IoT Insurance Market by Insurance Type (Warranty Insurance, Pension Insurance, Cyber Insurance, Life Insurance, Property & Casualty Insurance, Health Insurance, Others); by Application (Connected Home, Connected Car, Connected Health, Commercial Lines, Others); by End-use (Automotive, Retail, Industrial, Residential, Healthcare, Logistics, Others); and by Region (North America, Europe, Asia Pacific, Latin America, MEA) - Global Forecasts 2022 to 2027

The global IoT Insurance market gathered revenue around USD 20.4 billion in 2021 and market is set to grow USD 453.7 billion by the end of 2027 and is estimated to expand at a modest CAGR of 60.9% during the prediction period 2022 to 2027.

IoT insurance refers to the use of IoT devices through insurance agencies to collect, transmit, and share important information of insurers. Moreover, IoT devices assist insurance providers to enhance their knowledge associated with risk management as well as enhancing the productiveness of personnel and organizations. Furthermore, it offers various different advantages to end-users, which encompass improved claim management service, immediate risk management service, and decrease operating cost of the company throughout claim settlement management services.

Global IoT Insurance Market Dynamics:

The increasing awareness regarding IoT technology due to the various advantages such as scalability, flexibility, security, and recovery are several important factors that are expected to propel the demand for the IoT insurance market during the forecast period. Moreover, increasing technological advancements in IoT devices as well as several enterprises are interested in the integration of customized services are other essential factors that influence the adoption of IoT technology across the globe. For instance, in February 2019, Monnit Corporation (U.S.) launched the ALTA insurance programme which promotes collaboration with insurers and leverages Monnit’s award-winning ALTA® wireless sensor platform. ALTA Insure allows insurers to differentiate themselves by offering a more complete loss-management solution. The platform can also assist insurers to decrease rates in an increasing number of competitive market. 

The report also provides an in-depth analysis of IoT insurance market dynamics such as drivers, restraints, opportunities, and challenges

Drivers

• Increasing adoption of the Internet of Things (IoT) in developed and developing economies
• Reduction in premium and risk-related costs
• Increase in adoption of cloud platform

Restraints

• Communication standards and data privacy concerns

Opportunities

• Increase in investments in IoT startups

Challenges

• Problems posed by legacy systems

Report Coverage

Based on the application, the connected car of IoT insurance market is expected to hold the largest market share during the forecast period owing to the increasing integration of IoT-enabled sensors in the vehicles

Based on the application, the IoT insurance industry has been segmented into the connected home, connected car, connected health, commercial lines, and others. The connected car of IoT insurance market is expected to hold the largest market share during the forecast period owing to the integration of IoT-enabled sensors in the vehicles. Moreover, the real-time tracking and control of data from cars play a significant role in the growth of the segment of the connected car of the IoT insurance industry during the forecast period.

Based on the end-use, the automotive segment of IoT insurance market is growing at the highest CAGR during the forecast period due to the increasing implementation of telematics and Advanced Driver-Assistance Systems (ADAS) in the vehicles

Based on the end-use, the IoT insurance industry is segmented into automotive, retail, industrial, residential, healthcare, logistics, and others. The automotive segment of IoT insurance market is growing at the highest CAGR during the forecast period due to the increasing implementation of telematics and Advanced Driver-Assistance Systems (ADAS) in the vehicles. Moreover, the rising use of V2X connected vehicles technology for the intelligent and collaborative IoT data flow is expected to boost the growth of these segments during the forecast period.

Based on region, North America is expected to dominate the IoT insurance market during the forecast period

North America is expected to dominate the IoT insurance industry during the forecast period. The growth in the region can be attributed to the growing awareness and rapid implementation of IoT in numerous sectors such as automotive, retail and other. Moreover, the increasing number of IoT startups is one of the prominent factors that influence the IoT insurance market growth. For instance, in June 2020, Planck, a US-based startup offers an AI-based insurance underwriting technology platform raised USD 16 Mn in a Series B funding led by Team8 Capital and other investors included Viola Fintech, Arbor Ventures, Eight Roads and others. This funding is used to expand its customer base and enhance its innovative product roadmap. Furthermore, the presence of key players in the region such as Google Inc., Microsoft, Oracle, and others is expected to accelerate the growth of the market.    

