate of up to 30% , making them a highly effective marketing tool.

Hosting free workshops or seminars on topics related to insurance can position you as a trusted local expert. These events provide value to the community by educating them on important issues like financial planning, health insurance options, or how to protect their property. It also allows you to introduce your services to an engaged audience gently.

8. Targeted Advertising

Online advertising platforms allow precise targeting based on demographics, location, and interests. By creating ads that speak directly to the needs of your target audience, you can increase the effectiveness of your marketing efforts. Targeted ads are twice as effective as non-targeted ads.

9. Interactive Tools and Resources

Tools like insurance calculators or quizzes engage users and provide personalized advice, making the buying process more interactive and tailored to individual needs. Websites with interactive content have been found to generate twice as many conversions compared to passive content.

10. Local Community Involvement

Participating in local events and initiatives can increase your visibility and brand awareness in the community. This grassroots approach to marketing can lead to more personal connections and business opportunities.

Here’s how you can effectively engage in local community involvement:

Sponsor Local Events

Sponsoring local events, such as charity runs, school fairs, or community festivals, can significantly boost your visibility. It’s an effective way to get your brand in front of a local audience in a positive light.

Plus, these events often offer direct interaction with community members, allowing you to build relationships and share information about your services in a relaxed, informal setting.

Participate in Community Projects

Getting involved in community projects, such as neighborhood cleanups or local beautification initiatives, shows that you care about more than just business. It’s about contributing to the community’s well-being, which can build goodwill and enhance your reputation as a socially responsible business.

Support Local Charities

Align with local charities by offering support, donations, or volunteer efforts to enhance your brand’s image and show your commitment to the community. Collaborate on fundraisers or community service projects to increase visibility and endear your brand to locals.

Engage with Local Media

Establish relationships with local media outlets to increase your chances of getting coverage for your community involvement activities. Whether through local newspapers, radio stations, or TV channels, media coverage can amplify your visibility and reinforce your image as an active and caring community member.

11. Stay Current with Industry Trends

The insurance industry is constantly evolving. Staying informed about new trends, technologies, and customer behavior insights can help you adjust your marketing strategies to remain competitive and relevant.

Technological Innovations

From artificial intelligence and machine learning to blockchain and telematics, technology is transforming how insurance products are designed, priced, and delivered. Keeping up with these technologies allows you to offer more personalized, efficient, and secure services, enhancing customer satisfaction and loyalty.

Regulatory Changes

The insurance industry is heavily regulated, and laws and regulations can change with shifting political landscapes. Understanding these changes ensures your marketing practices remain compliant, protecting your business and clients.

Market Trends

Emerging markets, new insurance products, and shifts in demand (like the rising need for cyber insurance) are all trends that can open new growth opportunities. By monitoring these trends, you can proactively adapt your product offerings and marketing messages to address market needs.

Competitive Landscape

Observing your competitors’ moves can provide valuable insights into what works and what doesn’t in your industry. This doesn’t mean copying their strategies but learning from them and finding innovative ways to differentiate your brand.

Strategies for Keeping Up with Trends

• Attend Industry Conferences and Seminars: These events are goldmines for learning about new technologies, regulatory updates, and market shifts. They also offer networking opportunities with peers and thought leaders.
• Subscribe to Industry Publications: Dedicated insurance and marketing publications can keep you informed about the latest news, research, and best practices.
• Join Professional Associations: Membership in professional associations can provide access to exclusive resources, educational materials, and industry insights.
• Leverage Social Media and Online Forums: Follow industry influencers, join professional groups on LinkedIn, and participate in discussions to stay connected with the pulse of the industry.
• Invest in Continuous Learning: Encourage your team to pursue certifications, take courses, and attend webinars to deepen their understanding of insurance products and marketing techniques.

12. Loyalty Programs

Implementing loyalty programs and rewarding clients for renewals in the insurance industry can significantly enhance client retention and encourage positive behaviors such as renewals, referrals, and consistent engagement.

According to Bond Brand Loyalty, 81% of consumers agree that a loyalty program makes them more likely to continue doing business with a brand.

Designing Your Loyalty Program

Craft a loyalty program that aligns with your client’s values and needs. Consider offering rewards not just for policy renewals and referrals but also for engaging with your content, attending events, or completing surveys.

The rewards could range from discounts on premiums and complimentary services to gift cards or exclusive access to industry events. The key is to offer value that resonates with your clients and enhances their experience with your brand.

Communicating the Benefits

Communicate the benefits of your loyalty program to your clients. Use your website, email newsletters, social media, and face-to-face meetings to explain how the program works and the specific rewards they can earn.

Highlighting real examples of rewards clients have received can also illustrate the program’s value and encourage participation.

Personalization and Flexibility

Personalize the loyalty experience by offering rewards catering to your client’s needs and preferences. Use data analytics to understand their behaviors and preferences, then tailor your rewards accordingly.

Additionally, providing options or tiers within your loyalty program can appeal to different segments of your client base, ensuring everyone finds value in participating.

Encouraging Referrals

Referrals are a cornerstone of growing your insurance business. Encourage loyal clients to refer friends and family by offering rewards for every successful referral. This will expand your client base and reinforce the trust and satisfaction of your current clients, as they are likely to refer only if they genuinely believe in the value of your services.

Image Source: Proper Insurance

Tracking and Adjusting

Implement a system to track participation and the effectiveness of your loyalty program. Monitoring which rewards are most popular and which incentives lead to the highest engagement can provide insights that help you refine your program over time.

Be open to feedback from your clients and willing to make adjustments to ensure the program remains appealing and relevant.

Celebrating Milestones

Recognize and celebrate milestones within the loyalty program. Whether it’s an anniversary of a client’s policy, a significant number of referrals made, or a high level of engagement with your services, acknowledging these milestones can make clients feel valued and deepen their loyalty.

13. Google Business Profile

Optimizing your Google Business Profile enhances your visibility in local search results, making it easier for potential clients to find and contact you. Businesses with complete Google listings are 7 times more likely to get clicks, leading to a purchase than incomplete ones.

Every connection matters in the insurance industry. Deliberate marketing strategies and broadening your digital footprint are essential for attracting more leads and closing more deals.

By implementing these 13 out-of-the-box insurance marketing ideas, you can get your brand up to capture the attention of a wider audience efficiently.

As you kick off your new insurance marketing efforts, the next step is to elevate your agency’s customer experience to new heights through online customer engagement platforms like DemandHub.

Discover how to transform your digital communications and boost sales using DemndHub in your insurance marketing strategy. Get your free trial or demo now .

What Are the Benefits of Insurance Marketing?

