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Middle East And Africa Insurtech Market Size (2024 - 2029)

The Middle East and Africa Insurtech market is experiencing growth driven by the low insurance penetration rates in the region, particularly in non-life insurance compared to life insurance. This gap is prompting the adoption of Insurtech solutions to enhance market penetration. Traditional insurance providers are increasingly integrating digital solutions to expand their offerings, supported by the rising internet usage that facilitates broader customer reach and reduces acquisition costs. The presence of numerous fintech companies is further contributing to the market by offering personalized insurance products. Despite the high GDP per capita in several MENA countries, traditional insurers are investing minimally in technology, creating opportunities for Insurtech firms to grow and capture market share.

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Market Size of Middle East And Africa Insurtech Industry

Middle East And Africa Insurtech Market Summary
Study Period 2020-2029
Base Year For Estimation 2023
Market Size (2024) USD 76.32 Million
Market Size (2029) USD 102.13 Million
CAGR (2024 - 2029) 6.00 %
Market Concentration High

Major Players

Middle East And Africa Insurtech Market Major Players

*Disclaimer: Major Players sorted in no particular order

Middle East And Africa Insurtech Market Analysis

The Middle East And Africa Insurtech Market size is estimated at USD 76.32 million in 2024, and is expected to reach USD 102.13 million by 2029, growing at a CAGR of 6% during the forecast period (2024-2029).

Insurance Penetration in Middle East countries exists at a significantly low level with non-life insurance having a larger penetration than life insurance products in the market. UAE, Iran, and Jordan exist among the Middle Eastern countries with the highest insurance penetration rate of around 2% in the region. As a result of this existing gap, Insurtech solutions are emerging as a digital insurance product in the region for expanding the Insurance market penetration in the region. Existing traditional Insurance are adopting digital solutions for expanding their online insurance products as well and fintech platforms are emerging in the market providing users with a wide range of Insurance coverage products. Rising Internet usage penetration in the region is creating a positive externality for insurance providers to reach a large customer base and reduce insurance providers' customer acquisition costs through their digital insurance products.

Qatar, Israel, UAE, Kuwait, and Saudi Arabia are among the countries in the MENA region with the highest value of GDP per capita and this is leading to a rise in expenditure of the people on Insurance products either related to life or non-life. The number of fintech companies in the Middle East region has observed a continuous increase over the years providing personalized and on-demand insurance products. Among the insurance products, Nonlife and P&C insurance are among the segments with a share of more than 70% of net gross written premium (GWP). Traditional insurance providers existing in the region are investing as little as two percent of their revenues in technology which is hampering the expansion of digital insurance products in the region and providing opportunities for Insurtech players to expand.

Middle East And Africa Insurtech Industry Segmentation

Insurtech refers to the use of digital technology to offer insurance products. It improves the efficiency of the insurance industry model. Insurtech offerings vary from life and non-life to P&C insurance with a wide range of emerging digital insurance products allowing users to pay their premium and claim their insurance online.

The Middle East and Africa Insurtech Market is segmented by service, by insurance segment and by geography. By service the market is segmented into consulting, support and maintenance, managed services. By insurance segment the market is segmented into life, non-life, and other segments. By geography the market is segmented into uae, saudi arabia, egypt, south africa, and the rest of the middle east and africa. The report also covers the market sizes and forecasts for the middle east and africa insurtech market in value (USD) for all the above segments.

By Service
Consulting
Support and Maintenance
Managed Services
By Insurance type
Life
Non-Life
Other Segments
By Country
UAE
Saudi Arabia
Egypt
South Africa
Rest of Middle East and Africa
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Middle East And Africa Insurtech Market Size Summary

The Middle East and Africa Insurtech market is poised for significant growth, driven by the increasing adoption of digital insurance solutions across the region. Despite the low insurance penetration rates, particularly in life insurance, countries like the UAE, Iran, and Jordan are witnessing a surge in insurtech activities. This growth is fueled by the rising internet usage, which enables insurance providers to reach a broader customer base and reduce acquisition costs through digital platforms. The region's high GDP per capita in countries such as Qatar, Israel, and Saudi Arabia is also contributing to increased spending on both life and non-life insurance products. Traditional insurance companies are gradually embracing digital solutions, although their investment in technology remains limited, creating opportunities for insurtech players to expand their market presence.

The insurtech landscape in the Middle East and Africa is characterized by a fragmented market with numerous international and domestic players offering a diverse range of flexible and affordable digital insurance products. Companies like Adnic, Bupa Arabia, Tawuniya, and Abu Dhabi National Insurance are leading the charge in expanding digital insurance offerings. The adoption of technologies such as blockchain is enhancing operational efficiencies, including automated claim payments, which align with cost-reduction strategies. The market is witnessing a continuous increase in fintech companies providing personalized insurance products, with motor and health insurance sectors experiencing notable growth. Government initiatives to promote these products further bolster the market, positioning insurtech as a key driver of innovation and revenue growth in the region.

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Middle East And Africa Insurtech Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Rise In Expenditure On Digital Innovation By Insurance Companies

      2. 1.2.2 Increase In Number Of Fintech Companies In The Region

    3. 1.3 Market Restraints

      1. 1.3.1 Decline In Sales Of Life Insurance Products

    4. 1.4 Market Opportunities

      1. 1.4.1 Increase In Demand For Customized Insurance Products By The Businesses

    5. 1.5 Industry Attractiveness - Porters' Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitutes

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Technological Innovations in the Middle East and Africa Insurtech Market

    7. 1.7 Macroeconomic Aspects and Demographics of Middle East and Africa Insurtech Market

    8. 1.8 Regulatory Landscape in Middle East and Africa Insurtech Market

    9. 1.9 Venture Capital Investment in Middle East and Africa Insurtech Market

    10. 1.10 Impact of COVID-19 on the Industry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Service

      1. 2.1.1 Consulting

      2. 2.1.2 Support and Maintenance

      3. 2.1.3 Managed Services

    2. 2.2 By Insurance type

      1. 2.2.1 Life

      2. 2.2.2 Non-Life

      3. 2.2.3 Other Segments

    3. 2.3 By Country

      1. 2.3.1 UAE

      2. 2.3.2 Saudi Arabia

      3. 2.3.3 Egypt

      4. 2.3.4 South Africa

      5. 2.3.5 Rest of Middle East and Africa

Middle East And Africa Insurtech Market Size FAQs

The Middle East And Africa Insurtech Market size is expected to reach USD 76.32 million in 2024 and grow at a CAGR of 6% to reach USD 102.13 million by 2029.

In 2024, the Middle East And Africa Insurtech Market size is expected to reach USD 76.32 million.

Middle East And Africa Insurtech Market Report Snapshots

Middle East and Africa Insurtech Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)