Some of the prominent players in the IoT Insurance Market include:

• SAP SE
• Google Inc.
• IBM Corporation
• Cisco Systems, Inc.
• Oracle
• LexisNexis
• Hippo Enterprises Inc.
• Microsoft
• Berkshire Hathaway Inc.
• Allianz
• Concirrus
• Hewlett Packard Enterprise Development LP
• Bosch.IO GmbH
• PTC
• Intel Corporation

Segments Covered in the Report

This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects. Further, this research study investigates market size, production, consumption and its development trends at global, regional, and country level for the period of 2017 to 2027 and covers subsequent region in its scope:

By Insurance Type

• Warranty Insurance
• Pension Insurance
• Cyber Insurance
• Life Insurance
• Property & Casualty Insurance
• Health Insurance
• Others

By Application

• Connected Home
• Connected Car
• Connected Health
• Commercial Lines
• Others

By End-use

• Automotive
• Retail
• Industrial
• Residential
• Healthcare
• Logistics
• Others

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

COVID-19 Impact on the IoT Insurance Market Analysis:

The COVID-19 pandemic has impacted various industries such as oil & gas, retail, manufacturing and others due to the strict lockdown imposed by the government across the globe. The disruption in the supply chain of products and services impacted the market growth of the various industries. However, the pandemic has had a positive impact on the IoT insurance market owing to the growing adoption of digital technology among insurance companies to receive customer information for claim management. IoT technology enables insurance companies to securely collect patient health information through mobile cellular, wearable devices and sensor to deliver COVID-19 insurance service to customers.

*Note: A detailed analysis is specific to the IoT insurance market will be provided in the report

The report also provides an in-depth analysis of key trends in the IoT insurance market:

• With a growth in the utilization of connected cars connected to V2X that drive the demand of the market, there is smart and cooperative IoT information exchange among them. This information is further applied for calculating premiums. Moreover, vehicle agencies with an outlook in the direction of connected vehicles are presently increasing their area of interest towards insurance telematics in the region. Government and insurance agencies are also boosting IoT-enabled automotive because it also offers safety.
• The increasing advancement in telematics is further drive the IoT enabled insurance because it helps in calculating premiums and limiting fraud claims.

The report also provides an in-depth analysis of recent news developments and investments:

• In December 2020, Webfleet Solutions (Italy) expanded its OEM.connect programme by allowing the use of BMW and MINI CarData. The programme allows automobile producers to connect their cars immediately with Webfleet Solutions’ fleet management solution, WEBFLEET, getting rid of the need for aftermarket hardware installations. Instant notifications around automobile diagnostics, which includes tyre pressure warnings, allow the tracking of a fleet’s health status in real-time, supporting fleet managers and insurance agencies to maintain their drivers safe and minimise car downtime or additional costs.
• In October 2020, Aeris Communications, an Internet of Things (IoT) technology partner for enterprises, introduced that by their utilization of the Aeris Fusion IoT Network, Axon Telematics has created a fast, self-install telematics device for their customer, a leading UK motor insurance provider. Until government COVID-19 regulations are lifted, telematics set up through technicians may be closely constrained. Axon’s self-set up telematics devices bridge the distance to ensure policy cover can be given, there is minimum data latency and loss ratios are kept to a minimum.

Key Points Covered in IoT Insurance Market Study:

• Growth of IoT Insurance in 2022
• Market Estimates and Forecasts (2017-2027)
•  Brand Share and Market Share Analysis
•  Key Drivers and Restraints Shaping Market Growth
•  Segment-wise, Country-wise, and Region-wise Analysis
•  Competition Mapping and Benchmarking
•  Recommendation on Key Winning Strategies
•  COVID-19 Impact on Demand for IoT Insurance and How to Navigate
•  Key Product Innovations and Regulatory Climate
•  IoT Insurance Consumption Analysis
•  IoT Insurance Production Analysis
•  IoT Insurance and Management