Insurance marketing offers many benefits, including increased visibility for your brand, enhanced customer engagement, and higher sales conversion rates. Effective marketing strategies help insurance agents stand out in a crowded market, establish trust with potential clients, and foster long-term loyalty.

Why Do Insurance Agents Need Marketing Strategies?

Having a solid marketing strategy is non-negotiable for insurance agents. The landscape is highly competitive, with clients having access to a wide range of options at their fingertips.

Marketing strategies enable agents to differentiate themselves, highlight their unique value proposition, and connect with potential clients meaningfully. Without a targeted approach to marketing, agents risk being overshadowed by competitors and missing out on opportunities to engage with their target audience.

What Are the Challenges that Insurance Agents Face in their Marketing Efforts?

Insurance agents encounter several challenges in their marketing efforts, including:

• Navigating Digital Marketing Complexities: With the vast array of digital marketing tools and platforms available, agents may find it overwhelming to identify the most effective channels for reaching their audience.
• Building Trust Online: Establishing trust with potential clients without face-to-face interaction can be challenging.
• Compliance and Regulation: The insurance industry is highly regulated, and marketing materials must comply with legal requirements, which can limit creative freedom.
• Competition: The market is saturated with agents and agencies vying for attention, making it difficult to stand out.
• Measuring ROI: Determining the return on investment for various marketing activities can be complex and time-consuming.

What Are the 7 Ps of Marketing in Insurance?

The 7 Ps of marketing, a framework for evaluating and re-evaluating marketing strategies, are particularly applicable in the insurance industry:

• Product: The insurance policies and coverage options offered.
• Price: The cost of insurance policies, including premiums, discounts, and payment terms.
• Place: How and where are insurance products distributed and sold, including online platforms, agent offices, or direct sales?
• Promotion: The strategies used to advertise and promote insurance products, such as digital marketing, traditional advertising, and referral programs.
• People: The agents, customer service representatives, and all personnel involved in providing service and support to clients.
• Process: The procedures and processes clients use to purchase insurance, file claims, and receive payouts.
• Physical Evidence: The tangible proof of insurance coverage, such as policy documents, that reassure clients.

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Global Insurance Industry Market

Report Code: FIN011A

Publish Date: Oct 2022

Publisher: BCC Publishing

Category: Finance

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• Report Overview

Table of Contents

Report highlights.

The global market for insurance was valued at $9.8 trillion in 2021 and is estimated to grow from $5.6 trillion in 2022 to $9.8 trillion 2027, with a compound annual growth rate (CAGR) of 12% for the period of 2022-2027.

Report Includes

• 39 data tables and 19 additional tables
• A comprehensive overview of the global markets for insurance products and services
• Analyses of the global market trends, with historic market revenue data for 2020 and 2021, estimates for 2022, and projections of compound annual growth rates (CAGRs) through 2027
• Coverage of the most important technological, economic, and environmental considerations in the insurance industry market
• Estimation of the actual market size and market forecast for insurance industry, and corresponding market share analysis based on the type of insurance, distribution channel, end user, and region
• Latest information on key market drivers and opportunities, industry shifts and regulations, and other demographic factors that will influence this market demand in the coming years (2022-2027)
• Insight into the major technology challenges, issues and risks, government regulations, recent developments, and COVID-19 impact on the global insurance industrymarket
• Updated information on the latest market developments, merger and acquisition deals, partnerships, collaborations and other strategic alliances within the global insurance industry
• Descriptive company profiles of the leading global players, including molina healthcare inc., ping an insurance, prudential plc and state farm.

Report Scope

The current report offers a detailed picture of the insurance market.

This report further analyzes the market based on insurance type, providing an analysis of life and non-life insurance. In addition, the report also analyzes the distribution channels for the insurance industry. Furthermore, a complete regional analysis of the market is also in the report.

