Insurtech Market
Report ID: SQMIG45E2386
Report ID: SQMIG45E2386
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Report ID:
SQMIG45E2386 |
Region:
Global |
Published Date: November, 2025
Pages:
178
|Tables:
180
|Figures:
76
Global Insurtech Market size was valued at USD 19.41 Billion in 2024 and is poised to grow from USD 29.64 Billion in 2025 to USD 876.06 Billion by 2033, growing at a CAGR of 52.7% during the forecast period (2026–2033).
The Insurtech Market is growing strongly at a fast pace which is primarily driven by the growing demands related to a number of end-use industries such as healthcare, food and beverage, electronics, manufacturing and energy. One notable growth driver is the growth of the healthcare industry, especially given the increase in the use of medical-grade gases such as nitrous oxide and oxygen. The growth of industrialization, especially in emerging economies is driving further growth, particularly in the demand for Insurtech in process industries such as metal fabrication, steelmaking and petrochemicals. Moreover, the growth of clean energy–especially hydrogen for fuel cells, in nations that have transitions towards decarbonization and the key growth drivers are driving further investments into gas production technologies and infrastructure, as a catalysis for industry growth.
Conversely, from the standpoint of restraints, the Insurtech market also faces substantial restraints. A big restraint is the cost to produce and distribute gases which, in particular for gases that require specialized storage and transportation infrastructures, such as, cryogenic tanks, and pipelines. The Insurtech market is also restrained by regulatory issues, and safety issues, such as the handling and emission of carbon dioxide and ammonia-related gases, which create complexities and lead to increase compliance costs for gas producers with governmental regulations on a particular focus for toxic gas emissions, and the steps to be undertaken to meet those regulations for managing their producers. Furthermore, the volatility in raw material prices, such as natural gas used in hydrogen production, directly impacts profitability and long-term contracts, especially in price-sensitive developing markets.
In addition, the fluctuations in prices for raw materials, including such products as natural gas when used to create hydrogen, has implications for higher profitability and long-term contracts in a price sensitive developing market. Even while we have the above restraints, we have positive market forecast expectations because we see positive trends for innovation and consolidation. Major players focus on bright spots such as strategic partnerships, acquisitions, and expansion into new regions to increase market competition and increase the efficiency of supply chains. Technological innovations in gas separation and purification have decreased costs and lessened environmental footprint driving continued market sustainability. Continued emphasis on circular economy and carbon capture utilization and storage (CCUS) projects, we foresee new potential for growth in upcoming years to help offset some of the restraints we see in the current situation.
How AI is Transforming Insurtech Market?
Artificial Intelligence (AI) is transforming the Insurtech market by being more efficient in underwriting, and improving fraud detection and customer experiences. AI-enabled chatbots and virtual assistants/representatives are being used by insurers to provide 24/7 policy support. Additionally, machine-learning models are able to assess risk more accurately by making use of real-time behavior and contextual data. Similarly, claims processing will be more automated and quicker while improving efficiency and accuracy, and reducing operational costs and human error. AI propensity scoring used for predictive analysis allows insurers to offer products on a proactive basis through an understanding of individual needs; which improves customer retention and cross-selling opportunities.
In March 2025, Tractable, an AI-powered Insurtech start-up, announced a partnership with Allianz to improve their marketing response capabilities when it comes to offering auto claims. Tractable uses a unique AI photo analysis tool, combining computer vision and powerful AI learning methods to instantly analyze a customer's images of their vehicle damage. By doing this, the insurer is able to approve claims in mere minutes and not days. This development shows how AI is more than just improving internal processes. Meaning, it's improving customer experiences by speeding up the time to service and improving transparency. This is a major advancement in how traditional workflows can embrace AI into their operations.
