Insurtech

Digital Transformation Potential in Insurtech

The Insurance sector is amongst the most susceptible to digital transformation-enabled change of all industries. At the core of insurance is the concept of risk-transfer (from an insured party to an insurance carrier), and the availability of more high-quality information about a risk, and enhanced analysis of that information, can result in more accurate pricing and a more efficient market overall. Concepts such as IoT allow insurance offerings to be extended to support new propositions (such as insurance for servitised assets) and enhance services in already-established markets (with, for instance, usage-based insurance and new types of parametric insurance). Artificial Intelligence can play a significant role both in automating processes (for instance claims processing), and also in terms of assessing risks at a level of granularity that might not have been feasible before.

Nine key domains of change in Insurtech

Overall, we have identified nine key domains of change in the Insurtech sector that are enabled by digital transformation, as illustrated below.

These domains of change are discussed in more detail in our report Digital Transformation in the Insurance Sector:

The domains of change discussed in the report comprise:

Claims Automation considers the digital transformation of claims processing using a range of technologies.
Associated Services considers the augmentation of a core insurance offering with associated services such as connected monitoring devices or monitoring services, potentially in association with a channel partner.
Parametric Insurance addresses an emerging type of insurance that offers pre-defined pay-outs based on trigger events, rather than the more traditional approach which is to compensate for actual losses.
Usage-Based (Automotive) Insurance tracks driving behaviour via telematics devices installed in the insured vehicle and potentially rewards users with a subsidised premium, based on their driving behaviour.
Personalised Customer Experiences which considers the use of digital technologies to offer insurance services to streamline insurance business operations and offer an enriched customer experience.
Transfomative Underwriting which includes applying machine learning and AI algorithms and predictive analytics to expedite an underwriter’s job.
Servitised Asset Insurance covers a range of opportunities related to servitised assets, including policies covering repairs for those assets, and also insurance for consequential losses in the case that servitised assets malfunction.
Insurance for AI-related Threats which is the use of insurance solutions to safeguard end-users and enterprises from undesired outputs generated by AI-based solutions, including solutions that protect developers, users, and enterprises.
Smart Contracts exist to ease the contracting process between an entity requiring insurance and an insurance carrier.

Collectively, the activities listed above will bring significant changes to the Insurtech sector.

IoT and Insurtech

IoT is one of the key technology groups impacting the Insurtech sector and further detail and analysis of key IoT applications for the Insurtech sector can be found in Transforma Insight’s Forecast Insight Reports. Some of these applications are directly relevant to the sector, whilst others are only indirectly related.

Directly related IoT applications and Forecast Insight Reports include:

Security Tracking – Includes a range of security-related applications for security guards, prison guards, and for offender tagging. The use of ‘smart soldier’ equipment by defence personnel in a military context is also included.
Asset Monitoring – This application group encompasses a variety of assets that are suitable for remote monitoring. This includes the monitoring of livestock and associated applications such as automated feeders. It also covers the monitoring of fitness equipment located in gyms and other shared contexts. Tracking and monitoring of equipment in ambulances is also incorporated as part of the healthcare vertical. Furthermore, this Application Group includes connected video gaming machines, gambling machines and other devices such as pachinko machines. Monitoring the condition, availability, and use of assets important to public health such as life rings and defibrillators is also present in this application group, including access to potentially dangerous infrastructure such as substations.
Usage-Based Insurance – This Application Group covers onboard devices or software hosted on a Vehicle Head Unit, used to monitor vehicle usage and driver behaviour to provide more accurate or reduced insurance premiums. In some cases, drivers are provided with instructions through smartphone-based apps to improve their driving. Instances where an application is hosted on a Vehicle Head Unit do not count as a separate connection.
CCTV – Connected video cameras used for public safety and surveillance, mostly installed and monitored by government bodies for the monitoring of streets and public places.
eCall – eCall refers to an emergency calling system in vehicles that provides notifications in the event of an accident. The Application Group can be supported using a connection provided by the vehicle head unit or through an aftermarket device in the vehicle. Emergency calling under regulatory mandates such as ERA-GLONASS and eCall is included, in addition to opt-in manufacturer-provided services.
Loss Prevention – Includes anti-theft solutions based on boundary control and location monitoring for specific goods in a retail context. In the context of the forecasts, we have not considered passive RFID tags, but we have accounted for active RFID tags and any devices used to monitor passive RFID tags in a loss prevention context.
Stolen Vehicle Recovery – Vehicle tracking to warn of break-ins, prevent theft, or facilitate vehicle recovery in the event of theft. In more sophisticated systems, it may be possible to sound alarms or shut down vehicle functions. This application includes aftermarket devices placed in the vehicle in addition to software making use of the vehicle head unit’s connection.
Dash Cams – Dash cams are video camera systems mounted on the dashboard or windscreen of a vehicle to provide a view of the road, traffic, driver, or vehicle interior. These can be forward facing (road facing) or dual facing (road and driver facing). Most connected dash cams are used to live stream videos, but some can cache video footage for on-demand viewing as well. They are also used to help combat vehicle theft and fraudulent insurance claims, safeguard drivers, and ensure road safety.

