Generative AI in Insurance Global Market Report 2024

The generative AI in insurance market size has grown exponentially in recent years. It will grow from $0.78 billion in 2023 to $1.08 billion in 2024 at a compound annual growth rate (CAGR) of 39.3%. The expansion observed in the historic period can be attributed to several factors, including the growing demand for fraud detection solutions, regulatory compliance requirements imposed on the insurance sector, the need for operational efficiency enhancements, and the proliferation of data.

The generative AI in insurance market size is expected to see exponential growth in the next few years. It will grow to $4.1 billion in 2028 at a compound annual growth rate (CAGR) of 39.5%. The anticipated growth in the forecast period is expected to be driven by several key factors, including enhanced fraud detection capabilities, predictive analytics for risk assessment, customer experience enhancement initiatives, gaining competitive advantage, and the integration of emerging technologies. Additionally, major trends anticipated in this period include the adoption of hyper-personalized insurance policies tailored to individual needs, predictive risk modeling to proactively manage risks, automated claims processing for efficiency, AI-driven customer service for personalized interactions, and a focus on ethical AI governance to ensure responsible use of artificial intelligence in insurance operations.

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 involve contractual agreements between an insurance provider and an individual or entity, offering financial protection against specific risks in exchange for premium payments. The rising demand for insurance stems from its ability to provide financial security to individuals, businesses, and organizations against unforeseen events and risks. Generative AI plays a crucial role in this context by analyzing data related to insurance plans to personalize offerings, tailoring them to individual needs and preferences, thus making insurance options more appealing. For instance, according to the United States Census Bureau in September 2023, the percentage of individuals with health insurance increased to 92.1% in 2022, equivalent to 304 million people, compared to 91.7% in 2021, representing 300.9 million individuals. This upward trend in insurance demand is a key driver behind the growth 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 March 2022, RenewBuy, an India-based online insurance aggregator platform developer, acquired Artivatic.AI for an undisclosed amount. This strategic acquisition by RenewBuy is aimed at enhancing its technological solutions across the insurance value chain, from sales to underwriting and claims processing, to improve profitability through cost synergies, procurement, and services. Artivatic.AI, an India-based developer of an Insurtech platform, focuses on automating insurance sales and processing.

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 2023. The regions covered in the generative AI in insurance market report are Asia-Pacific, 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, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Generative artificial intelligence in insurance involves leveraging AI techniques and algorithms within the insurance sector to generate new information, insights, or products that enhance various aspects of insurance operations and services. It aids insurers in accurately assessing risks, streamlining processes such as underwriting and claims, improving customer service, and innovating new products.

The primary technologies driving generative AI in insurance are machine learning and natural language processing (NLP). Machine learning, a subset of AI, focuses on developing statistical models and algorithms that enable computers to learn and improve at specific tasks without explicit programming. These technologies are deployed across on-premise and cloud-based platforms to support various applications, including personalized insurance policies, automated underwriting, claims processing automation, fraud detection and prevention, virtual assistants, customer support, and others, catering to both individual policyholders and commercial policyholder end-users.

The generative AI in insurance market research report is one of a series of new reports that provides generative AI in insurance market statistics, including generative AI in insurance industry global market size, regional shares, competitors with a generative AI in insurance market share, detailed generative AI in insurance market segments, market trends and opportunities, and any further data you may need to thrive in the generative AI in insurance industry. This generative AI in insurance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

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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