Special InsurTech: Online Distribution

United States

Highlights
Market definition
in-scope / out-of-scope
Reports special
  • The direct premiums written in the Online Insurance Distribution amount to US$160,398m in 2018.
  • The direct premiums written are expected to show an annual growth rate (CAGR 2018-2022) of 17.3% resulting in a market volume of US$304,068m by 2022.
  • The market's largest segment is Property & Casualty with a market volume of US$94,829m in 2018.
  • In the Life & Health segment segment, the number of policies sold online is expected to amount to 52.8m by 2022.
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InsurTech is short for ‘Insurance Technology’, a set of innovative business models that disrupt the existing landscape by applying the latest technologies to existing insurance products and creating completely new ways to provide insurance coverage to private customers and businesses. Digital innovations in various forms, including automated underwriting, on-demand insurance services, Internet of Things and big data create new customer experience in all areas of insurance.

The benefits of the digitization process of insurance services include: simplified access for end users via the Internet or mobile apps, reduction in costs, a stronger focus on buying experience and customer service and cost optimization for the insurer.

The InsurTech market is currently dominated by non-life companies that focus primarily on distribution, and we expect seeing a significant shift to online channels in few years. Given the fact that insurance expenditures are often seen as a financial burden and the process of shopping for insurance can be time-consuming and not particularly amusing, there is a high potential in transferring the entire buying process to the Internet and delivering a quick and accurate underwriting experience.

The "InsurTech Online Distribution" market relates to digital insurance distribution to private customers. Included are personal and/or individual policies in life, health, motor, property and liability insurance sold directly to the customer via direct online channels, such as insurance company website or an aggregator plattform. Prerequisite is that the customer has completed the entire application or enrollment process online before the policy is issued.

All financial information refers to the potential direct premiums written for policies sold online in the respective products groups. Both new policies and renewal of policies once purchased online are included in the total direct premiums written calculation.

The following are not included in the current market definition: agency commissions via metasearch engines, any types of commercial or collective insurance and complementary services such as insurance advisory. Policies sold over other direct channels, such as call center or via e-mail, are not considered and the policies sold offline by an agent of company employee to a customer after he or she has requested a quote online are not included.
in-scope
  • Individual insurance policies sold directly to the customer over the internet
  • Individual life insurance
  • Individual health and accident insurance policies (incl. supplementary policies, e.g. dental)
  • Personal motor insurance (incl. cars and motorcycles) and property insurance (home- and farmowners, as well as renters policies)
  • General personal liability insurance
out-of-scope
  • Any type of commercial or group (except family) insurance policies
  • Personal policies sold over other direct channels, such as call center or e-mail
InsurTech Report 2018 - Online Distribution

InsurTech Report 2018 - Online Distribution

Statista Digital Market Outlook - Special Report
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Direct Premiums Written (2018)
+21.4% yoy
US$160,398m
Policies in force (2018)
+17.0% yoy
126.4m

Direct Premiums Written Direct Premiums Growth

in the Special InsurTech: Online Distribution market in million US$ in percent

Reading Support Direct Premiums Written in the Special InsurTech: Online Distribution segment amounts to US$160,398m in 2018. Reading Support The Life & Health segment is expected to show a direct premiums growth of 22.0% in 2019.

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  • Direct Premiums Written
  • Direct Premiums Growth
Info

Direct Premiums Written:

The "Direct Premiums Written" box shows the forecasted value of direct premiums written for the insurance policies sold via the online direct channel in the selected market (market segment, region) for each year. The figures do not refer to the overall revenue that is generated by the insurance companies.


Direct Premiums Growth:

The "Direct Premiums Growth" box shows the year-over-year development of the direct premiums written for the policies of the selected type (market segment, region) sold online in percentage terms.

A definition and detailed explanation of the displayed markets can be found here.
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Policies in force

in the Special InsurTech: Online Distribution market in millions

Reading Support In the Life & Health segment, the number of policies sold online is expected to amount to 52.8m by 2022.

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Policies in force:

The “Policies in force” box shows the number of policies in force sold online for the selected type (market segment, region) in millions for each year.

A definition and detailed explanation of the displayed markets can be found here.
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av. Premium Paid per Policy

in the Special InsurTech: Online Distribution market in US$

Reading Support The average premium paid per policy in the Life & Health segment amounts to US$2,072 in 2018.

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Average Transaction Value per User:

The box shows the average premium paid per policy of the selected type (market segment, region) for each year.

A definition and detailed explanation of the displayed markets can be found here.
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Key Market Indicators

The following Key Market Indicators give an overview of the demographic, economic and technological development of the selected region on the basis of general KPIs. The calculation of Statista’s Market Outlook is based on a complex market-driver logic including over 400 region-specific data sets.

