Insurtech Market Report 2025

The insurtech market size has grown exponentially in recent years. It will grow from $17.08 billion in 2024 to $22.08 billion in 2025 at a compound annual growth rate (CAGR) of 29.3%. The growth in the historic period can be attributed to the strong economic growth in emerging markets, increased digitization of insurance services, increased use of robotic process automation in insurance companies, and increased number of insurtech startups.

The insurtech market size is expected to see exponential growth in the next few years. It will grow to $82.3 billion in 2029 at a compound annual growth rate (CAGR) of 38.9%. The growth in the forecast period can be attributed to the increase in insurance claims, increasing adoption of advanced technologies in the insurance industry, and favorable government initiatives. Major trends in the forecast period include the use of artificial intelligence (AI), focus on intelligent automation solutions, focus on product innovations, focus on adoption of blockchain technology, focus on partnerships and collaborations, and focus on the use of IoT (Internet of things) technology.

The rise in insurance claims is anticipated to propel the growth of the insurtech market in the coming years. Insurtech solutions are increasingly employed to efficiently process claims, assess risk, handle contracts, and underwrite policies. The surge in hospitalization cases during the COVID-19 pandemic has contributed to an uptick in insurance claims. For example, in April 2024, a report from LV=, the largest personal lines insurer in the UK, revealed that in 2023, the company paid out $175.16 million (£135 million) in individual protection claims, reflecting a 6% increase compared to 2022. Thus, the growing number of insurance claims is expected to drive the expansion of the insurtech market.

Favorable government initiatives, especially in developing countries, are expected to drive growth in the insurtech market during the forecast period. For instance, in May 2024, the Office for National Statistics, a UK-based government agency, reported that in 2022, government spending constituted 68.5% of total long-term care expenditures, indicating a real-term growth of 1.4% compared to 2021. Consequently, the rise in government initiatives is anticipated to significantly contribute to the growth of the insurtech market.

Major companies in the insurtech market are increasingly focusing on developing innovative solutions like AI-powered insurance platforms to enhance customer experience. These platforms are digital systems that leverage artificial intelligence technologies to automate and optimize various insurance processes, including underwriting, claims management, and customer service, thereby improving efficiency and decision-making. For example, in June 2024, Sapiens International Corporation, an Israel-based software company, launched its Next-Gen Intelligent Insurance Platform. This platform integrates AI, machine learning, and cloud-native technologies to streamline insurance processes and enhance data-driven decision-making. It allows insurers to innovate rapidly, boost operational efficiency, and deliver superior customer experiences through a comprehensive ecosystem.

Companies in the insurtech market are actively pursuing product innovations and developing new solutions to enhance their market position. In September 2022, Verikai, a US-based insurance technology company, introduced a new product called Med/Rx. This innovative offering leverages machine learning technology to provide insurers with robust insights into medical claims and prescription data, focusing on high-cost conditions, prescriptions, and the most expensive medical diagnoses.

In March 2023, Vista Equity Partners, a U.S.-based private equity firm, acquired Duck Creek Technologies for an undisclosed amount. This acquisition aims to enhance Duck Creek's capabilities in delivering cloud-based software solutions for the property and casualty insurance industry, driving digital transformation and innovation within the insurtech market. Vista plans to leverage its resources and expertise to support Duck Creek's growth strategy, improve operational efficiencies, and expand its market reach in response to the rising demand for advanced insurance technology solutions. Duck Creek Technologies specializes in providing cloud-based software solutions for the property and casualty insurance sector.

Major companies operating in the insurtech market include DXC Technology, Damco Group, Majesco, Shift Technology, Earnix, Simplesurance, Outsystems, Cytora Ltd, Planck Resolution LTD, Bdeo, Allianz (China) Insurance Holding Co., Ltd, Insurance Technology Services, Oscar Insurance, Quantemplate, Tokio Marine & Nichido Fire Insurance Co. Ltd, Aioi Nissay Dowa Insurance Co. Ltd, Sompo Japan Nipponkoa Insurance Inc, Grupo Nacional Provincial, MetLife Mexico, Seguros BBVA Bancomer, AXA Seguros, Banorte Seguros, State Farm Insurance, Nationwide Mutual Insurance Company, Liberty Mutual Group, The Progressive Corporation, American International Group Inc, Bradesco Saude, South America Health Insurance Company, Amil International Medical Assistance, Mapfre Seguros Gerais, Porto Seguro General Insurance Company, Dubai Insurance Company, Alliance Insurance PSC, Union Insurance Company, Zurich Life Insurance Middle East, Al Nabooda Insurance Brokers, National General Insurance Co, Al Buhaira Insurance, Howden Guardian Insurance Brokers LLC, Tawasul Insurance Services LLC, Al Wathba National Insurance Company.

North America was the largest region in the insurtech service market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the insurtech market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the insurtech market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

Insurtech refers to technological innovations designed to enhance the efficiency of the insurance industry. It empowers the creation, distribution, and management of insurance services. By utilizing data analytics, artificial intelligence, and automation, insurtech solutions improve customer experiences, streamline underwriting processes, and reduce operational costs.

The primary products in insurtech encompass health insurance, life insurance, travel insurance, car insurance, business insurance, home insurance, and others. Health insurance provides coverage for medical, surgical, prescription drug, and sometimes dental expenses incurred by the insured, depending on the coverage plan. Various technologies, including blockchain, cloud computing, IoT, artificial intelligence, big data and business analytics, among others, play a significant role in insurtech. These technologies can be deployed on-premises or in the cloud. Insurtech offers solutions and services utilized across diverse sectors such as the automotive industry, banking and financial services, government sector, healthcare industry, manufacturing industry, retail industry, transportation, and others.

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

The insurtech market includes revenues earned by entities by providing solutions that integrate the traditional insurance industry with modern technologies. The term insurtech refers to applying technological innovations to extract cost and efficiency from the current insurance industry model. Insurtech intends to collect information from a variety of sources, including automotive GPS tracking and activity trackers on wristwatches. The information gathered can be utilized to create more precisely defined risk groups, allowing for more competitive pricing of products. 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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