The global sales of insurtech market are estimated to be worth USD 25,406.2 million in 2025 and anticipated to reach a value of USD 257,816.7 million by 2035. Sales are projected to rise at a CAGR of 26.1%% over the forecast period between 2025 and 2035. The revenue generated by insurtech in 2024 was USD 20,267.4 million.
The Insurtech market refers to the application of technology innovative solutions in the insurance sector to improve efficiency, tailored offering, and improve the overall customer journey. It uses AI, machine learning, blockchain, and big data analytics to simplify the claims process, underwriting, fraud detection, and risk assessment. Insurtech firms build digital-first solutions, resulting in minimized operational costs along with increased accessibility and transparency. The market comprises start-ups, traditional insurers embracing digital transformation, and tech providers building SaaS-based platforms for automation. Driven by increasing demand for personalized insurance products and frictionless digital engagement, insurtech is transforming the industry to allow for real-time decision-making and on-demand policy management.
Global Insurtech Industry Assessment
| Attributes | Key Insights |
|---|---|
| Estimated Size, 2025 | USD 25,406.2 million |
| Projected Size, 2035 | USD 257,816.7 million |
| Value-based CAGR (2025 to 2035) | 26.1%% |
The characteristics that make insurtech discrete include AI driven processing of claims, telematics based vehicle insurance, parametric coverage, usage based pricing, blockchain to prevent fraud, and chatbots to engage with customers. Digital underwriting and predictive analytics allow insurers to evaluate risk more accurately. Applications include health, life, auto, property, commercial and travel insurance. Insurtech improves policy management, fraud detection, and customer engagement using mobile-first applications. It also enables embedded insurance within e-commerce, gig economy platforms, and smart home systems. Cloud-based insurance solutions and automation tools have gained momentum, propelling innovation in the field while enhancing the approachability and efficiency of policies.
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The below table presents the anticipated CAGR for the global insurtech market over several semi-annual periods covering from 2025 to 2035. H1 represents first half of the year from January to June, H2 spans from July to December, which is the second half. In the first half H1 of the year from 2024 to 2034, the business is predicted to surge at a CAGR of 25.8%, followed by a higher growth rate of 26.4% in the second half H2 of the same year.
| Particular | Value CAGR |
|---|---|
| H1, 2024 | 25.8% (2024 to 2034) |
| H2, 2024 | 26.4% (2024 to 2034) |
| H1, 2025 | 25.6% (2025 to 2035) |
| H2, 2025 | 26.3% (2025 to 2035) |
Moving into the subsequent period, from H1 2025 to H2 2035, the CAGR is projected to decrease slightly to 25.6% in the first half and remain slightly higher at 26.3% in the second half. In the first half H1 the market witnessed a decrease of 20 BPS while in the second half H2, the market witnessed a decrease of 10 BPS.
Rising Demand for Personalized and Usage-Based Insurance
The insurtech market is driven significantly by the growing demand for personalization and usage-based policies in the field of insurance. Traditional insurance models work on the principle of broad risk pools based on behaviors, which ends up with one-size-fits-all pricing models. In contrast, emerging technology such as big data analytics, artificial intelligence (AI), and the Internet of Things (IoT) has allowed insurers to provide dynamic coverage by using real-time information.
Usage-based insurance (UBI), especially in auto and health lines, has grown. Telematics-based auto insurance tracks driving behaviors with sensors and GPS data and rewards safer drivers with lower premiums. Wearable tech dyad - health insurance providers combine with devices to monitor levels of fitness and reward healthier choices with variable pricing structures on premiums.
This move toward real-time data-driven pricing fosters transparency and improves customer satisfaction while curbing fraudulent claims.
On-demand and microinsurance models also address coverage needs in the gig economy or for short periods of time. Digital platforms have the potential to provide policyholders the ability to easily activate, pause, or customize policies via mobile apps, among other options. The increasing uptick in embedded insurance, where policies are integrated into the digital transaction (travel, e-commerce, and the ride-hailing industry) propels insurtech growth too.
There are also new regulatory changes in support of fair pricing mechanisms and consumer-driven choices about insurance that are accelerating this trend. This offers an opportunity for insurtech startups to ride this wave, often in collaboration with legacy insurers to create more customer-centric solutions.
The limit of one data source will be broken with the development of AI and predictive analytics, which will continue to explore personalized and usage-based insurance models that will, thus, completely overturn traditional underwriting and pricing models, enabling to promote insurance cover at an individual level.
AI, Big Data, and Blockchain Transforming Claims and Underwriting
Claims processing, underwriting, and fraud detection in the insurtech market are reformed by technological advances in AI, big data, and blockchain. Solutions like automation and predictive analytics are becoming important tools as traditional insurance workflows can often be slow, complex, and inefficient.