Market snapshot - 2026-2033
Global Market Size
USD 12.71 billion
Largest Segment
Software
Fastest Growth
Software
Growth Rate
52.7% CAGR
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Global Insurtech Market is segmented by Component, Insurance Type, Technology, Deployment Mode, Enterprise Size, End-User and region. Based on Component, the market is segmented into Software and Service. Based on Insurance Type, the market is segmented into Automotive, Business, Health, Home, Commercial, Travel and Others. Based on Technology, the market is segmented into Blockchain, Cloud Computing, IoT, Machine Learning, Robo Advisory and Others. Based on Deployment Mode, the market is segmented into Cloud-based and On-premises. Based on Enterprise Size, the market is segmented into Large Enterprises and Small & Medium Enterprises (SMEs). Based on End-User, the market is segmented into Automotive, BFSI, Government, Healthcare, Manufacturing, Retail, Transportation and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Software accounted for the majority of the Insurtech sector growth because of government digitalization initiatives, for example, India's "Digital India" initiative, which requires digital insurance issuance and recognizes DigiLocker as a means to increase accessibility and convenience for policy management platforms. There is also Kuwait's regulatory body that leveraged IruSoft to automate licensing and complaints, facilitating digital insurance and software-based insurance systems faster globally.
The services segment is the fastest-growing Insurtech sector, due to demand for consulting, integration and maintenance support as insurers migrate material parts of their operations to digital. The increase in regulatory tech despite the regulatory burden and jump in consulting for data analytics consultants, according to the UK FCA (2024) which reported 38% increase from reg-tech integration alone, like India's IRDAI, is mandating tech upgrades to their insurers by 2025. The pressure from global government agencies to adapt to Insurtech services is accelerating the process.
Health insurance has seized a dominant market share of the Insurtech market due to Morbidity and mortality analytics for Treasury funds and public healthcare costs, chronic disease increases and global healthcare costs. For example, the WHO has reported 70% increase from COVID for digital health investments. In 2024, the U.S. HHS Department extended AI-derived services in Medicare coverage, while India's Ayushman Bharat Digital Mission accelerated health coverage through nationwide registration of digital health systems covering all sectors.
The automotive segment is the next significant growth area for Insurtech, for the same reasons of government initiatives and regulatory frameworks, and rising rates of adoption. For example, every new vehicle must have GPS capabilities installed in vehicles due to troubling incidents responding to 911 emergencies, especially in the EU, and the IRDAI in India is promoting the use of telematics pricing models. Globally, the market potential for connected car insurance exceeds USD
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North America dominates the Insurtech market, propelled by superior digital infrastructure, insurance coverage, and regulatory advancement. US Department of Health and Human Services (HHS) in 2024, implemented expanded AI-enabled platforms for Medicare and Medicaid and the National Association of Insurance Commissioners (NAIC) continue to provide regulatory sandboxes for innovation. In 2023 North America accounted for over 35% of the market share.
The U.S. Insurtech industry is lead by its strong insurance industry infrastructure, technology innovation, and venture capital funding. In 2024 the NAIC is expanding regulatory sandboxes in twelve states and expanding integrated AI with Medicare, fuelling growth in health Insurtech and auto Insurtech.
Canada is rapidly developing with government-supported initiatives toward digital insurance. In 2024 the Canadian Council of Insurance Regulators (CCIR) initiated open insurance consultations to promote consumer access to data and innovation. Support for AI and fintech hubs in Toronto is accelerating Insurtech activity among startups.
The Asia Pacific region is poised for fast growth as the market is supported by increased digital inclusion, government initiatives focused on health and social insurance reforms, and a large underinsured population. In 2024, India’s Insurance Regulatory and Development Authority of India (IRDAI) required digital insurance companies in India to process all insurance end-to-end digitally, while the Chinese Central Bank Insurance Regulatory Commission (CBIRC) expanded its pilot projects using AI and blockchain to allow insurance companies to monitor their activities electronically.
China is a close second as a competitor in Insurtech, being a user of Insurtech using AI, blockchain and big data. In 2024, the CBIRC to launch pilot zones, to issue licenses to digital-only insurance companies, and approved insurance companies to use blockchain to automate claims. These pilots demonstrate public, private initiatives through AI and a substantial population of mobile-first consumers have enabled China to facilitate rapid innovation in Insurtech.
India is the top Insurtech market in Asia, driven in part by the number uninsured people in India, as well as actions taken to reform digital health insurance corporations. In 2024, IRDAI required insurers to allow digital onboarding of users and made digital claims an official way to make a claim. The Ayushman Bharat Digital Mission continues to expand, improving technology-led health insurance penetration across rural as well as urban segments of the population.
