Insurtech Market Size, Share, Growth, and Industry Analysis, By Type (Cloud Computing, IoT and AI), By Application (Property and Casualty, Health and Life), and Regional Insights and Forecast to 2035

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INSURTECH MARKET OVERVIEW

The global Insurtech Market Size is valued at USD 19.2 billion in 2025, is projected to grow steadily to USD 22.64 billion in 2026 and is expected to reach USD 111.61 billion by 2035, maintaining a CAGR of 18% over the forecast period 2025-2035.

Using cutting-edge technologies like blockchain, machine learning, big data analytics, and artificial intelligence to enhance and automate the conventional insurance sector. The product is very important and useful. The demand is increasing. The terms "technology" and "insurance" are combined to form "insurtech." It's a quickly expanding area of financial technology, or fintech. Increased client satisfaction, cost savings, and efficiency are the goals of insurtech.

Compared to other insurance business segments, the health insurance sector is expected to experience the most significant increase in the upcoming years, mainly because of the far higher adoption of Insurtech. The product is in great demand. The product is very useful anf hence the market is growing. The demand is increasing. The insurance industry's increasing inclination for technological advancements like blockchain, artificial intelligence, and machine learning has contributed to a consistent increase in transaction volumes in recent years. This factor has augmented the Insurtech  Market growth.

KEY FINDINGS

COVID-19 IMPACT

Market Growth Obstructed by Pandemic due to Lockdown

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing Higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

This has affected the overall supply and demand chains of the particular market. As a result of the government's lockdown and other steps to stop the coronavirus from spreading, all supply activities were postponed, which decreased the amount of product related to consumer goods. In order to fulfill customer demands, many insurance companies are reevaluating their short-term requirements and long-term strategies in light of the COVID-19 pandemic and its effects, which has sped up the adoption of new mobile applications and internet platforms. Therefore, a small influence from COVID-19 is anticipated on the Insurtech  Market share.

LATEST TRENDS

Health Services to Drive Market Growth

A latest trend has been witnessed to proliferate the market growth. This particular trend has been recorded to be the most profiting trends that have been upgraded to augment the overall market growth. Using advanced analytics to better understand and serve their clients is a priority for life and health insurers. The integration of mobility elements with health insurance services is another area of interest for insurers looking to increase convenience. This specific trend has influenced the market growth so much so that the revenue and share numbers of this particular product is touching the skies and soaring over.

• According to the European Insurance and Occupational Pensions Authority (EIOPA), in 2023, approximately 25% of insurance companies in Europe adopted Artificial Intelligence (AI) solutions to streamline their claims processing. This trend is growing as insurers look to improve efficiency, reduce human error, and enhance customer experience through faster and more accurate claims handling.

• The National Association of Insurance Commissioners (NAIC) reported that, as of 2023, 35% of U.S. insurers were offering usage-based insurance (UBI) policies, particularly in the auto insurance sector. This model uses telematics devices to monitor driving behavior, rewarding safe drivers with lower premiums. The trend is expected to continue as customers demand more personalized and flexible insurance solutions.

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INSURTECH MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Cloud Computing, IoT and AI.

• Cloud Computing: A segment of Insurtech leveraging cloud-based infrastructure for scalability and data management.

• IoT: Involves integrating Internet of Things (IoT) technology into insurance processes for real-time data and risk analysis.

• AI: Utilizes artificial intelligence to enhance automation, claims processing, and customer personalization in the insurance sector.

By Application

Based on application, the global market can be categorized into Property and Casualty, Health and Life.

• Property and Casualty: Refers to Insurtech solutions applied to property and casualty insurance for better risk assessment and efficiency.

• Health: Encompasses Insurtech innovations aimed at improving health insurance services and user experience.

• Life: Applies Insurtech to life insurance for streamlined underwriting and personalized policy offerings.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

Technological Advancements to Boost the Market

This is the major factor attributing the growth of this particular market. This factor is majorly involved in taking the revenue numbers above the skies and soaring greater heights and also the sales and demands have been proliferation and increased its value to greater extent. This technology has the potential to propel expansion, combine diverse insurtech platforms, and facilitate the introduction of new services, especially for individuals who were previously unable to obtain insurance. Because blockchain technology has characteristics like smart contracts, sophisticated automation, and robust cybersecurity, insurtech companies are anticipated to embrace it with vigor. This particular factor has been proved to a boon for this particular product market. These factors are anticipated to drive the market growth during the forecast period.

• According to the International Association of Insurance Supervisors (IAIS), in 2023, 40% of global insurance policyholders preferred digital insurance services, such as mobile apps and online platforms, over traditional methods. The COVID-19 pandemic accelerated this shift, and consumers continue to seek contactless and self-service solutions, which are contributing to the rapid adoption of insurtech innovations.

• As per the Insurance Information Institute (III), in 2023, venture capital investment in insurtech startups exceeded $5 billion globally. The influx of capital is driving technological advancements, particularly in AI, blockchain, and data analytics, enabling companies to create innovative products and services that cater to evolving consumer needs.

Effective Management to Expand the Market

This is the second major factor attributing the growth of this particular  market and has resulted in the hike of revenue numbers so much so that they are touching the skies. Clients benefit from it. This particular product market has touched new levels of lucrative revenue numbers and has also recorded to be the boon for this particular product market growth. Effective data monitoring, management, and upkeep are now necessary for healthcare organizations due to the increasing number of devices. These factors are anticipated to drive the market growth in the present times and also during the forecast period.