Report Synopsis

Report Metrics	Details
Base year considered	2021
Forecast period considered	2022–2027
Base year market size	$5.1 billion
Market size forecast	$9.89 billion
Growth rate	CAGR of 12% from 2022 to 2027
Units considered	$ Millions
Segments covered	Type, Region, Distribution Channel, Country
Regions covered	North America, Europe, Asia-Pacific, and Rest of the World (RoW)
Countries covered	United States. (U.S.), Canada, France, Germany, Italy., United Kingdom (U.K.), Spain., Rest of Europe, China, India, Japan, Rest of Asia-Pacific
Key Market Drivers
Companies studied	ALLIANZ GROUP ANTHEM INC. ASSICURAZIONI GENERALI S.P.A. AXA CENTENE CORP. BERKSHIRE HATHAWAY INC. CHINA LIFE INSURANCE CO. LTD. CIGNA EUROPEAN SERVICES (UK) LTD. CVS HEALTH CORP. DAI-ICHI LIFE HOLDINGS INC. HUMANA INC. JAPAN POST HOLDING LIFE INSURANCE CORP. OF INDIA METLIFE INC. MOLINA HEALTHCARE INC. PEOPLE'S INSURANCE CO. (GROUP) OF CHINA LTD. MUNICH REINSURANCE CO. PING AN INSURANCE PRUDENTIAL PLC STATE FARM Analyst Credentials BCC Research Team possesses expertise and experience in life and physical science domains. They specialize in offering valuable business insights, including industry analysis, competitor intelligence, strategic and financial analysis, and opportunity assessment. The team has in-depth knowledge of various sectors, including healthcare, biotechnology, pharmaceuticals, IT, automation, advanced materials, and energy. They are proficient in qualitative and quantitative market intelligence providing clients with actionable insights. With a vast understanding of the competitive landscape, the team can support clients in making data-driven decisions to help them achieve a competitive edge in their respective markets. Title/Chapter Name Pages Member Price 103 Free Chapter- 1: Introduction 6 Free Chapter- 2: Summary and Highlights 4 Free Chapter- 3: Market and Technology Background 5 Free Chapter- 4: Market Dynamics 6 Free Chapter- 5: Impact of COVID-19 2 Free Chapter- 6: Global Insurance Market by Insurance Type 7 Free Chapter- 7: Global Insurance Market by Distribution Channel 11 Free Chapter- 8: Market Breakdown by Region 32 Free Chapter- 9: Competitive Landscape 4 Free Chapter- 10: Company Profiles 26 Free Related Reports Recent reports, top trending reports, health and medical insurance providers: global markets. 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Radiotherapy, Radiopharmaceuticals and Nuclear Medicine: Global Markets The global market for radiation therapy products and radiopharmaceuticals is expected to grow from $17.5 billion in 2024 and is projected to reach $31.3 billion by the end of 2029, at a compound annual growth rate (CAGR) of 12.3% during the forecast period of 2024 to 2029. Become A Member BCC Research offers a comprehensive library of reports, granting members unlimited access to data, insights, and market intelligence for informed business decisions, while actively supporting members in their evolving journeys and prioritizing high-quality, relevant topics based on continuous engagement with the research community. BCC Research emphasizes the importance of organizations leveraging highly customized market insights aligned with specific strategic business objectives through direct engagement with primary sources and proprietary forecasting models for profitable decision-making in maximizing growth opportunities and minimizing risks. The Venture Scorecard provides commercialization offices and decision makers with expert analysis, offering strategic insights crucial for aligning objectives with market realities at various stages of commercializing new products or evaluating investment opportunities, from opportunity assessment to growth planning. Innovation Spotlight Our industry experts offer strategic guidance to maximize the market potential of commercialized products, patents, and IP by providing insights into market trends, competitive dynamics, and effective positioning, using the Innovation Spotlight service for enhanced exposure to thought leaders and the wider community. Custom Research - FIN011A Download report overview - global insurance industry market. Complete the form below and someone from the BCC Research team will be in touch Talk to Our Analyst - FIN011A Join our mailing list for the latest report releases and upcoming event notifications. 781-489-7301 [email protected] Please select categories of interest: Search Check All The New Equation Executive leadership hub - What’s important to the C-suite? Tech Effect Shared success benefits Loading Results No Match Found Next in insurance: Top insurance industry issues in 2022 The insurance industry is no longer predictable. The business of insurance, which once was stable and predictable, isn’t that way anymore. Growth without sacrificing profitability is challenging, climate change is irrevocably impacting certain risk profiles, distribution needs have become truly omnichannel and customers expect products tailored just for them. All the while, technology has continued its relentless advance and an emerging player ecosystem is threatening to shake up customer acquisition. As a result, industry executives now have to make an array of deliberate and aggressive strategic choices to succeed. Incremental change or hoping to avoid change altogether are no longer viable options. Compounding the difficulty of addressing these challenges is how the COVID-19 pandemic accelerated them. Customer and employee expectations changed more in 18 months than they did in the previous two decades. This has put immense pressure on the industry and carriers have had to adjust practically—in some cases, literally—overnight. Even though the pandemic has ebbed and flowed, the pace of change has remained relentless. Commitment is an act, not just a word Despite disruption and the new entrants trying to take advantage of it, the good news for many carriers is that they still have a competitive advantage that others can’t easily replicate. There’s room in most market segments for multiple players, but because not all competitive levers are fully or equally available to everyone, insurers typically focus on one of the following five areas: 1 - digitization, data and integration; 2 - brand and distribution; 3 - superior, innovative products; 4- strategic partnerships; 5 - effective structuring. Unfortunately, while most insurers do try to focus on their strengths, they also typically underinvest in these areas and fail to act with urgency, resulting in a race to the middle. We tell clients that they need to fully fund and support their way to play and hold themselves accountable for the results. In other words, commitment without action won’t get you very far.  While carriers may have been able to get away with a fuzzier approach in the past, that is not the case today. Private equity, asset managers and other new entrants are moving quickly, with great focus and discipline, to capitalize on industry disruption. Companies that continue to work from three- to five-year timelines that are vague and lack strategic focus are likely to lose market share and perhaps even wind up as someone else’s acquisition. Companies that continue to work from three- to five-year timelines that are vague and lack strategic focus are likely to lose market share and perhaps even wind up as someone else’s acquisition. Real-life examples: Ways to play Leading carriers aren’t relying on past success. They’re defining new ways to remain relevant and grow. Data & Integration: Digital Simplification Operator Leverages advanced tech and data capabilities to create a seamless, digital-first experience from quote and sale all the way to claims. Features simplicity and competitive prices. Distribution: Ecosystem Orchestrator Creates an integrated ecosystem (typically via partnerships) that offers customers “more than just insurance,” focusing on distribution and product offerings to win at the point of sale. Products: Unmet Needs Customizer Develops innovative differentiated, and customized products to address unserved / underserved segments or new, emerging risks via advanced analytics and pay-as-you go pricing. Partnerships: Platform Services Innovator Extends core capabilities by offering products and services to other carriers, distributors or other adjacent businesses. Creates scale by funding differentiating competencies and experiences. Structuring: Economic Value Creator Employs a lean operations focus to compete competitively on price and enable investments in key strategic areas. What makes a winner? Based on our experience working with all segments of the industry, we’ve observed that most successful insurers in today’s environment have a few key traits. In particular, they: Say “no” to what doesn’t fit Define a strategic direction and say “no” to what doesn’t fit. Simply setting financial goals isn’t enough. Committing to a way to play, then continuing to do everything you did before while funding whatever else comes along, is  not  a strategic direction. Leaders know how to prioritize. Fully fund their strategy They don’t shortchange big bets or dilute key investments with allocations to less vital areas. Of note, they’re typically