AI-powered underwriting improves risk analysis through the evaluation of large datasets, which include credit history, medical records, and behavioral trends. Compared to conventional underwriting, machine learning algorithms are capable of identifying patterns that human underwriters may not notice, helping to enhance accuracy and decrease manual intervention.
This leads to speedier approval of policy and more competitive pricing. It’s the role of AI chatbots and virtual assistants in modern communication that simplifies a customer interaction due to a lower reliance on human-based agents.
Blockchain Also Improves Transaction Security & Transparency. Smart contracts permit claims handling to be automated, where policy criteria are verified and confirmed before any disbursements are released. This avoids dispute, reduces fraud, and cuts administrative costs. For example, some parametric insurance policies that cover weather-related damages employ real-time data to automatically process claims if a set of predetermined conditions is satisfied.
Fraud detection and risk management is one of the key areas where big data analytics is used. Using historical claims data analysis, insurers can identify suspicious activity early on and reduce fraud before it takes shape. Insurers can also use predictive analytics to build much more robust risk models to achieve more accurate customer segmentation and pricing strategies.
With the trend towards data-driven strategies emphasized by regulatory agencies, insurtech companies are leveraging AI, blockchain, and analytics to improve various insurance functions. These technologies will only further drive operational efficiencies, lower costs, and improve customer trust in digital insurance offerings.
Regulatory Compliance Challenges Hindering Insurtech Growth
Insurance laws differ in different regions, so the insurtech market faces threatning regulatory challenges. Meeting local and international regulations including data protection legislation (GDPR, CCPA), as well as industry-specific guidance, heightens operational complexity for insurtech providers. Many digital-first insurers cannot reconcile an AI-driven underwriting or a blockchain-based claim to the way insurance has always been done.
Of course, applying for regulatory approval takes time, which can delay the entry of startups and new products into the market. Furthermore, consumer protection policies require a high level of transparency in pricing models and claims processing which calls for a continuously updated system.
Embedded insurance makes it even more complicated when multiple jurisdictions are at play for third-party platforms. Moreover, a significant portion of insurtech solutions is based on cloud-based infrastructure and big data analytics, for which regulators impose stringent cybersecurity requirements.
Data breaches and algorithmic biases in AI-based underwriting may result in legal repercussions. However, the slow pace of adapting the law to the massive changes brought about by new technologies is one of the biggest hurdles that affects innovation and is leveling down that industry despite the lobbying by the industry for the modernization of regulation.
Consumer Trust and Data Privacy Concerns in Insurtech Adoption
The proliferation of digital transactions and online services has resulted in a growing need for insurtech solutions. Owing to this, e-commerce, fintech, and online banking platforms need robust authentication mechanisms put in place to block fraud and guarantee secure customer onboarding.
The growing preference for digital payments and increased focus on mobile banking are catalyzing AI-based insurtech, which can help provide seamless and frictionless user authentication. The medium global crisis, such as remote work, education, as well as rising at-home cyberattacks have increased the demand for secure and managed access solutions till the market.
Companies are now using biometric authentication and liveness detection technology to improve the accuracy of the verification process while ensuring the convenience of their users. Similarly, government initiatives aimed at expanding national ID systems and e-KYC are further driving growth in the market.
Cloud-based insurtech solutions are becoming more popular as they offer scalability, automation, and real-time processing capabilities. Increases in cyber threats and regulatory requirements are forcing enterprises to invest in sophisticated insurtech solutions, providing incumbents with market opportunities.
Insurtech Market Growth Between 2020 and 2024 between was strong, powered by heightened digital adoption, AI-powered automation, and greater consumer demand for personalized insurance solutions. The pandemic was a big impetus for the shift to digital insurance, too, as companies focused sharply on contactless claims processing, and AI-based underwriting.
It’s all having an effect on things like embedded insurance, parametric coverage, and telematics-led auto insurance. Cloud policy administration and digital distribution platforms began to take hold, and traditional insurers signed alliances with startups to incorporate insurtech capabilities. But bigger adoption was restricted due to regulatory headwinds, cyber vulnerabilities and consumer skepticism over algorithmic underwriting. The insurtech market is blossoming, but remained fragmented with players addressing specific niches like health, auto, or microinsurance.
From 2025 to 2035, the insurtech sector is projected to grow, as businesses will shift demand towards hyper-personalized, on-demand, and real-time risk, with the advent of tech-enabled systems streamlining people’s lives. The use of decision-making based on AI will enhance underwriting accuracy, which will ultimately lead to fewer fraudulent claims, and an overall better experience for your policyholders. Block-chain based Smart contracts will accelerate the Claims settlements providing more transparency into the process.
