IoT Insurance Global Market Report 2024

The iot insurance market size has grown exponentially in recent years. It will grow from $65.55 billion in 2023 to $101.64 billion in 2024 at a compound annual growth rate (CAGR) of 55.0%. The growth observed in the historical period can be attributed to risk prevention and mitigation efforts, enhanced customer engagement, the adoption of home automation devices, the use of health and wearable devices, the proliferation of smart property devices, and the increasing concerns related to cybersecurity.

The iot insurance market size is expected to see exponential growth in the next few years. It will grow to $612.55 billion in 2028 at a compound annual growth rate (CAGR) of 56.7%. The anticipated growth in the forecast period can be attributed to regulatory support, the emergence of insurtech startups, smart city initiatives, the adoption of customized premiums, and an increased focus on climate and environmental monitoring. Major trends expected in the forecast period include the integration of connected devices, the application of telematics in auto insurance, the development of smart home and property insurance, the incorporation of cyber insurance with IoT security measures, the utilization of blockchain for data security, and the continued use of data analytics and predictive modeling in the insurance industry.

The IoT insurance market is experiencing significant growth due to the increasing utilization of the Internet of Things (IoT). The IoT encompasses a network of physical items equipped with sensors, software, and other technologies to connect and exchange information over the internet. This technology enables insurance companies to enhance risk assessment accuracy and build stronger customer relationships. For example, a report from Fieldforce Inc., a US-based software development and network platform company, indicated a year-on-year growth of 61% in IoT adoption from 2020 to 2021. This trend indicates that the growing usage of IoT will be a driving force behind the IoT insurance market.

The expansion of health insurance coverage is anticipated to be a key driver for the growth of the IoT insurance market. Health insurance, which covers all or part of the risk associated with medical expenses, is leveraging IoT to promote preventive care, improve risk assessment, and enhance the overall wellness of policyholders. In September 2023, data from the US Census Bureau revealed that health insurance coverage reached 92.1% of the population in 2022, totaling 304.0 million individuals at some point during the year. This increase in both the insured rate and the total number of insured individuals compared to 2021 (91.7%, or 300.9 million) highlights the role of expanding health insurance coverage in driving the IoT insurance market.

A prominent trend in the IoT insurance market is technological advancement, with major companies focusing on developing innovative technologies to advance IoT applications in the insurance sector. For instance, in December 2022, ARMD, a UK-based InsureTech company, introduced a new Smart Van Alarm and Tracker, an IoT technology aimed at improving protection for tradespeople, providing insurers with enhanced underwriting data, and reducing fraudulent claims. This IoT device, controlled through the ARMD app, centralizes tool inventory, security, insurance, and van location, streamlining the claims process and simplifying procedures for craftsmen and insurers. The device also functions as a car tracker, offering crucial information for claims and underwriting purposes.

Strategic partnerships are a significant approach adopted by major companies in the IoT insurance market to introduce innovative services. In May 2023, Sky, a US-based company, collaborated with Zurich Insurance Group Ltd to launch a smart home protection IoT service called Sky Protect Smart Home Insurance. This offering combines comprehensive home insurance with smart home technology, including video doorbells, indoor cameras, leak detectors, motion sensors, and contact sensors. Zurich Insurance Group Ltd., a Switzerland-based insurance company, underwrites this innovative service, showcasing how strategic partnerships are driving the integration of IoT in insurance services.

In September 2022, Lemonade Inc., a US-based home and car insurance provider utilizing IoT for insurance handling and risk assessment, acquired Metromile for $145 million. This acquisition integrated Metromile's car sensors, connected to IoT, and utilizing AI for monitoring miles driven, into Lemonade's portfolio, expanding the application of IoT in insurance services. Metromile, a US-based pay-per-mile car insurance company, has been using IoT and smart driving features to monitor driving data.

Major companies operating in the iot insurance market report are SAP SE, Cisco Systems Inc., Alphabet Inc., International Business Machines Corporation, Accenture plc, Microsoft Corporation, Oracle Corporation, Aeris Group Ltd., Concirrus Ltd., Telit Communications plc, Verisk Analytics Inc., Allerin Pvt. Ltd., ForMotiv LLC, Wipro Limited, Webfleet Solutions BV, Intel Corporation, Google LLC, Capgemini SE, Allstate Insurance Company, Liberty Mutual Insurance Company, State Farm Mutual Automobile Insurance Company, Progressive Corporation, The Travelers Companies Inc., Nationwide Mutual Insurance Company, American International Group Inc., Zurich Insurance Group AG, Chubb Limited, The Hartford Financial Services Group Inc., Farmers Insurance Group of Companies, Munich Re Group, Swiss Re AG, Berkshire Hathaway Inc., AXA SA, Generali Group, Ping An Insurance (Group) Company of China Ltd., China Life Insurance Company Limited, Samsung Fire & Marine Insurance Co Ltd., Sompo Holdings Inc.

North America was the largest region in the IoT insurance market in 2023. The regions covered in the iot insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the iot insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary insurance types associated with IoT insurance include life and health insurance, property and casualty insurance, and other insurance categories. Life insurance entails a legal agreement between a policyholder and an insurance company, wherein the insurer commits to paying a specific amount upon the demise of a covered party or after a predetermined period, in exchange for premium payments. Health insurance involves an arrangement where an insurance provider covers some or all of the policyholder's medical costs in exchange for regular premium payments. Various components such as solutions and services are applicable in diverse applications, spanning automotive transportation and logistics, life and health, commercial and residential buildings, business and enterprise, agriculture, and other sectors.

The IoT insurance market research report is one of a series of new reports that provides IoT insurance market statistics, including IoT insurance industry global market size, regional shares, competitors with a IoT insurance market share, detailed IoT insurance market segments, market trends and opportunities, and any further data you may need to thrive in the IoT insurance industry. This IoT insurance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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