2016201720182019202020212022 CAGR
(2016-2022)
Internet penetration in %
Percentage of individuals in the selected region using the internet | Source: Statista
xx.x xx.x xx.x xx.x xx.x xx.x xx.x
GDP (current) in US$
Gross domestic product (in current prices, constant exchange rate) of the selected region per capita | Source: IMF
xx,xxx xx,xxx xx,xxx xx,xxx xx,xxx xx,xxx xx,xxx
Households in m
Total number of households in the selected region. | Source: Statista
xxx.x xxx.x xxx.x xxx.x xxx.x xxx.x xxx.x
Newly registered companies
Number of newly established and registered companies (within the past 12 months) in the selected region. | Source: OECD, Eurostat, Statista
xxx,xxx xxx,xxx xxx,xxx xxx,xxx xxx,xxx xxx,xxx xxx,xxx
Population in m
Number of individuals (all ages) living in the selected region, the data reflect the United Nation's medium variant of World Population Prospects | Source: UN
xxx.x xxx.x xxx.x xxx.x xxx.x xxx.x xxx.x
0-14 years in m
Number of individuals (age 0-14) living in the selected region, the data reflect the United Nation's medium variant of World Population Prospects | Source: UN
xx.x xx.x xx.x xx.x xx.x xx.x xx.x
15-24 years in m
Number of individuals (age 15-24) living in the selected region, the data reflect the United Nation's medium variant of World Population Prospects | Source: UN
xx.x xx.x xx.x xx.x xx.x xx.x xx.x
25-34 years in m
Number of individuals (age 25-34) living in the selected region, the data reflect the United Nation's medium variant of World Population Prospects | Source: UN
xx.x xx.x xx.x xx.x xx.x xx.x xx.x
35-44 years in m
Number of individuals (age 35-44) living in the selected region, the data reflect the United Nation's medium variant of World Population Prospects | Source: UN
xx.x xx.x xx.x xx.x xx.x xx.x xx.x
45-54 years in m
Number of individuals (age 45-54) living in the selected region, the data reflect the United Nation's medium variant of World Population Prospects | Source: UN
xx.x xx.x xx.x xx.x xx.x xx.x xx.x
55+ years in m
Number of individuals (age 55 and older) living in the selected region, the data reflect the United Nation's medium variant of World Population Prospects | Source: UN
xx.x xx.x xx.x xx.x xx.x xx.x xxx.x
Consumer spending (current) in US$
Average consumer spending per capita of private households in the selected region (in current prices, constant exchange rate) | Source: Statista
xx,xxx xx,xxx xx,xxx xx,xxx xx,xxx xx,xxx xx,xxx
Foodstuffs, beverages in US$
Consumer spending per capita for food and non-alcoholic beverages (according to the Classification of Individual Consumption Purposes, COICOP) in the selected region (in current prices, constant exchange rate). The COICOP definition varies from the market definitions employed in the Consumer Market Outlook. It covers all private household spendings meant for consumption at home. In contrast, the Food market in the Consumer Market Outlook covers only certain segments of processed food and excludes for example fresh food, oils and fats and some other items. The markets for Alcoholic, Non-Alcoholic and Hot Drinks in turn not only include sales for at-home consumption (off-trade) but also sales to the on-trade sector (restaurants, bars, cafés) that are valued at wholesale prices. | Source: Statista
x,xxx x,xxx x,xxx x,xxx x,xxx x,xxx x,xxx
Alcohol, tobacco in US$
Consumer spending per capita for alcoholic beverages, tobacco and narcotics (according to the Classification of Individual Consumption Purposes, COICOP) in the selected region (in current prices, constant exchange rate). The COICOP definition varies from the market definitions employed in the Consumer Market Outlook. It covers all private household spendings meant for consumption at home. The market for Alcoholic, Non-Alcoholic and Hot Drinks not only include sales for at-home consumption (off-trade) but also sales to the on-trade sector (restaurants, bars, cafés) that are valued at wholesale prices. | Source: Statista
xxx xxx xxx xxx xxx xxx xxx
Clothing, footwear in US$
Consumer spending per capita for clothing and footwear (according to the Classification of Individual Consumption Purposes, COICOP) in the selected region (in current prices, constant exchange rate). Included are both consumption of goods as well as services (cleaning and cobblers). | Source: Statista
x,xxx x,xxx x,xxx x,xxx x,xxx x,xxx x,xxx
Housing in US$
Consumer spending per capita for housing, water, electricity, gas and other fuels (according to the Classification of Individual Consumption Purposes, COICOP) in the selected region (in current prices, constant exchange rate) | Source: Statista
x,xxx x,xxx x,xxx x,xxx x,xxx x,xxx x,xxx
