PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1930183
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1930183
The global insurtech market was valued at USD 19.06 billion in 2025 and is projected to grow to USD 23.54 billion in 2026, reaching USD 132.71 billion by 2034, with a CAGR of 24.1% during the forecast period. North America dominated the market in 2025, accounting for 47.9% share, reflecting the region's advanced digital infrastructure and strong adoption of innovative insurance technologies.
Insurtech refers to the integration of technology into the insurance sector to enhance efficiency, reduce operational costs, and improve customer experience. Companies in this space provide solutions through digital platforms, Software as a Service (SaaS), and mobile applications. The market growth is primarily driven by the demand for digital solutions, AI-powered analytics, and seamless insurance experiences, along with shifting consumer expectations for accessible, personalized, and automated insurance services.
For example, in March 2024, CNB Bank & Trust (CIBC) partnered with Insuritas to launch a fully functional digital insurance platform, integrating Insuritas' BUNDLE solution for retail and commercial clients. This demonstrates the growing trend of product-driven growth models focused on accessibility and customer convenience.
Impact of Generative AI
The adoption of Generative AI is reshaping insurtech by enabling personalized policy offerings. AI analyzes customer data to design tailored insurance plans that match individual risk profiles, preferences, and behavior. This allows for more accurate pricing and potentially lower premiums. Generative AI is expected to significantly influence product development, underwriting, claims processing, and customer satisfaction in the coming years.
Market Dynamics
Drivers: The primary driver is the digital transformation in insurance, supported by AI, machine learning, cloud computing, and automation. For instance, Lemonade, an AI-driven insurer, uses its AI bot "Maya" to streamline claims and personalize policies, minimizing human intervention and improving operational efficiency.
Restraints: Data privacy concerns remain a challenge due to the use of distributed ledger technologies and varying international regulations, which may hinder market expansion.
Opportunities: The rise of peer-to-peer (P2P) insurance models offers opportunities for community-driven insurance solutions that reduce administrative costs and provide transparency. In 2023, Friendsurance in Germany enabled users to pool premiums in small groups, sharing costs in case of claims, with refunds if no claims occurred.
Market Trends
The market is witnessing a shift toward fully automated and embedded insurance platforms. Companies such as Root Insurance utilize telematics and smartphone apps to monitor driving behavior and determine premiums automatically, offering a seamless, on-demand experience. Embedded insurance, integrated into product purchases, is gaining traction for its convenience and accessibility.
Competitive Landscape
Key players include DXC Technology, Majesco, Oscar Insurance, Shift Technology, ZhongAn Insurance, Wipro, and Lemonade, employing strategies such as partnerships, acquisitions, and AI integration to expand market presence. Notable developments include Lemonade acquiring an AI claims automation startup in January 2024 and Zego expanding fleet insurance to Southeast Asia in March 2024, reflecting global expansion and technological innovation.
Investment Analysis and Opportunities
Investments in digital platforms, SaaS, and mobile applications are expected to drive market growth, with companies seeking to enhance accessibility, personalization, and customer engagement. The market offers lucrative opportunities for innovators adopting AI, analytics, and mobile-first solutions.
Conclusion
The insurtech market is poised for substantial growth, reaching USD 132.71 billion by 2034, driven by AI-powered solutions, digital transformation, P2P insurance models, and automated processes. North America leads adoption, while Asia Pacific and Europe present significant growth opportunities. The market's expansion reflects increasing demand for personalized, accessible, and efficient insurance services, positioning insurtech as a transformative force in the global insurance industry.
Segmentation By Component, Application, Technology, End-User, and Region
Segmentation By Component
By Application
By Technology
By End-User
By Region
Companies Profiled in the Report NTT Data Corporation (Japan), Hexaview Technologies, Inc. (U.S.), InsureMO Corporation (Singapore), Damco Group (U.S.), DXC Technology (U.S.), Insurance Technology Services (U.S.), Majesco (U.S.), Oscar Insurance (U.S.), Quantemplate (U.S.), and Shift Technology (France)