Generative AI in Insurance Market Report 2026

The generative ai in insurance market size has grown exponentially in recent years. It will grow from $1.39 billion in 2025 to $1.77 billion in 2026 at a compound annual growth rate (CAGR) of 28.1%. The growth in the historic period can be attributed to increasing digitization of insurance operations, rising demand for operational efficiency, availability of large-scale insurance data sets, early adoption of machine learning models, growing customer preference for digital insurance services.

The generative ai in insurance market size is expected to see exponential growth in the next few years. It will grow to $4.83 billion in 2030 at a compound annual growth rate (CAGR) of 28.5%. The growth in the forecast period can be attributed to increasing investments in generative ai platforms, rising focus on real-time risk assessment, expansion of usage-based insurance models, growing regulatory acceptance of ai-assisted decision-making, increasing demand for hyper-personalized insurance offerings. Major trends in the forecast period include increasing use of generative ai for automated underwriting, rising deployment of ai-driven claims processing, growing adoption of personalized insurance product design, expansion of virtual assistants in customer engagement, enhanced focus on fraud detection automation.

The growing demand for insurance plans is expected to drive the expansion of generative AI in the insurance market in the coming years. Insurance plans are contractual agreements between an insurance provider and an individual or organization, providing financial protection against specific risks in return for premium payments. The need for insurance is rising as it offers individuals, businesses, and organizations a financial safety net against unforeseen events and risks. Generative AI processes insurance plan data to create personalized offerings, customizing them to individual requirements and preferences for more appealing insurance options. For example, in September 2025, according to the United States Census Bureau, a US-based government agency, in 2024, the majority of people (92 percent or 310 million) had health insurance for part or all of the year. Consequently, the increasing demand for insurance plans fuels the adoption of generative AI in the insurance market.

Major players in the generative AI insurance market are focusing on developing Generative Pre-trained Transformer (GPT) tools for insurance to enhance risk assessment accuracy and streamline claim processing. GPT tools for insurance involve the application of advanced natural language processing (NLP) models, such as GPT-3, in the insurance sector. For example, in June 2023, Simplifai Cognitive Services Pvt. Ltd., a Norway-based advanced AI solutions company, introduced Simplifai InsuranceGPT to meet the growing demand for effective AI integration within the insurance industry. Simplifai InsuranceGPT is a bespoke generative pre-trained transformer (GPT) tool tailored for insurers, designed to improve communication efficiency between insurers and their clients through generative AI technology. This innovative product delivers rapid, concise, and accurate responses within a secure framework, addressing the need for efficient AI integration in the insurance sector.

In July 2024, Applied Systems Inc., a U.S.-based software development company, acquired the AI platform Planck. This acquisition allows Applied Systems Inc. to enhance and speed up the integration of AI capabilities, as Planck’s AI platform simplifies underwriting for small and medium-sized businesses by providing real-time data insights to improve risk assessment. Planck is a U.S.-based AI-driven data platform focused on commercial insurance.

Major companies operating in the generative ai in insurance market are Pegasystems Inc., Shift Technologies Inc., Lemonade Inc., DataRobot Inc., Metromile Inc., Artivatic.ai Pvt Ltd., HyperScience Inc., Tractable Ltd., Cape Analytics Inc., Archipelago Analytics Inc., Tinubu Square, Planck Resolution Ltd., Akur8, Zesty AI Inc., Betterview Marketplace Inc., Flyreel Co., Quantemplate Limited, Human API Inc., Groundspeed Analytics Inc., FRISS Inc., Atidot, Claim Genius Inc., Boost Insurance Agency Inc., Kasko Ltd., RiskGenius Inc.

North America was the largest region in the generative AI in insurance market in 2025. The regions covered in the generative ai in insurance market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the generative ai in insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The generative AI in insurance includes revenues earned by entities by providing services such as risk assessment and underwriting, claim processing and fraud detection, customer service and personalization, risk modeling and scenario planning, and product development and innovation. The market value includes the value of related goods sold by the service provider or included within the service offering. The generative AI in insurance market also includes sales of synthetic data generation tools, servers, data storage systems and networking equipment. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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