able to make these investments because they’ve implemented structural, financial and tax approaches that minimize their cost ratios. Get creative with products They’re able to identify new product categories (as opposed to just adding new features) and have the brand strength to deliver them. For example, early movers are designing products that take into account two increasingly important issues: Stakeholders’ environmental, social and governance (ESG) concerns and the still overlooked employer as distributor market for a wide variety of financial and service needs, particularly retirement and college savings and paying for childcare or elder care. Get involved in partnerships and make deals Get involved in partnerships and make deals to meet strategic goals. Inorganic strategies have a long history in the industry but have picked up steam recently as carriers focus on core competencies and enhancing technology. In fact, partnerships and deals have become a necessity for most carriers to enable their chosen ways to play. They take part in ecosystems and invest in InsurTech. Although most of these kinds of investments aren’t game-changers on their own, when they get the acquiring company closer to a strategic goal, they’re worth it. That said, the best ecosystems and InsurTech innovations in the world aren’t going to help you if they don’t align with your strategy or if you’re not executing your strategy properly. As carriers find new partners, technologies and business models that align to their core principles or strategic growth plan, they can test their value and determine whether or not to adopt the innovation or maintain the partnership. 60% of consumers don’t feel they’re financially confident or covered across their long-term security and emergency needs. Source: PwC/LIMRA 2020 research Technology platforms that drive strategy Even a clear and consistent strategy is going to founder if your technology can’t enable it. We haven’t spoken with a single business leader who doesn’t recognize that investments in new technologies are the best way to facilitate market access, risk selection and management, quality financial information and customer service capabilities. However, we’ve seen many carriers fail to stick to a coherent strategy beyond “digitization.” There’s often a lack of clarity and correspondingly nebulous goals about how these substantial investments relate to the business. The above discussion of funding a competitive advantage also applies here. Carriers should fully invest in ways that build on their strengths and hold the organization accountable for the results. At the risk of repeating ourselves, we’ve seen time and again that many carriers simply don’t do this. Customers (and employees) increasingly expect insurers to be as easy to work with as an online retailer—and new entrants are giving them exactly what they want. If you can’t, you’re going to lose business and employees. A truly strategic technology platform features: A core processing system A core processing system that efficiently issues policies and contracts, enables payments and keeps track of finances. You don’t need bells and whistles for their own sake, but you do need something that does the essential job of helping you achieve scale faster. Digital data and integration capabilities Digital data and integration capabilities that enable access to and understanding of your own data and from third parties to inform management decisions and enable new capabilities. Customer/user-facing systems The absolutely vital customer and user-facing systems that support your call centers, customer chat and walk-in locations. They enable carrier representatives to immediately determine client identities and service histories to quickly solve customers’ problems. Moreover, an effective integration layer facilitates quick incorporation of new partners and solutions into your digital capabilities. Reporting and compliance platforms Reporting and compliance platforms that provide high-quality data, facilitate accurate financial reporting and accounting and enable effective compliance. Cloud, because no insurer needs to—and, more importantly, probably shouldn’t—support its own infrastructure anymore. Those that do risk it being an impediment to operational flexibility. Practically everything in insurance eventually becomes a margin game, with the advantage going to the carriers that can scale effectively, drive out cost and achieve broad price competitiveness. Carriers with adaptable cores that can be quickly configured for new innovations—a key advantage of cloud technology—can achieve this scale faster. Changing customer expectations 2018 to 2021 Source: PwC 2018 and 2021 surveys of 6,000 insurance customers. The path forward None of this is easy, and no single company has mastered all of these ways to win. But, we’ve never seen a truly competitive insurer that didn’t at least:  Set and stick to clear goals.  Support business goals with a technology strategy that’s built on and integrates proprietary and third-party data.  Fully invest in and hold itself accountable for achieving 1 and 2.  Whatever your business focus—data and integration, brand and distribution, products, strategic partnerships or structuring—these three are absolutely essential. The ‘Next in insurance’ series The war for talent, esg considerations, the workforce, which brings your strategy to life and holds the key to the future of the business. Insurers feel insecure in the war for talent. They think — often rightly so  — that they lag behind other “sexier” industries in attracting and retaining the best people. However, recent changes in what employees expect of their employers and the nature of work itself offer insurers a great opportunity to level the playing field. Companies that proactively and convincingly demonstrate flexibility and offer meaningful career paths with ample room for development are showing that insurance can be as professionally and personally rewarding an industry as any. In other words, it’s time for insurers to play offense instead of defense. The increasing breadth and importance of ESG considerations, from investment strategy and underwriting to public perception The insurance industry has long paid close attention to environmental issues because they directly affect how carriers evaluate and price risk and pay out claims. But sustainability and governance are becoming equally important. For the former, insurers are experiencing increased scrutiny of their business models. For example, what’s the right balance between covering climate-related risks and underwriting initiatives that could increase those very same risks? Such sustainability concerns relate directly to governance issues. Insurance leaders now have to meet formal, increasingly detailed ESG reporting requirements covering everything from their investments to how they underwrite business. And investors, customers and the workforce are paying close attention. Download Next in insurance report Related content, winning the war for talent. This webinar tackles a key issue -- maybe the key issue -- facing the insurance industry: How can we attract, train and retain the talent that we need and that... The New Competitive Landscape Webcast Listen to our latest On-Demand Webinar featuring Andrew Robinson, CEO at Skyward Specialty Insurance Group, and Andy Cohen, COO, Snapsheet... Insurers can win the war for talent—if they tell their story PwC’s Next In Insurance describes how insurers can win the war for talent in an insurance industry talent crisis. Insurance: US Deals 2024 midyear outlook While macroeconomic factors caused deal volume to slow, insurance dealmaking remained active in the last 6 months, driven by 4 announced megadeals. Insurance Leader, Consulting Solutions, PwC US Consulting Principal, PwC US Francois Ramette Principal, Insurance Consulting, Strategy&, PwC US Thank you for your interest in PwC We have received your information. Should you need to refer back to this submission in the future, please use reference number "refID" . Required fields are marked with an asterisk( * ) Please correct the errors and send your information again. By submitting your email address, you acknowledge that you have read the Privacy Statement and that you consent to our processing data in accordance with the Privacy Statement (including international transfers). If you change your mind at any time about wishing to receive the information from us, you can send us an email message using the Contact Us page. © 2017 - 2024 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. Data Privacy Framework Cookie info Terms and conditions Site provider Your Privacy Choices 101 Sales, Marketing & Agency Management Ideas 2024 Produced by: Insurance Journal Format: Special Report Published: August 19, 2024 Topics: Agency Growth , Agency Management and Sales & Marketing Curated by Insurance Journal editor Andrea Wells, this compilation of sales and marketing ideas has something important for you and everyone on your team. Content Marketing Strategies Ideas to Help You Find Your Niche Tips to Leverage Tech, Data & AI And much more! It’s a must-read super-list of