Automobile, health, and home insurance companies that incorporate HD cameras and IoT devices will create usage-based/behavior-driven pricing structures. Embedded insurance will go mainstream, as digital commerce platforms integrate policies into purchases without thinking. This regulatory modernization will likely pave the way for a more standardized framework enabling quicker product rollouts.
Insurtech Adoption Will Accelerate in Emerging Markets, Boosted by Digital Financial Inclusion Despite Economic Headwinds And the next decade will see the convergence of insurtech, fintech and AI-based risk modeling driving ever more efficient products to market to make insurance an accessible, data-driven and tailored experience for each consumer.
Tier-1 insurtech firms are recognized market leaders with robust global footprints, significant financial backing, and the integration of cutting-edge technologies. They thrive on AI-based underwriting, blockchain-enabled claims and embedded insurance models. Digital insurance disruptors such as Lemonade, Root Insurance, and ZhongAn differentiate themselves through a combination of advanced analytics, regulatory professionalism, and partnerships with traditional insurance players to deliver innovation, scalability, and customer acquisition.
Tier-2 insurtechs are newer entrants that have a solid presence in areas such as telematics, AI-enabled claims processing or microinsurance. They advertise as local, niche, and competitive. For example, Hippo, Next Insurance and Alan are in the business of targeting underserved segments, providing lean and agile, cloud-based solutions that can compete with Tier-1 players on both ends of the distribution spectrum - cost-effective, customer-first policies and advanced tools for evaluating risk.
Tier-3 players are startups and early stage companies experimenting with artificial intelligence (AI), internet of things (IoT), blockchain, parameter insurance models, etc. These companies are concentrated within very localized markets or in B2B partnerships, and they offer specialized products for gig economy workers, travel insurance, and embedded insurance. Other examples are Qover, BIMA & Trov who use API-driven platforms and alternate distribution channels to build a new experience for digital consumers.
The section below covers the industry analysis for the insurtech market for different countries. Market demand analysis on key countries in several regions of the globe, including the USA, Germany, China, India and Australia & New Zealand is provided.
| Country | Value CAGR (2025 to 2035) |
|---|---|
| USA | 24.3% |
| Germany | 23.0% |
| China | 27.3% |
| India | 29.7% |
| Australia New Zealand | 27.2% |
The USA is the biggest insurtech market due to AI-powered automation, favourable regulations, and a strong fintech ecosystem. Lemonade, Root Insurance and Next Insurance are examples of leading companies utilizing AI and big data to accelerate underwriting, fraud detection and claims automation.
Demand, in part, was driven by the rapid adoption of embedded insurance they are seeing across e-commerce, auto and travel, she said. It has become clear that the regulatory landscape is shifting; state-level sandbox programs are allowing startups to test innovative models in advance of mass rollouts. This increase in investment has also created more long-term strategic partnerships between traditional insurers and insurtech startups to better integrate new digital-first solutions. Wide smartphone adoption and increasing consumer inclination toward self-service policy management are driving the growth.
Telematics-based auto insurance, AI-driven health insurance, and blockchain-backed risk assessment models are gathering pace. The move away from risk-based rating (tailored and complicated based on risk and insurable interest) toward usage-based and behavior-driven pricing is upending the industry and opening avenues to affordable personalized insurance. Sustained venture capital investment keeps product making and market expanding going.
China’s insurtech market is getting deep integration with digital ecosystems from giants such as ZhongAn Online, WeSure, and Ping An’s OneConnect, supporting its growth. The boost in embedded microinsurance has been enabled by the adaptability of WeChat and Alipay with consumers able to consume policies through frictionless purchases. AI-based underwriting and blockchain-based claims management are equally rapidly making their mark, increasing transparency and efficiency in insurance operations.
China is gradually expanding its regulatory framework, allowing for insurtech, with pilot programs promoting AI-based risk assessment. This is powered partly by government support of fintech and digital financial services, which has in turn accelerated insurtech adoption. Tons of IoT devices are being used nowadays, especially in health and auto insurance, which makes personalized pricing and behavior-based policies possible. China’s emphasis is on real-time claims automation, a trend also seen with embedded insurance models for parametric covers for natural disasters and climate risks.
Consumers are generally more willing to rely on AI-driven digital insurance than they are in many Western markets, ensuring solid development. A robust domestic capital investment, coupled with rising international expansion of Chinese insurtech firms, solidifies China as a top insurtech center.
Consumer awareness and the need for digital financial inclusion along with regulatory changes have resulted in rapid growth of insurtech in India. Startups such as Acko, Digit Insurance, and PolicyBazaar have tapped into mobile-first platforms to deliver low-cost, tailored policies to underserved populations.
