This report provides comprehensive and current information and analysis of the innovations in insurance market including innovations in insurance market size, anticipated market forecast, relevant market segmentation, and industry trends for the innovations in insurance market in the US.

Current market landscape

With inflation at levels unseen in over 40-years, consumers are more open than ever to adopting behavior-based insurance due to the cost savings, with 65% willing to share home or auto data with their providers to get a policy discount. As inflation has worsened throughout 2022, these sentiments have only been amplified. In January, the share of people open to the concept sat at 35%. Insurers getting their customers to use usage-based insurance programs will be critical from a customer retention standpoint, as many could look to switch insurers that provide cheaper rates to cut costs amid inflationary pressures.

Telehealth adoption has also continued to increase since its surge in usage during the pandemic, as consumers continue to see the value of getting care from the comfort of their homes at any time of day. Beyond preventative care, nearly a third of consumers are also open to using teletherapy services, with over 80% wishing that insurers would ramp up their focus on mental health services in general.

Market share and innovative trends in insurance

  • 83% of consumers have health insurance (see Insurance Ownership).
  • Over 8 in 10 consumers own at least one P&C policy, with auto insurance the most common type of P&C coverage – owned by 74% of consumers (see Insurance Ownership).
  • Nearly half of consumers own life insurance, with ownership lowest among Gen Zers and Millennials (see Competitive Strategies and Market Opportunities).

Future market trends in innovations in insurance

While interest in innovative offerings is strong, the insurance industry is still grappling with the issue of low trust levels, with over half of consumers saying that they trust the insurance industry less now than they did in the past five years. While innovation is a key proponent of differentiation, especially in such a competitive market, trust and loyalty remain the foundation of any fruitful relationship between insured and insurer.

Read on to discover more about the innovations in insurance consumer market, read our US Marketing Financial Products Market Report 2022, or take a look at our other Financial Services research reports.

Quickly understand innovation in health insurance

  • Insurance ownership.
  • Insurance mobile app usage.
  • Attitudes toward insurance.
  • Openness to non-traditional insurance coverage.
  • Openness to a wide range of insurance technology.

Covered in this innovations in insurance market report

Brands include: BCBS, Northwestern Mutual, Prudential of America, New York Life, SafePilot, Abbott, Weight Watchers, USAA, Kaiser, Ginger, Calm, Tesla, OnStar, AirBnB, Ryanair, Cover Genius, Ethos Life, Google, Amazon, Progressive, American Family, Hippo.

Expert analysis from a specialist in the innovation in insurance industry field

This report, written by Amr Hamdi, a leading analyst in the Finance sector, delivers in-depth commentary and analysis on digital innovation in the insurance market to highlight current trends and add expert context to the numbers.

Interest in innovative insurance offerings such as telematics and virtual health care, has gained significant traction since the pandemic, and has risen even further amid the current economic climate. Consumers have become much more comfortable sharing their data for a policy discount, as inflationary pressures and premium hikes continue to strain budgets. On the healthcare front, telehealth adoption has continued to increase, and the market for remote monitoring remains primed for further adoption, building on consumers’ increased engagement with their health. Providers, while needing to continue to innovate, must not forego the importance of maintaining transparency and customer-centricity, always looking for opportunities to build relationships with consumers on a deeper level to enhance both trust and loyalty – two things invaluable in the financial services industry.

Amr Hamdi, Finance Analyst
Amr Hamdi
Finance Analyst

Table of Contents

  1. Overview

    • What you need to know
      • This Report looks at the following areas
        • Market context
        • Executive Summary

            • Top takeaways
              • Nearly half would rather interact with a mobile app than an insurance agent
                • Figure 1: Opinions on agent interaction, by age, 2022
              • 65% of consumers are open to sharing their home or auto data for a policy discount
                • Figure 2: Interest in sharing home or auto data, by generation, 2022
              • Telehealth usage continues to increase
                • Figure 3: Interest in and usage of telehealth or voice-activated assistants, 2022
                • Figure 4: BCBS of Illinois email, 2022
              • Market overview
                • Figure 5: Insurance outlook, 2022-27
              • Opportunities and challenges
                • Current economic climate could lead to declining customer loyalty across P&C lines
                  • Telematics braced for increased adoption amid inflationary pressures
                    • Key consumer insights
                      • Older generations more likely to focus on prevention, while Gen Z focuses on mental health
                        • Figure 6: Opinions on preventative and mental health care, by generation, 2022
                      • Mobile app usage is highest across auto and health insurance
                        • Figure 7: Mobile app usage, by age, 2022
                        • Figure 8: Most valuable features in a P&C insurer’s app, 2022
                        • Figure 9: Most valuable features in a health insurer’s app, 2022
                    • US Insurance Market