successes, suggestions, and pearls of wisdom from agents, insurers, consultants, associations, vendors, CSRs, and CEOs alike. End the year strong and excel in 2025 with these great ideas in hand! Price: $14.95 Your Price: Free Special Report Featured reports. Top 100 Independent P/C Agencies 2024 Special Report Insurance Journal Five Ways to Grow Your Agency Business in 2024 Whitepaper bolt The Ultimate Guide for Expanding into Commercial Lines Whitepaper Smart Choice New Research You are using an outdated browser. Please upgrade your browser to improve your experience. Vietnam Insurance Industry - Governance, Risk and Compliance Best Price Guarantee Length Publisher Published Date SKU from $950 102 Pages GBDT19099734 Best Price Guarantee Price from $950 Length 102 Pages Publisher Published Date SKU GBDT19099734 Table of Contents Description Search Inside Report Related Reports An overview of the insurance regulatory framework in Vietnam. The latest key changes, and changes expected in the country’s insurance regulatory framework. Key regulations and market practices related to different types of insurance product in the country. Rules and regulations pertaining to key classes of compulsory insurance, and the scope of non-admitted insurance in the country. Key parameters including licensing requirements permitted foreign direct investment, minimum capital requirements, solvency and reserve requirements, and investment regulations. Details of the tax and legal systems in the country. 100% FDI is permitted in the Vietnamese insurance industry. Motor-third party liability insurance, aviation third-party liability insurance, and professional indemnity insurance for lawyers, notaries, auditors, engineers, architects and insurance brokers are the key classes of compulsory insurance in Vietnam. The placement of non-admitted insurance is not permitted in the Vietnamese insurance industry with few exceptions. Composite insurance is not permitted in the Vietnamese insurance industry. The report covers details of the insurance regulatory framework in Vietnam. The report contains details of the rules and regulations governing insurance products and insurance entities. The report lists and analyzes key trends and developments pertaining to the country's insurance regulatory framework. The report analyzes the rules and regulations pertaining to the establishment and operation of insurance businesses in the country. The report provides details of taxation imposed on insurance products and insurance companies. Provides FAQ-style analytical insights comprising 129 knowledge elements on insurance compliance applicable to the country. Gain insights into the insurance regulatory framework in Vietnam. Track the latest regulatory changes, and expected changes impacting the Vietnamese insurance industry. Gain detailed information about the key regulations governing the establishment and operation of insurance entities in the country. Understand key regulations and market practices pertaining to various types of insurance product. Vietnam Legislation Overview Supervision and Control Legislation Compulsory Insurance Non-Admitted Insurance Regulations Company Registration and Operation License Foreign Dire Liechtenstein Insurance Industry - Governance, Risk and Compliance Dominica insurance industry - governance, risk and compliance, indonesia insurance industry - governance, risk and compliance, algeria insurance industry - governance, risk and compliance, russia insurance industry - governance, risk and compliance, nicaragua insurance industry - governance, risk and compliance. $950 $1,425 $1,900 Research Assistance Learn how to effectively navigate the market research process to help guide your organization on the journey to success. Other tasks Printer format Order by fax Currency converter Request a Free Sample Samples provide examples of tables, charts, and topics included in this report. Your sample will be emailed to the address provided. 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Generative AI in BFSI Market "Smart Strategies, Giving Speed to your Growth Trajectory" Generative AI in BFSI Market Size, Share & Industry Analysis, By Application (Fraud Detection, Risk Assessment, Customer Experience, Algorithmic Trading, and Others), By End-User (Banks, Insurance Companies, and Financial Service Providers), and Regional Forecast, 2024 – 2032 Last Updated: August 22, 2024 | Format: PDF | Report ID: FBI110048 Segmentation Methodology Request Sample PDF KEY MARKET INSIGHTS The global generative AI in BFSI market size was valued at USD 1.01 billion in 2023. The market is projected to grow from USD 1.38 billion in 2024 to USD 13.57 billion by 2032, exhibiting a CAGR of 33.1% during the forecast period. Generative AI in BFSI (banking, financial services, and insurance) refers to applying advanced artificial intelligence techniques, particularly those involving generative AI models, to create, analyze, and optimize financial products, services, and operations. Generative AI technology can automatically generate financial reports, investment summaries, and market analysis, saving time and reducing manual errors. Moreover, generative AI in BFSI can ensure that transactions and operations comply with regulatory standards by continuously monitoring and analyzing data. In addition, AI is capable of generating accurate and timely reports, reducing the burden of compliance and minimizing errors. In the scope of work, we have involved solutions offered by companies, such as Accenture, SAS Institute, Inc., DataRobot, Inc., Microsoft, IBM Corporation, NVIDIA Corporation, Salesforce, Inc., and others. Generative AI in BFSI Market Trends Growing Demand for Enhanced Customer Service and Personalization Drives Market Growth The use of AI-powered virtual assistants and chatbots is growing in the banking sector. These tools leverage Natural Language Processing (NLP) and generative models to provide personalized customer interactions, answer queries, and offer financial advice. Generative AI is being used to design personalized financial products and services, such as customized insurance policies and investment portfolios, based on individual customer data and preferences. Generative AI in BFSI simulates economic scenarios and conducts stress tests, helping to assess and mitigate risks under various conditions. Moreover, generative AI in BFSI innovates and develops new products, such as dynamic pricing models for insurance and novel financial instruments. These factors play an important role in increasing the adoption of generative AI in BFSI, fueling market growth during the forecast period. Request a Free sample to learn more about this report. Generative AI in BFSI Market Growth Factors Increased Need for Operational Efficiency and Cost Reduction Among Financial Institutions Fuels Market Growth Generative AI in BFSI automates routine tasks, such as data entry, report generation, and compliance checks, reducing manual effort and operational costs. AI enhances the speed and accuracy of data processing, allowing financial institutions to handle large volumes of transactions and data more efficiently. Further, financial institutions are under constant pressure to reduce operational costs. Generative AI in BFSI offers cost-saving solutions by automating processes and optimizing resource allocation. AI solutions are scalable and can be easily adapted to changing business needs, providing flexibility in managing costs and resources. In addition, financial institutions are increasingly partnering with fintech companies and technology providers to integrate AI solutions, driving innovation and expanding capabilities. These factors play a vital role in driving the global generative AI in BFSI market growth. RESTRAINING FACTORS Data Security Concerns and Lack of Skilled Workforce May Hinder Market Growth Financial institutions deal with highly sensitive and personal data. Ensuring the privacy and security of this data when using AI solutions is a major concern. The use of generative AI can introduce new cybersecurity vulnerabilities. Financial institutions must safeguard AI systems against cyber-attacks, which requires significant investment in security measures. Moreover, a shortage of skilled professionals with expertise in AI, data science, and machine learning makes it difficult for financial institutions to find and retain the necessary talent. In addition, training existing staff to use and manage AI technologies effectively requires time and resources. Thus, these factors are expected to hinder the market for generative AI in BFSI. Generative AI in BFSI Market Segmentation Analysis By application analysis. Growing Need for Real-Time Fraud Detection in Banking Sector Fueled Segment Growth Based on application, the market is divided into fraud detection, risk assessment, customer experience, algorithmic trading , and others (portfolio optimization). The fraud detection segment captured a larger share of the market in 2023. Generative AI can process and analyze data in real-time, immediately detecting and responding to suspicious activities. This is crucial for preventing fraud before it results in significant