In terms of the fastly growing Insurtech market in the Asia Pacific region, South Korea leads the way. The fast growth is empowered by strong government supports of the Insurtech model. The Financial Services Commission deregulated digital insurance to encourage innovation in 2022, allowing neoinsurers to emerge and usage-based auto products to move through the market, resulting in strong projections that gross written premiums will grow to 2027. Important was the 2019 introduction of a financial sandbox law, as was the MyData system that became law as a means of supporting digital finance.
Europe follows with strong regulatory build up, including the EU's Digital Operational Resilience Act (DORA) and the obligatory adoption of the eCall telematics system.
Germany leads in the European Insurtech field with a strong fintech ecosystem and state-supported digital policies. In 2024, BaFin approved sandbox expansions which increased the number of startup funding rounds for health and mobility insurance. Berlin continues to be a key point of interest with government funding available for startups aiming to enhance AI capabilities, specifically in underwriting and claims automation.
France has solidly grown from a relatively small base. France's state-supported digital reforms since 2021 have led to a gradual growth in the market. In late 2023, ACPR issued Insurtech-specific supervisory frameworks in addition to the government's commitment to health Insurtech via France 2030 investment. There has been a steady rise in fit-for-purpose telematics to coupled connected health with vehicle insurance and virtual e-health for mobile member engagement.
The UK's high innovation in Insurtech positions it well against Mainland Europe market participants. Initiatives from the FCA such as the regulatory sandbox and an Open Finance program have encouraged innovation. In 2024, HM Treasury pledged £54 million from the AI and fintech sectors to support Insurtech amongst other target sectors. London continues to be a premier market for Embedded and digital-first insurance business models.
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The Insurtech market competitive landscape is characterized by collaboration between startup and incumbent underwriters, and the "once removed" situation of public support ramping up rapid innovation. In 2024, Singapore's MAS initiated the "Project Guardian" project to explore tokenized insurance; South Africa's FSCA released guidelines for a new digital-only insurer license to enhance market access; Germany's Digital Strategy 2025 provided €3 billion for a combination of legislative and regulatory reforms to facilitate the uptake of AI, with insurance among the segments covered; and Japan's 2024 DX Strategy allows Insurtechs to engage with traditional insurers through public-private partnerships. These regulatory frameworks are enabling agile Insurtech firms to scale up quickly while incumbents accelerate their digital capabilities to retain market share and keep up with evolving compliance in a succession of digital insurance ecosystems.
Insurtech companies should focus utilizing blockchain technology to keep up with the decentralized finance trend. Blockchain technology ensures secure, tamper-proof records, streamlining the claims process and reducing disputes. Use of smart contracts in insurtech could also help open up new avenues of business for all market players in the future.
The rise of gig economy and increasing number of freelance workers around the world are projected to bolster the demand for microinsurance solutions and models in the future. Insurtech companies can leverage this key insurtech market trend to provide flexible policies that cover specific needs for short periods, such as travel, event, or gadget insurance and boost their revenue generation potential as well.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
Based on recent studies of global government-sponsored initiatives, expanding needs for expense optimization in insurance operations with requests to incorporate Artificial Intelligence (AI) claims and underwriting, and numerous industry sectors (especially health and automotive) are mandated to go through digital transformation, we expect this dynamic landscape to continue to drive Insurtech market growth through 2032. However, existing regulatory fragmentation and ongoing cybersecurity threats to secure and seamless data and technology implementation in the global marketplace will face challenges in some countries and regions. In favour of North America maintaining its Insurtech market share leadership includes conducive government-supported sandboxes, increasing requirements to implement telematic rules, and an established cloud infrastructure. By comparison, in Asia-Pacific, growing momentum from ongoing digital health reforms ongoing in multiple markets, demands of smart insurance and demand for mobile-first consumer engagement with trusts/parametrics are creating significant velocity of change in this region. Finally, we must also note that strategic trends with developing inclusions of blockchain, the thrust of embedded insurance models, and AI-supported personalization are expected to realize future platforms for growth.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 19.41 Billion |
| Market size value in 2033 | USD 876.06 Billion |
| Growth Rate | 52.7% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Insurtech Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Insurtech Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Insurtech Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Insurtech Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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