Digital Insurance Platform Market Size

Global Digital Insurance Platform Market size was valued at USD 135.2 billion in 2023 and is poised to grow from USD 150.88 billion in 2024 to USD 363.04 billion by 2032, growing at a CAGR of 11.6% during the forecast period (2025-2032).

The global digital insurance platform market growth is driven by the demand for customized and easy-to-browse insurance. As customers are demanding on-demand, easy-to-use services, insurers are leveraging digital platforms to enhance customer experience and automate their processes.

Insurtech start-ups and digital insurance markets have contributed further to this growth by enabling insurers to design more customized and adaptable policies. Additionally, the use of artificial intelligence (AI) and machine learning (ML) in insurance platforms is revolutionizing the industry, improving underwriting accuracy, fraud prevention, and claim settlement. Key drivers in the market are increased demand for personalized insurance products, greater adoption of digital technologies by insurers, and regulatory support for insurance innovation. Governments around the world are supporting digitalization in insurance through policy reforms and sandbox programs. Insurers are also highlighting data-driven decision-making to enhance more advanced risk calculation models and offer more competitive pricing.

Opportunities to be pursued or seized include innovation in new insurance products, expanding to unreached markets, and collaboration within the insurance ecosystem. Lemonade, for instance, partnered with AXA in March 2024 to further AI-powered insurance products throughout Europe, making it easier to settle claims and offering bespoke policies. The most recent trends in the digital insurance platform market include growing popularity for usage-based insurance (UBI), mobile-first insurance products usage, and development of embedded insurance. These advancements are revolutionizing the business to enable insurers to offer more consumer-centric and adaptive solutions while spurring growth within the market.

How AI, ML, and IoT Are Reshaping Future of Insurance?

By maximizing efficiency, personalization, and risk estimation, technology breakthroughs, most notably Artificial Intelligence (AI) and Machine Learning (ML), have driven the expansion of the digital insurance platform market. AI-powered solutions have enhanced underwriting and claims handling accuracy and speed. For example, 76% of US insurance companies have deployed generative AI into at least one business function, including customer care and claims management, as reported by a 2024 Deloitte survey. IoT and big data analytics have facilitated the emergence of usage-based insurance policies, enabling insurers to engage in dynamic pricing in real time based on client behavior.

Artificial intelligence technologies are also being employed by industry players and startups to enhance insurance products and risk analysis. FireBreak Risk, the technology company, launched in 2024 an AI-based software that utilizes property images to assess the risk of a wildfire. The software makes the insurers better placed to recognize low-risk properties and offer special rates or customized coverage. These advances are propelling market growth, enhancing client relationships, and increasing the adoption of online insurance platforms.