financial loss. Generative models can continuously learn and adapt from new data, improving their detection capabilities over time and staying ahead of evolving fraud techniques. AI can generate synthetic datasets to simulate various fraud scenarios, helping to train and improve detection models, especially for new and rare types of fraud. The algorithmic trading segment is expected to grow at the highest CAGR during the forecast period, as automating trading processes reduces the need for manual intervention, lowering operational costs and human error. By optimizing trade execution, generative AI can minimize transaction costs and slippage, leading to more cost-effective trading. To know how our report can help streamline your business, Speak to Analyst By End-User Analysis Increasing Focus on Adoption of Chatbots and Virtual Assistants in Banks Boosted Segment Growth Based on end-user, the market is categorized into banks, insurance companies, and financial service providers. The banks segment captured the maximum share of the market in 2023. Generative AI powers banking services with sophisticated chatbots and virtual assistants that handle customer inquiries, provide account information and offer financial advice 24/7. This reduces wait times and improves customer satisfaction. AI can analyze customer data to provide personalized product recommendations and financial advice, enhancing the customer experience and fostering loyalty, which is vital in boosting segment growth. The financial service providers segment is predicted to experience the highest CAGR over the forecast period. AI assists these providers in assessing various risks, including credit, market, and operational risks, by analyzing large datasets and identifying potential risk factors. Additionally, AI automates the monitoring and reporting of compliance activities, ensuring adherence to regulatory requirements and reducing the risk of non-compliance. Thus, they are expected to fuel the segment growth in the coming years. REGIONAL INSIGHTS The global market is segmented based on region into North America, Europe, Asia Pacific, South America, and the Middle East & Africa. North America Generative AI in BFSI Market Size, 2022 (USD Billion) To get more information on the regional analysis of this market, Request a Free sample North America held the largest generative AI in BFSI market share in 2023. AI helps financial institutions in North America assess various types of risks, including credit, market, and operational risks, by analyzing large datasets and forecasting potential risk scenarios. Generative AI automates compliance processes, ensuring institutions adhere to regulatory requirements and reducing the risk of fines and penalties. Furthermore, market players operating in the region are engaged in partnerships to develop generative AI tools for use in the banking sector. For instance, In May 2024 , Accenture and Oracle extended their partnership to help clients boost their adoption of generative AI in BFSI. Asia Pacific is anticipated to grow at the highest CAGR over the projected period. China, Japan, Singapore, and Australia, are becoming fintech innovation hubs, fostering the development and adoption of AI technologies in the financial sector. Several countries in the region have established regulatory sandboxes that allow financial institutions to experiment with AI-driven solutions in a controlled environment, encouraging innovation while ensuring compliance. For instance, In October 2023 , OCBC Bank in Singapore bought a six-month generative AI chatbot trial. This tool helped them with a 50% productivity lift, translation, streamlining writing and research activities. Moreover, generative AI enhances trading strategies by analyzing market data, identifying trends, and executing trades with high precision, thereby improving investment performance. The market in Europe is set to rise at a significant CAGR in the coming years. European financial institutions are leveraging AI-driven chatbots and virtual assistants to handle customer inquiries, provide financial advice, and perform routine transactions, resulting in improved customer satisfaction and reduced operational costs. Further, many traditional banks in Europe are partnering with fintech companies to integrate generative AI solutions, leveraging the agility and innovation of fintechs. In addition, there is a significant investment in AI research and development within Europe, supported by initiatives from the European Union and national governments. The Middle East & Africa is predicted to witness remarkable growth in the coming years. AI helps financial institutions in the region improve the accuracy of credit scoring models by incorporating a broader range of data points, leading to a more reliable assessment of creditworthiness. Moreover, the market is increasing steadily in South America, and financial institutions are increasing their investments in AI technologies to stay competitive and meet the evolving demands of customers. For instance, According to an industry survey, in April 2024, 54% of banks say they are already utilizing generative AI technology, as they are highly customizable and adaptable to meet the specific needs of businesses. KEY INDUSTRY PLAYERS Top Companies Focus on Partnership and Acquisition Strategies to Increase Their Analytics Solutions Globally Prominent players implement several tactics to boost their competitiveness in the market. Leading companies offer industry-specific solutions to boost their geographical reach globally. They emphasize mergers and acquisitions with local companies to uphold control across regions. Major players introduce novel solutions to expand their consumer base. An increase in constant R&D investments for product innovations is enhancing market expansion. List of Top Generative AI in BFSI Companies: Accenture (Ireland) SAS Institute, Inc. (U.S.) Quantifind (Germany) Microsoft (U.S.) OpenAI (U.S.) DataRobot, Inc. (U.S.) NVIDIA Corporation (U.S.) Google LLC (U.S.) IBM Corporation (U.S.) Salesforce, Inc. (U.S.) KEY INDUSTRY DEVELOPMENTS: March 2024: J.P. Morgan Chase & Co. launched IndexGPT, an AI-powered tool built to offer investment advice to retail clients in Latin America. This tool analyzes and selects financial assets to fulfill customers' needs. February 2024: Mastercard launched a novel generative AI model designed to augment banks' ability to detect suspicious transactions across its network. This model is anticipated to boost fraud detection rates by up to 20%. February 2024:   KakaoBank, South Korea’s mobile-only bank, developed an Artificial Intelligence (AI) lab to offer AI-powered services. It focuses on Research and Development (R&D) activities for new financial services. September 2023: Temenos launched a secure solution enabled with Generative Artificial Intelligence technology for banks. This solution categorizes customers’ banking transactions and helps banks provide personalized insights and recommendations. September 2023: Emirates NBD, a bank operating in the MENA region, plans to adopt generative AI tools with the help of McKinsey & Company. The company helps the bank to design and pilot generative AI use cases across the business. REPORT COVERAGE The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years. To gain extensive insights into the market, Request for Customization Report Scope & Segmentation 2022-2032 2023 2024 2024-2032 2022 CAGR of 33.1% from 2024 to 2032 Value (USD Billion)                       Frequently Asked Questions The market is projected to reach USD 13.57 billion by 2032. In 2023, the market was valued at USD 1.01 billion. The market is projected to grow at a CAGR of 33.1% during the forecast period. By end-user, banks are expected to lead the market. Increased need for operational efficiency and cost reduction among financial institutions fuels market growth. Accenture, SAS Institute, Inc., DataRobot, Inc., Microsoft, IBM Corporation, NVIDIA Corporation, and Salesforce, Inc. are the top players in the market. North America is expected to hold the highest market share. By application, algorithmic trading is expected to grow with the highest CAGR during the forecast period. STUDY PERIOD: 2022-2032 BASE YEAR: 2023 HISTORICAL DATA: 2022-2022 NO OF PAGES: 120 Personalize this Research Granular Research on Specified Regions or Segments Companies Profiled based on User Requirement Broader Insights Pertaining to a Specific Segment or Region Breaking Down Competitive Landscape as per Your Requirement Other Specific Requirement on Customization Related Reports Generative AI Market Internet of Things (IoT) in BFSI Market Biobanking Market Digital Payment Market “We are quite happy with the methodology you outlined. We really appreciate the time your team has spent on this project, and the efforts of your team to answer our questions.” “Thanks a million. 