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Perspectives
Turbocharging the specialty insurance market
Maintaining growth in the ever-evolving landscape
How can carriers maintain momentum during an unprecedented growth phase in the specialty insurance market? The future will hinge on their ability to integrate flexible technology. Our article outlines three typical transformation pathways for carriers and the distinct technology capabilities needed for each scenario.
The specialty insurance market landscape
Specialty insurance refers to a type of insurance that provides coverage for risks typically not covered under standard insurance policies. Unlike standard insurance policies, which are designed to provide insurance coverage for risks such as personal automobile and personal or commercial property, specialty insurance policies are tailored to address niche or unusual risks that require very specialized knowledge. The key benefit is the flexibility available to allow customers or businesses to obtain insurance coverage on both admitted and non-admitted bases, which may otherwise be unavailable or unaffordable in the standard commercial property and casualty (P&C) insurance markets.
Over the past few years there has been unprecedented growth in the specialty insurance market with industry analysts forecasting continued material growth over the next several years. The global specialty insurance market was valued at $104.7 billion in 2021 and is projected to reach $279 billion by 2031—a CAGR of 10.6% during this 10-year period.
Carriers can sustain growth by quickly rolling out cost-effective products, streamlining operations, establishing feedback loops, and adapting to specialty insurance market dynamics with flexible technology. In this report, we explore the driving factors of specialty insurance growth and the digital capabilities carriers need to meet market demands, according to three common transformation scenarios.
The path to sustainable growth: Three transformation scenarios
Looking ahead
Carriers looking to tap into or sustain growth during this unprecedented growth phase in the specialty insurance market need to act regardless of which scenario they closely align to. The future of specialty carriers hinges on their ability to integrate forward-looking technologies seamlessly, providing a responsive and customer-centric insurance experience in an ever-evolving landscape. Read the full report for an in-depth look at each scenario and the digital capabilities carriers will need to drive sustainable growth.
Endnotes:
1. GitHub, “TELUS streamlined productivity by replacing their DevOps tools with GitHub,” accessed April 2024.
2. GitHub, “Duolingo empowers its engineers to be force multipliers for expertise with GitHub Copilot and Codespaces,” accessed April 2024.
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