Household in US$
Consumer spending per capita for furnishings, household equipment and routine maintenance of the house (according to the Classification of Individual Consumption Purposes, COICOP) in the selected region (in current prices, constant exchange rate) | Source: Statista
x,xxx x,xxx x,xxx x,xxx x,xxx x,xxx x,xxx
Health in US$
Consumer spending per capita for health (according to the Classification of Individual Consumption Purposes, COICOP) in the selected region (in current prices, constant exchange rate) | Source: Statista
x,xxx x,xxx x,xxx x,xxx x,xxx x,xxx xx,xxx
Transport in US$
Consumer spending per capita for transport (according to the Classification of Individual Consumption Purposes, COICOP) in the selected region (in current prices, constant exchange rate). This group inlcudes the purchase of vehicles, maintenenace of vehicles as well as transportation services. | Source: Statista
x,xxx x,xxx x,xxx x,xxx x,xxx x,xxx x,xxx
Communication in US$
Consumer spending per capita for communication (according to the Classification of Individual Consumption Purposes, COICOP) in the selected region (in current prices, constant exchange rate) | Source: Statista
xxx xxx x,xxx x,xxx x,xxx x,xxx x,xxx
Recreation, culture in US$
Consumer spending per capita for recreation and culture (according to the Classification of Individual Consumption Purposes, COICOP) in the selected region (in current prices, constant exchange rate) | Source: Statista
x,xxx x,xxx x,xxx x,xxx x,xxx x,xxx x,xxx
Education in US$
Consumer spending per capita for education (according to the Classification of Individual Consumption Purposes, COICOP) in the selected region (in current prices, constant exchange rate) | Source: Statista
xxx xxx xxx xxx xxx xxx x,xxx
Restaurants, hotels in US$
Consumer spending per capita for restaurants and hotels (according to the Classification of Individual Consumption Purposes, COICOP) in the selected region (in current prices, constant exchange rate) | Source: Statista
x,xxx x,xxx x,xxx x,xxx x,xxx x,xxx x,xxx
Other in US$
Consumer spending per capita for miscellaneous goods and services (according to the Classification of Individual Consumption Purposes, COICOP) in the selected region (in current prices, constant exchange rate). These include personal care products and services, personal items like watches and jewellery as well as all other products and services not mentioned elsewhere. | Source: Statista
x,xxx x,xxx x,xxx x,xxx x,xxx x,xxx x,xxx
Telecommunication
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Average connection speed in kbits/s
Average internet connection speed in Kbits/s. | Source: Akamai, Statista
xx,xxx xx,xxx xx,xxx xx,xxx xx,xxx xx,xxx xx,xxx
Broadband subscriptions per 100 capita
Number of-fixed broadband subscriptions per 100 inhabitants. | Source: World Bank, Statista
xx.x xx.x xx.x xx.x xx.x xx.x xx.x
Smartphone penetration in %
Percentage of individuals from the total population using a smartphone on a monthly basis | Source: Statista
xx.x xx.x xx.x xx.x xx.x xx.x xx.x
Hardware market
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Per-capita volume mobile phones in units
Average per capita sales of mobile phones in units | Source: Statista
x.xx x.xx x.xx x.xx x.xx x.xx x.xx
Per-capita volume laptops in units
Average per capita sales of laptops and tablets in units | Source: Statista
x.xx x.xx x.xx x.xx x.xx x.xx x.xx
Per-capita volume desktop PCs in units
Average per capita sales of Desktop-PCs in units. | Source: Statista
x.xxx x.xxx x.xxx x.xxx x.xxx x.xxx x.xxx
Per-capita revenue mobile phones in US$
Average revenue of mobile phones per capita | Source: Statista
xxx.x xxx.x xxx.x xxx.x xxx.x xxx.x xxx.x
Per-capita revenue laptops in US$
Average revenue of laptops and tablets per capita. | Source: Statista
xxx.x xxx.x xxx.x xxx.x xxx.x xxx.x xxx.x
Per-capita revenue desktop PCs in US$
Average revenue of Desktop-PCs per capita. | Source: Statista
xx.x xx.x xx.x x.x x.x x.x x.x
Finance
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Online banking penetration in %
Percentage of individuals (total population over 16 years) using online-banking services at least once a year (e.g. bank transfers, account information). | Source: Eurostat, Statista
xx.x xx.x xx.x xx.x xx.x xx.x xx.x
Debit card penetration in %
Percentage of individuals (total population over 16 years) who own at least one debit card. | Source: World Bank, Statista
xx.x xx.x xx.x xx.x xx.x xx.x xx.x
Source: Statista, November 2018
Source: Statista, November 2018, based on IMF, World Bank, UN and Eurostat
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