NTT DATA has published it's Insurtech Global Outlook 2023 report with the main conclusion that the Insurtech market achieved 8 billion dollars of investment in 2022, with 470 deals successfully taking place. This represents the second best period in terms of alliances since records began in 2016.
The Insurtech Global Outlook Highlights report 2023 explores the current and future situation of the insurance sector and has analysed 5 challenges that the sector faces:
- Smart distribution
- Digital risks
- On-demand insurance models
- The involvement of companies in society
Despite all the socioeconomic uncertainty, investment levels are still so high, demonstrating the ability to adapt to market movements to support the sector towards emerging demands.
The insurance sector is currently facing an unprecedented evolution and is utilising new technologies to advance in the field and leading change for customers. Four technologies saw advanced usage in 2022 and solved distinctive challenges in the insurance industry:
- API integration
- Analytics and Predictive Analytics
- Health Diagnostics
These technologies that have lead the successful change in the insurance sector are further examined in the report.
Key study findings
billion dollars invested in the insurance sector in 2022.
the number of challenges the insurance sector faces: Sustainability, Smart distribution, Digital risks, On-demand insurance models and Societal company involvement
although the insurance sector received 28% less investment, 2022 was the second best year for total investment since records began in 2016.
the increase of cyberattacks year-on-year.
workload reduction due to digital solutions.
of consumers state that they would likely consider to use virtual care.