Indirectly related IoT applications and Forecast Insight Reports include:

Vehicle Head Unit – Vehicle Head Unit refers to the embedded hardware that provides a commercial or consumer road vehicle with a wide-area connection. It is typically included as part of a vehicle’s telematics control unit. This connection is often able to support multiple other connected vehicle applications, such as navigation, usage-based insurance, and infotainment (which we cover in other Application Groups). In this Application Group, we count the shared connection as well as some exclusively software-based ancillary services such as remote door unlock and concierge.
Inventory Management & Monitoring – This Application Group pertains to the remote monitoring of volumes and inventory, including consumables, warehouse stock, retail stock, and refuse levels. It encompasses stock level and condition monitoring, such as specialist inventory systems, baggage handling systems, soap dispensers, toilet doors, pest control, and various other use cases. It also covers all types of electronic shelf labels. Additionally, this group includes warehouse management systems, which involve picking machinery and warehouse robots (unless counted in other autonomous vehicles or robotics categories as is the case for cobots and automated forklifts).
Healthcare Monitoring – This Application Group includes devices used to monitor heart disease, diabetes, and pulmonary disease by healthcare providers and consumers in both clinical settings and at home. It also includes wearable fitness tracking devices (but not smart watches), various home health monitoring devices such as connected bathroom scales, and patient tracking in clinical environments such as hospitals.
In-Vehicle Navigation – This Application Group includes navigation applications – either hosted on vehicle head units or dedicated aftermarket devices – that are used to provide directions and routes to drivers. Built-in devices that rely on the vehicle head unit for a connection do not register as a discrete connection in our forecast.
Worker Safety – This report focuses on lone worker safety solutions across various industry verticals, particularly those involving dangerous environments such as logging and mining. It also covers personal monitoring and support solutions, including bodycams, for fire service, police, and emergency medical service personnel.
Assisted Living – Assisted Living solutions include lifestyle support and people tracking devices for the disabled, elderly, and infirm. It includes connected medicine dispensers for prescription adherence, tracking devices for wander management, alarm systems for fall management, and comprehensive living solutions for round the clock monitoring of patients.
Global IoT Forecast Report, 2024-2034
Child & Pet Tracking – Dedicated devices for tracking children, including anti-abandonment devices used to prevent children being left in cars, but excludes mobile phones, or any assisted living devices used by children. It also includes tracking devices for pets, mostly cats and dogs but also potentially other household pets.
Global AIoT Forecast, 2023-2033
Autonomous Road Passenger Vehicles – Automated Road Passenger Vehicles comprises autonomous vehicles primarily used to transport passengers on the road. This Application Group includes buses, coaches, minivans, and robotaxis, as well as private vehicles. To be counted as part of this Application Group vehicles must be capable of operating at Level 3 of the Society of Automotive Engineers (SAE) levels of autonomy. This level of automation requires the vehicle to monitor the environment and requires “the driving mode-specific performance by an automated driving system of all aspects of the dynamic driving task.”
Road Fleet Management – Road Fleet Management covers in-vehicle transportation logistics solutions including job allocation, vehicle tracking, vehicle and driver monitoring, maintenance planning, safety compliance, fuel management, and incident management. It can be delivered as a service via a dedicated aftermarket device or through factory-fit connectivity (accessed via the vehicle head unit). The forecast takes both heavy- and light-duty vehicles into consideration. It includes devices deployed in cars, vans, trucks, and buses, along with heavy vehicles such as tractors, combine harvesters, pile drivers, tunnelling machines, cranes, and other off-road equipment.
In-Vehicle Infotainment – The In-Vehicle Infotainment Application Group includes a variety of in-vehicle media functions including music, video, and in-vehicle Wi-Fi. This Application Group includes applications hosted on the vehicle head unit and aftermarket devices. Vehicle connections and OEM mirroring systems such as Android Auto and Apple CarPlay are counted as part of the Vehicle Head Unit Application Group.
Global IoT Forecast Report, 2023-2033
Roadside Assistance – The Roadside Assistance Application Group focuses on the notification of recovery services in the event of a vehicle breakdown or any other emergency. Recovery services include vehicle towing, winching, fuel deliveries, and battery- and tyre-related services. Vehicle diagnostics and location tracking may also be included to improve its efficiency. This application includes aftermarket devices in addition to applications hosted on the vehicle head unit.
Vehicle Rental, Leasing & Sharing Management – The Vehicle Rental, Leasing & Sharing Management Application Group refers to the use of onboard devices and vehicle head unit-hosted applications that are used to provide access, monitor, and track the usage of vehicles which are lent to third parties. This may include traditional car hire companies, shared vehicle programs, and finance companies that lease vehicles to their users.