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It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.” +1 424 253 0390 (US) +44 2071 939123 (UK) +91 744 740 1245 (APAC) [email protected] Request Sample The global generative AI in BFSI market size was valued at $1.01 billion in 2023 & is projected to grow from $1.38 billion in 2024 to $13.57 billion by 2032 Read More at:- Harnessing the potential of data in insurance In September 2016, AIG and Hamilton Insurance Group announced a joint venture with hedge fund Two Sigma to form Attune, a data and technology platform to serve the $80 billion U.S. small and midsize commercial insurance market. Through Attune, the companies are seeking to transform the small commercial segment by harnessing data, artificial intelligence capabilities and advanced modeling techniques. Attune will partner with brokers, agents and other intermediaries to streamline the pricing, selection and underwriting of insurance for small business owners. Stay current on your favorite topics Insurers have historically collected a wealth of data, but they have been slower to monetize this asset—by creating new business lines or models to capture the value of data and analytics. As more insurance consumers move online to interact, compare products and prices, and make purchases, the volume of available data is increasing exponentially. Even more significantly, powerful new analytics technology enables insurers to use that data in ways they had not previously considered. However, many insurers face organizational challenges to becoming data-driven companies. Others are waiting for business opportunities to emerge before enhancing their analytics capabilities. As a consequence, insurers have lagged behind other industries in their investment in and adoption of analytics. As first movers among insurers create new business models and seek to harness the potential of their data, those that wait will be at a significant competitive disadvantage. To become a data-driven insurance organization, firms must rethink their approach to building and managing data and analytics assets and develop distinctive go-to-market capabilities that allow them to offer clients data-centric solutions. New technology, new opportunities The explosion in available customer data (both personal and commercial), the growth in analytics technologies and the rapidly declining cost of computing power and data storage are prompting companies to invest in data analytics as a means to innovate. Forward-thinking leaders across industries are pursuing opportunities to create data-driven businesses in core and adjacent markets. 1 1. For more on how analytics is shaping a range of sectors, see “ The age of analytics: Competing in a data-driven world ,” McKinsey Global Institute, December 2016. United Healthcare’s subsidiary, Optum, monetizes its proprietary consumer data and offers technology, consulting, and other services to providers, payors, government agencies, and life science organizations. Caterpillar’s investment in Uptake, a predictive maintenance platform, allows Caterpillar to tap a quintillion bytes of data to help customers make real-time maintenance decisions that can dramatically reduce the costs of ownership and operations. Such examples have spurred early movers in the insurance industry to employ analytics across functions such as marketing and distribution, underwriting and claims. In addition to traditional data aggregators such as Acxiom, Epsilon, and Experian, carriers are using new online data sources such as Argus, Datalogic, DemystData, and specialty providers such as Judy Diamond and ATTOM Data Solutions to create 360-degree views of consumers and channels and identify new opportunities in several ways. Would you like to learn more about our Financial Services Practice ? Enhancing existing business models. Carriers are using data analytics to radically redefine their role by providing agencies with the tools to integrate data-driven decision making into areas such as cross-selling and reducing customer churn. These analytics tools spotlight the highest-value clients and high-potential leads so agents can invest resources more efficiently, predict customer churn more accurately to help improve retention, and generate broker-peer comparison analytics to identify additional sales opportunities. Strengthening channel relationships. Carriers are using data analytics to strengthen broker relationships. AXA’s EB360 platform, for example, offers a suite of analytics-powered tools to help brokers track the status of applications, manage compensation, and commissions and monitor progress on business goals. The tools, which are optimized to minimize data entry and enable rapid quoting, help brokers manage their business more effectively, and thus strengthen the broker-carrier relationship. Changing relationships with consumers. Insurers are fundamentally changing their relationship with consumers through the use of real-time monitoring and visualization. Consumers who agree to let insurance companies track their habits can learn more about themselves, while insurers can use the data to influence behavior and reduce risks. In auto insurance, for example, telematics are being used to monitor consumer driving habits in real time. By harnessing the resulting insights, insurers can offer usage-based policies and determine claims liability easily and accurately. Redesigning products. The Climate Corporation is using data and analytics to redefine the crop insurance market. The company uses data on weather patterns, soil characteristics and other key crop attributes at the field level to reduce farmers’ risks by designing policies that protect farmers from losses due to weather and other adverse events. Creating new business models. Sonnet, Canadian insurer Economical’s entrance into the direct channel, relies on a “data hub” to allow consumers to efficiently obtain online quotes and bind coverage for homeowner’s and auto insurance. The data hub quickly aggregates information from numerous databases to streamline the buying experience. At most insurers, consumers must answer more than 20 question to get an auto insurance quote; Sonnet requires fewer than 10. The approach appeals to tech-savvy consumers with relatively straightforward insurance needs, while those seeking more assistance with their insurance decisions can purchase through Economical’s broker partners. Establishing new adjacent businesses. A large commercial insurer has formed partnerships to offer policyholders just-in-time solutions such as the maintenance of heating, ventilation and air-conditioning equipment in commercial buildings. The solutions are based on monitoring and diagnosing vibration and sound patterns to detect declining performance and predict failures, which reduces the total cost of ownership. Increasingly, carriers are creating entirely new business models and disruptive offerings that generate non-risk, fee-based income. These “data as a business” models allow insurers to take advantage of their vast data pools and existing investments in data and analytics to offer unique data-driven insights to partners and end customers. The data-driven insurer: A journey in five phases The arguments for harnessing the power of data and analytics are convincing. However, the question often asked by insurance executives is, “Where and how do we start?” Insurers should follow a five-phase approach to design, launch and successfully manage a data analytics business (exhibit). Phase 1—Define aspiration and set vision The first step in shaping a “data as a business” strategy is for an organization’s senior leaders to define a compelling aspiration for the new business. Given the enormous economic potential the data hold, the aspiration should be bold and include business-backed, strategic use cases. A rallying cry for the organization could be, “Through launching a new data business, we expect to radically redefine the homeowner’s insurance market and double our market cap in three years.” Creating a yardstick to measure progress will ensure that the organization is thinking boldly enough. A high-level business and economic model based on the aspiration should also be developed during this phase. Throughout the following four phases, these elements will be pressure-tested and adjusted as appropriate. With the aspiration set, senior leaders must determine the most appropriate course to mobilize the organization to pursue it. This task includes appointing and visibly backing a leader to drive the next four phases. Phase 2—Evaluate assets, capabilities, and value-creation opportunities With the aspiration and strategic use case as the foundation, insurers must next determine which of their assets they can harness to build the capabilities required to achieve the strategic use case. This process includes not only understanding the types and value of existing data but also building the analytical and business capabilities needed to transform raw data into valuable insights for partners and customers. Understanding the ecosystem of analytics partners is critical to generating impact from analytics. Carriers should identify best-in-class companies that deliver impact through data, analytics, and insights across the industry value chain. Equally important is finding “white spaces” in the market where no solutions exist. The key here is to understand how to create value in these opportunity areas and which analytical