On-Demand Insurance Market Report 2026

The on-demand insurance market size has grown rapidly in recent years. It will grow from $6.31 billion in 2025 to $7.24 billion in 2026 at a compound annual growth rate (CAGR) of 14.8%. The growth in the historic period can be attributed to growth of mobile internet penetration, rising demand for flexible insurance products, early adoption of digital insurance platforms, increasing use of app-based services, expansion of gig economy workforce.

The on-demand insurance market size is expected to see rapid growth in the next few years. It will grow to $12.13 billion in 2030 at a compound annual growth rate (CAGR) of 13.8%. The growth in the forecast period can be attributed to growing adoption of embedded insurance solutions, rising investments in insurtech platforms, expansion of micro-duration insurance products, increasing demand for real-time risk assessment, growing regulatory support for digital insurance models. Major trends in the forecast period include increasing adoption of usage-based insurance models, rising integration of ai for dynamic pricing, growing deployment of mobile-first insurance platforms, expansion of event-based coverage offerings, enhanced focus on instant claims processing.

The on-demand insurance market is poised for growth driven by the increasing adoption of digital platforms. These platforms facilitate the purchase, management, and customization of insurance policies online, responding to consumer demand for convenience, technological advancements, and competitive pricing. Digital platforms simplify the insurance buying process and boost consumer confidence in their coverage decisions. For example, e-commerce sales in the first quarter of 2024 rose by 8.6% compared to the same period in 2023, highlighting the significant role of digital adoption in driving market expansion.

Leading companies in the on-demand insurance sector are focusing on innovation to offer more personalized and flexible coverage options. One notable advancement is mobile telematics-based comprehensive motor insurance, which uses real-time driving data to accurately assess risk, tailor premiums based on usage, and enhance customer engagement. In July 2023, Zuno General Insurance (formerly Edelweiss General Insurance) introduced SWITCH, an app-based solution that calculates personalized premiums and promotes safer driving habits through real-time data insights. This approach transforms traditional motor insurance by providing a customer-centric, data-driven experience.

In April 2023, Zinnia Tech Solutions LLC expanded its capabilities in the on-demand insurance market by acquiring Acquire Policygenius Systems. This strategic move integrates digital insurance technologies and enhances product offerings and digital distribution. Policygenius, a prominent digital insurance marketplace, plays a pivotal role in expanding Zinnia Tech Solutions' reach and expertise in catering to the evolving demands of the on-demand insurance sector.

Major companies operating in the on-demand insurance market are Zego, Cuvva, Metromile, Getsafe, Trōv, Sure, Slice Insurance, Thimble, Tapoly, SkyWatch, Lemonade, Next Insurance, Hippo, Root Insurance, Bought By Many, Marshmallow, Inshur, By Miles, Cover Genius, Urban Jungle, Hepster.

North America was the largest region in the on-demand insurance market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the on-demand 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 on-demand insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The on-demand insurance market includes revenues earned by claims management, policy administration, risk assessment, and customer support. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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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