The Digital India initiative of the government has contributed to the growth of paperless, immediate issuance and availability of insurance policies. The growth of the gig economy where these platforms thrive has led to a rise in demand for microinsurance and on-demand coverage, especially in health and travel sectors.
Claims processing by AI and predictive analytics in the risk assessment field are enhancing about fraud detection and policy pricing. Regulatory reforms like IRDAI’s sandbox framework enable startups to experiment with blockchain, AI, usage-based insurance models, among others. The insurtech players are collaborating with the banks, e-commerce, or telecom players to offer insurance embedded with their day-to-day purchases. India’s climbing internet penetration, robust fintech ecosystem, and growing interest from investors inevitably set the insurtech market for long-term growth and pave the way for millions to have more digital insurance access.
Below section focuses on segment wise analysis in the insurtech sector. This analysis provide market stakeholder the ability to understand the market landscape and invest as per data-driven decisions.
| Insurance Type | Value Share (2025) |
|---|---|
| Health Insurance | 35.5% |
The dominant segment of insurtech remains health insurance, fueled by hikes in healthcare costs, AI-enabled underwriting, and innovations in digital health. Growing adoption of wearable technology, telemedicine, and personalized wellness programs has generated demand for usage-based, AI-powered health policies. Insurtech firms such as Oscar Health, Alan, and ZhongAn utilize AI and big data analytics to improve risk assessment, automate claims processing, and provide real-time policy adjustments.
The COVID-19 pandemic accelerated the pace of digital transformation in the sector with a dramatic increase in paperless, instant policy issuance through mobile apps and embedded health coverage. Fraud detection based on AI and claims management on blockchain have also contributed to transparency and efficiency. Government initiatives are further boosting adoption, as is regulatory support for digital-first health insurance models. Microinsurance/parametric products powered by insurtech improve accessibility in emerging markets. Health insurance is the most evolving segment of the insurtech landscape, as consumers demand flexible, real-time coverage options.
| End User | Value Share (2025) |
|---|---|
| Insurance Companies | 39.7% |
Insurance companies are the traditional dominant segment in the insurtech space, adopting new technologies such as AI, automation, and data analytics to improve areas like underwriting, claims processing, and fraud detection. Traditional insurers are bringing in cloud-based platforms, blockchain-driven smart contracts and telematics-based risk assessment to enable efficiencies and enhance customer engagement.
Companies such as Ping An, Allianz, and AXA are integrating insurtech solutions to enable personalized, on-demand policies and embedded insurance models. Insurers are leveraging AI-powered chatbots, predictive analytics, and automated policy management to lower costs and improve decision-making. Some insurtech startups partner with conventional firms to create digital-first insurance ecosystems that can avail microinsurance and parametric coverage to the broad public.
As regulatory frameworks are evolving to support digital transformation, the insurance providers are investing in SaaS-based platforms and cybersecurity solutions. Insurance companies are still the leading motivators of insurtech adoption across global markets, helping to improve efficiency, customer experience and risk assessment with insurtech innovations.
AI-driven automation, blockchain-enabled claims handling, and telematics-based risk assessment drive product differentiation in a market that is rapidly evolving. The rise of embedded insurance, on-demand coverage, and parametric policies has made the competition fiercer, driving companies to partner with companies across e-commerce, fintech, and the gig economy.
Cloud-based policy administration and API-driven ecosystems have allowed for seamless partnerships, leading to greater accessibility for digital insurance. While AI enables innovation, regulatory compliance continues to be a driving force because firms need to address several trends, including data privacy, cybersecurity, and AI ethics.
The emergence of microinsurance, pay-as-you-use approaches, and near real-time claims processes are fundamentally reshaping customer expectations, requiring insurers to focus on speed, transparency, and personalization. Eliminating gamesmanship is a function of real-time risk assessment that will be enabled by AI-based underwriting and fraud detection. So will the shifting regulatory landscape and the digital transformation.
Recent Industry Developments in Insurtech Market
The global insurtech industry is projected to witness CAGR of 26.1%% between 2025 and 2035.
The global insurtech industry stood at USD 20,267.4 million in 2024.
The global insurtech industry is anticipated to reach USD 257,816.7 million by 2035 end.
South Asia & Pacific is set to record the highest CAGR of 28.1% in the assessment period.
The key players operating in the global insurtech industry include Entrust, Onfido, IDEMIA, Transmit Security, Persona, Incode among others.
| Market CAGR (2023 to 2033) | 18.7% |
|---|---|
| Market Size (2023) | USD 2,513.9 million |
| Expected Market Size (2033) | USD 13,998.3 million |
| Market Size (2023) | USD 16.88 Billion |
|---|---|
| Market Size (2033) | USD 20.83 Billion |
| Market CAGR (2023 to 2033) | 23.4% |
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