                      • State Farm, Berkshire remain the two biggest P&C insurance carriers
                        • Figure 10: Top five writers of property and casualty insurance by direct premiums written, 2021
                      • P&C insurance direct premiums written near $800 billion for 2021
                        • Figure 11: Total property and casualty insurance direct premiums written, 2017-21
                      • Northwestern Mutual, New York Life are the two leading life insurers
                        • Figure 12: Top five writers of life and fraternal insurance groups by direct premiums written, 2021
                      • Life insurance total premiums written record headline 2021
                        • Figure 13: Total life insurance direct premiums written, 2018-21
                    • Market Factors

                      • Inflationary pressures continue to burden insurance customers
                        • Figure 14: Consumer Price Index change from previous period, 2007-22
                        • Figure 15: Change in financial situation in past 12 months, by employment status, 2021 and 2022
                      • Labor markets expected to slow down heading into 2023
                        • Figure 16: Unemployment and underemployment, 2007-22
                    • Competitive Strategies and Market Opportunities

                      • Abbott partners with Weight Watchers for digital diabetes management
                        • USAA implements crash detection technology into its SafePilot App
                          • Figure 17: SafePilot crash detection, 2022
                        • Kaiser highlights its digital mental health services
                          • Figure 18: Kaiser mental health support apps, 2022
                          • Figure 19: Kaiser virtual mental health care, 2022
                        • Enriching the customer experience with embedded insurance
                          • Figure 20: Tesla insurance, 2022
                          • Figure 21: Airbnb travel insurance, 2022
                          • Figure 22: Non-traditional insurance buying, by generation, 2022
                        • Life insurers that are able to streamline underwriting stand the best chance of winning younger consumers
                          • Figure 23: Attitudes toward life insurance, by generation, 2022
                          • Figure 24: Life insurance ownership, by generation, 2022
                          • Figure 25: Ethos Facebook ad, 2022
                      • The Insurance Consumer – Fast Facts

                        • Insurance Ownership

                          • 8 in 10 consumers have some type of P&C insurance
                            • Figure 26: P&C insurance ownership, 2022
                          • Over 80% of US adults have health insurance
                            • Figure 27: Health insurance ownership, 2022
                        • Attitudes toward Insurance

                          • Most consumers want providers to focus on preventative and mental health care
                            • Figure 28: Opinions on preventative and mental health care, 2022
                          • Over half trust the insurance industry less now than they did five years ago
                            • Figure 29: Trust in insurance companies, by age, 2022
                          • Consumers more open to sharing mileage-based data than behavior-based
                            • Figure 30: Types of data consumers are willing to share, 2022
                        • Attitudes toward Non-Traditional Insurance Coverage

                          • Nearly half of consumers open to housing all their insurance policy with one provider
                            • Figure 31: Interest in single, multi-purpose insurance, by age, 2020 vs 2022
                          • Traditional insurers continue to reign supreme over non-traditional providers
                            • Figure 32: Non-traditional insurance buying, by generation, 2022
                        • Interest in Insurance Technology

                          • Behavior-based insurance continues to grow in light of rising inflation
                            • Figure 33: Usage-based insurance adoption over time, 2022
                            • Figure 34: Progressive Snapshot desktop display ad, 2022
                          • Millennials slightly more preferential to mileage-based insurance, while Boomers prefer behavioral-based
                            • Figure 35: Interest in usage-based insurance, by generation, 2022
                          • Smart home device interest remains strong, with opportunities to increase adoption
                            • Figure 36: Interest in and usage of monitoring technology, 2022
                            • Figure 37: AmFam email, 2022
                        • Appendix – Data Sources and Abbreviations

                          • Data sources
                            • Consumer survey data
                              • Marketing creative
                                • Abbreviations and terms
                                  • Abbreviations

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