capabilities matter most to the solution. For example, partners to evaluate can include those with: Proprietary data sets, machine-learning models, and approaches to continuously improving the model Flexible data and analytics infrastructure to execute high-priority use cases Tools that allow customers to efficiently access, understand, and act on data and insights Go-to-market capabilities including commercializing and pricing high-impact analytical solutions Capabilities to quickly make improvements to meet customers’ changing needs and stay ahead of competitors At the conclusion of Phase 2, management should align on the data assets and capabilities that best fit the strategic use case, the gaps that will need to be addressed and the high-level business case. To rally stakeholders, leaders need a compelling reason for the changes they intend to make, and must clearly describe the impact that analytics can have on the organization, its clients, and employees. The key challenge is to ensure that these assets link clearly to business value; without this connection, the resulting assets will have no real impact. Phase 3—Define specific use cases and business model Monetization business models. Organizations are exploring a number of business models to monetize data and deliver against business-backed use cases. These models range from providing raw data to providing insight-based consulting solutions and services to customers and channel partners. Across industries, five categories of business models are emerging (Exhibit A). In insurance, some early movers are aspiring to develop “utilities” by taking advantage of their size and access to a disproportionate share of data to create solutions that improve industry economics and firms’ ability to serve clients. For example, Aon’s Global Risk Insight Platform (GRIP) contains a proprietary database of insurance industry placement data, a source of insights across carriers, industries and products from individual transactions to global trends. This collection of data enables Aon to benchmark similar risks worldwide, including pricing information, to help clients evaluate performance and anticipate shifts in the market. Insurance executives must consider many factors when exploring potential business models, such as the use cases, the ultimate customer value proposition, the specific business problems being addressed, and the profit formula (for example, how much profits depend on quickly achieving scale). In data-centric business models, a key factor is data quality and how much processing will be required to make the information usable. In general, moving from the data provider model toward the others requires more processing of the underlying raw data, and hence higher levels of investment. The good news is that the more companies refine the data, the more value is created for end customers and the higher the resulting pricing power. To get started, management teams should evaluate potential models based on the data that can be monetized with little additional processing (for example, data provider) versus putting all the organization’s efforts behind a longer-term play (for example, full solution provider). The next step is defining specific use cases and associated customer value propositions—in other words, the building blocks of the aspiration and strategic use case. Where applicable, management should consider further refining the list of potential use cases through market research with potential partners and customers. This exercise gives the team a clearer understanding of potential demand for each use case and the primary monetization mechanisms (for example, price premiums for current products or incremental subscription fees for new data products). As building the necessary capabilities might also require partnerships or acquisitions, insurers should conduct the external assessment with an eye toward this possibility. This assessment can help to identify potential business models (see sidebar, “Monetization business models”). Time for insurance companies to face digital reality Phase 4—conduct pilots. The team proves the value of the new business by piloting two or three minimum viable products (MVPs). Carriers should take an iterative, test-and-learn approach to pilots, with each lasting no more than 8 to 10 weeks. It is important to keep the scale of these pilots manageable and not attempt to perfect final offerings. Also, metrics to gauge a pilot’s success should include a mix of learning and financial impact (with more emphasis on the former) as well as test-versus-control experiments where applicable to measure the incremental value delivered by analytics. Phase 5—Establish new business unit and scale operations Scaling successful prototypes and establishing foundational capabilities by recruiting talent and building the “data factory” will position an insurer to formally launch the new venture and begin the scaling process. The new venture will call for new roles in the organization, including not only data scientists who can analyze big data and solution architects to manage the delivery road map, but also experts who can translate business needs into analytics language. As the data-driven business matures, firms should explore establishing a new branded unit based on its capabilities and revenue growth projections. Insurers should also establish and manage key metrics to assure implementation is on track and that the business unit is delivering anticipated value. The primary focus should always be on value delivered and on investments based on clear value realization milestones. Building a data-driven business is often a multiyear journey requiring parallel efforts in such areas as data and analytics modeling and business building, along with a heavy customer engagement and go-to-market component. Implementing an agile cross-functional operating model Developing a data monetization business calls for strong go-to-market capabilities. Insurers must quickly develop the data analytics offerings, conduct tests with real customers, refine them in quick iterations, and price solutions based on the value delivered and the customer’s willingness to pay. For most insurance carriers, this approach will represent a change from their traditional way of operating. However, leading digital companies around the world are using such agile approaches to deliver business and customer value quickly and effectively. Carriers should consider taking the following actions: Get close to customers and collaborate with them on solution design. Instead of relying on the judgment of select stakeholders such as sales executives or on market research, insurers should base each step of a solution’s design and development on active customer engagement and feedback. This focus should also help inform the value at stake for customers and their willingness to pay. Create cross-functional teams that own well-defined business and customer outcomes. Typical insurance carrier silos such as sales and marketing, product, IT, finance, and HR create significant coordination overhead. Dedicated cross-functional teams (preferably with dedicated resources) can own the solution end to end and focus on customer outcomes. Adopt a test-and-learn approach and focus on launching in weeks rather than months. Rather than aiming to build feature-rich, comprehensive solutions that take months and years to design, develop, and launch, carriers should focus on quickly delivering an MVP followed by subsequent releases to expand and improve on features, functionality, and reach. Each release should be based on meeting a set of milestones and success criteria agreed upon in advance. Since this approach to developing and running a business represents a sharp break for most carriers, executives should consider establishing the new business so that it does not get burdened by the larger organization’s requirements and processes. For example, a new business will need to attract different talent profiles and develop unique partnerships, so established processes and lead times (for instance, hiring processes) might not be effective. Senior leaders should proactively think about addressing these issues while building momentum, generating excitement, and celebrating successes. The exploding volume of data available to insurance carriers is giving rise to new business models, revenue streams, and enormous opportunities to increase value. Embarking on the journey to monetize data requires insurers to rethink their approach to building and managing data and analytics assets and to develop distinctive go-to-market capabilities to bring new data-centric offerings to their clients. Executives that can manage investments in analytics while identifying new business lines can capture significant rewards. Ari Libarikian is a senior partner in McKinsey’s New York office, where Ani Majumder is an associate partner; Kia Javanmardian is a partner in the Washington, DC, office, where Doug McElhaney is a vice president. The authors wish to thank David Rose for his contributions to this article. Explore a career with us Related articles. 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