The generative AI in insurance market size has grown exponentially in recent years. It will grow from $1.08 billion in 2024 to $1.51 billion in 2025 at a compound annual growth rate (CAGR) of 39.8%. The growth in the historic period can be attributed to fraud detection needs, regulatory compliance requirements, operational efficiency needs, and data proliferation.
The generative AI in insurance market size is expected to see exponential growth in the next few years. It will grow to $5.7 billion in 2029 at a compound annual growth rate (CAGR) of 39.4%. The growth in the forecast period can be attributed to enhanced fraud detection, predictive analytics, customer experience enhancement, competitive advantage, and emerging technologies integration. Major trends in the forecast period include hyper-personalized policies, predictive risk modeling, automated claims processing, AI-driven customer service, and ethical AI governance.
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 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 report 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 2024. 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.
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).
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 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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Table of Contents
Executive Summary
Generative AI In Insurance Global Market Report 2025 provides strategists, marketers and senior management with the critical information they need to assess the market.This report focuses on generative ai in insurance market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
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Description
Where is the largest and fastest growing market for generative ai in insurance? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The generative ai in insurance market global report answers all these questions and many more.The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.
- The market characteristics section of the report defines and explains the market.
- The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
- The forecasts are made after considering the major factors currently impacting the market. These include:
- The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.
- Market segmentations break down the market into sub markets.
- The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
- The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
- The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.
Scope
Markets Covered:
1) By Technology: Machine Learning; Natural Language Processing2) By Deployment Model: On-Premise; Cloud
3) By Application: Personalized Insurance Policies; Automated Underwriting; Claims Processing Automation; Fraud Detection And Prevention; Virtual Assistants And Customer Support; Other Applications
4) By End-User: Individual Policyholders; Commercial Policyholders
Subsegments:
1) By Machine Learning: Risk Assessment Models; Claims Processing Automation; Fraud Detection And Prevention; Customer Behavior Analysis2) By Natural Language Processing (NLP): AI-Powered Chatbots For Customer Service; Document And Policy Analysis; Sentiment Analysis For Customer Feedback; Automated Underwriting
Key Companies Mentioned: Pegasystems Inc.; Shift Technologies Inc.; Lemonade Inc.; DataRobot Inc.; Metromile Inc.
Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita.
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Delivery Format: PDF, Word and Excel Data Dashboard.
Companies Mentioned
Some of the major companies featured in this Generative AI in Insurance market report include:- 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.
Table Information
Report Attribute | Details |
---|---|
No. of Pages | 200 |
Published | March 2025 |
Forecast Period | 2025 - 2029 |
Estimated Market Value ( USD | $ 1.51 Billion |
Forecasted Market Value ( USD | $ 5.7 Billion |
Compound Annual Growth Rate | 39.4% |
Regions Covered | Global |
No. of Companies Mentioned | 26 |