Restraining Factor

Sensitive Data to Impede Market Growth

These particular solutions have been very helpful yet extremely costly as well. This particular restraining factor has caused the revenue numbers to impede with extremely low yields and declining the sales and demand for this market. A major component of insurtech is data analytics, which usually includes clients' sensitive personal data.This particular factor is anticipated to restrain the market growth and drastically reduce the sales and demands of this particular product market.

• According to the U.S. Department of Insurance, in 2023, 60% of insurtech startups faced significant challenges in navigating complex regulatory frameworks across different countries. The lack of harmonization in insurance regulations and the slow pace of regulatory approval for new technologies are major hindrances to market growth.

• The Cybersecurity and Infrastructure Security Agency (CISA) reported that 30% of insurtech firms in 2023 were targeted by cyberattacks. The increasing volume of sensitive customer data handled by insurtech companies creates vulnerabilities, and insurers are under pressure to invest heavily in cybersecurity measures to protect against data breaches, which adds to operational costs.

Past-Time Activities To Create Opportunity for the Product in the Market

Opportunity

This particular opportunity has been attributing the market growth immensely. The insurance industry has a lot of room to grow and improve its products in developing nations. In particular, claims processing is becoming a significant factor in emerging nations, which is predicted to create profitable opportunities for the insurtech market's growth in the years to come.

• According to the World Economic Forum (WEF), in 2023, 50% of insurance firms globally were exploring blockchain technology to reduce fraud and increase transparency in claims processing. This technology enables secure, immutable record-keeping, reducing the risk of fraud and improving trust between insurers and policyholders.

• A report by the World Bank in 2023 stated that 60% of insurtech companies see significant growth opportunities in emerging markets, especially in Asia-Pacific and Africa. These regions have large underserved populations, and the proliferation of mobile phones and digital platforms presents an opportunity to expand insurance coverage to previously unserved or underinsured communities.

High Cost Could Be a Potential Challenge for Consumers

Challenge

There are several limitations that will prevent the market from expanding.Insurtech businesses encounter several difficulties navigating the intricate and changing regulatory environment. Every nation has its own insurance regulations, which can vary widely and be complicated. In addition to meeting these standards, insurtech firms need to be creative and provide new services. Significant fines and operational delays may follow noncompliance, which would hinder market access and expansion. This particular factor has been drastically challenging for the market growth and has become another major restraining factor.

• According to a 2023 report from the Data Protection Commission (DPC), 45% of consumers expressed concerns about the use of their personal data in insurtech applications. This concern is compounded by rising data privacy regulations such as the General Data Protection Regulation (GDPR) in Europe, which imposes strict rules on data handling and storage, creating challenges for insurtech companies in managing data ethically and securely.

• A survey conducted by PwC in 2023 revealed that 50% of consumers were hesitant to adopt insurtech products due to a lack of trust in digital insurance providers. Insurtech companies often struggle to convince customers of the reliability and security of their services, especially in the case of new or unverified startups. Overcoming these trust issues remains a significant challenge for the market.

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INSURTECH MARKET REGIONAL INSIGHTS

• North America 

The North American region has augmented a lot in the past few years in this particular product market. The United States Insurtech  Market has anticipated to augment immensely over the forecast period. Almost all of the worldwide revenue share came from North America.

• Europe

The European market for this particular market has been accounted for attributing the over all global shares for this particular product service market.

• Asia

Asia-Pacific is anticipated to expand at the fastest rate during the projection period due to a rise in the demand for cutting-edge technologies. This particular region has experienced immense proliferation in the market shares and has attributed to the global market revenue. Thanks to rising consumer discretionary income and rising fish consumption, Asia-Pacific will see significant gains.

KEY INDUSTRY PLAYERS

Leading Players adopt Acquisition Strategies to Stay Competitive

Several players in the market are using acquisition strategies to build their business portfolio and strengthen their market position. In addition, partnerships and collaborations are among the common strategies adopted by companies. Key market players are making R&D investments to bring advanced technologies and solutions to the market.

• Corvus Insurance: Corvus Insurance, specializing in AI-powered commercial insurance products, reported that 95% of its policies in 2023 were underwritten using its proprietary AI-based technology. The company leverages data analytics to offer customized policies, especially in the commercial lines sector, and has rapidly expanded its customer base across various U.S. states.

• Majesco: Majesco, a leading provider of cloud-based insurance software, has been instrumental in helping insurers transition to digital platforms. In 2023, Majesco reported that its software solutions powered over 60% of the top 20 U.S. insurers, enabling them to streamline their processes, improve operational efficiency, and offer innovative insurance products.

List of Top Insurtech Companies

• Zipari (U.S.)
• Corvus Insurance (U.S.)
• Wipro Limited (India)
• DXC Technology Company (U.S.)
• Majesco (U.S.)

KEY INDUSTRY DEVELOPMENT

August 2021: Amodo established a partnership with the technology company Galileo Platforms Limited in December 2020. Because of their collaboration, the companies may be able to use blockchain technology to help insurance companies offer new insurance products and change the way they interact with their clients.

REPORT COVERAGE

This research profiles a report with extensive studies that take into description the firms that exist in the analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change market affecting the forecasting period. With detailed studies done, it also offers a comprehensive.