Digital Transformation in the Insurance Sector

REPORT | JAN 06, 2026 | Jim Morrish ; Paras Sharma

Transforma Insights’ Insurance sector report discusses the impact of digitally transformative technologies in the Insurance industry.

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Asset Monitoring: 239 million devices in 2034 to prevent theft and increase asset productivity

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This report provides Transforma Insights’ view on the Asset Monitoring market. This segment comprises a diverse set of applications including Livestock Monitoring, Commercial Fitness Equipment, Emergency Medical Services Asset Monitoring, Gaming Machines, and Health & Safety Notification. Remote monitoring of devices enables frequent checks of devices, minimising downtime and costs by detecting potential failures early and allowing maintenance to be scheduled before any issue arises. Also, without the need for physical inspection, a large number of assets can be easily managed across multiple locations. While Short Range connectivity technologies will dominate, many of these applications use LPWA-based solutions due to their extensive coverage, low cost, and low power usage. The report provides a detailed definition of the sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used (including splits by 2G, 3G, 4G, 5G, LPWA, short range, satellite, and others), as well as the revenue split between module, value-added connectivity, and services. A full set of forecast data, including country-level forecasts, sector break-downs and public/private network splits, is available through the IoT Forecast tool.

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Usage-Based Insurance: New business models and rising premiums driving a 205 million device industry by 2033

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CCTV: 573 million devices being used for surveillance purposes

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eCall: 714 million revenue generating units by 2033 driven by regulatory mandates and road safety initiatives

REPORT | APR 25, 2024 | Nikita Singh ; Matt Arnott

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Loss Prevention: 15 million devices in 2033 providing retailers with theft prevention solutions

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Insurtech

Sector Focus

Sector Focus

Digital Transformation Potential in Insurtech

Nine key domains of change in Insurtech

IoT and Insurtech

Other content and related analysis

Sector Focus

Sector Report

Digital Transformation in the Insurance Sector

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Webinar - IoT Communications Service Provider (CSP) strategies and landscape

Security Tracking: 11.8 million connected devices by 2034, generating USD1.7 billion in revenue

AI-enabled IoT video analytics: market landscape

Asset Monitoring: 239 million devices in 2034 to prevent theft and increase asset productivity

Webinar – Transforma Insights’ annual global IoT market forecast update

Position Paper – Emerging security regulations for the Internet of Things

Usage-Based Insurance: New business models and rising premiums driving a 205 million device industry by 2033

CCTV: 573 million devices being used for surveillance purposes

eCall: 714 million revenue generating units by 2033 driven by regulatory mandates and road safety initiatives

Loss Prevention: 15 million devices in 2033 providing retailers with theft prevention solutions

Stolen Vehicle Recovery: Rising vehicle theft encourages a 42 million device market by 2033

Dash Cams: 78.4 million connected in-vehicle cameras will improve driver efficiency and road safety in 2032

Generative AI use cases flourish across multiple domains and industries

Digital Transformation Implementation Best Practice Report