Insurtech Market Size - By Type, By Technology, By Distribution Channel, By Deployment Mode, Growth Forecast, 2025 - 2034

Insurtech Market Size

The global Insurtech market was valued at USD 5.3 billion in 2024 and is estimated to register a CAGR of 36% between 2025 and 2034.
 

Advanced technologies in Insurtech reshaped insurance industry through streamlining processes and boosting operational efficiency. Machine learning (ML) and artificial intelligence (AI) stand today as leading technologies driving this industrial revolution by allowing organizations to automate various tasks originally done by humans. Modern digital insurers, Lemonade and ZhongAn have changed claim settlement operations and client service through artificial intelligence-based chatbots which cover the entire scope of policy and claim tasks.
 

For instance, at WAIC2023, ZhongAn presented its strategic plan which detailed how the company would merge AI technology with AI-generated content (AIGC) for the insurance industry in June 2023. The Lingxi core system from the company brings AIGC capabilities to 19 insurance categories while improving underwriting and claims processing and customer service operations. The solution offers operational effectiveness while decreasing expenses while generating customized solutions. The company plans to create an insurance system that unites various stakeholders through data sharing to optimize processes across all business operations.
 

The Insurtech market has observed growth as consumers seek customized insurance products at affordable prices. Technology allows the digital collection of extensive data points through its capabilities. For instance, Lemonade collects 1,500 individual data points from each customer which enables insurers to develop personalized underwriting and pricing systems. Through data-driven analysis companies lower their risks and provide competitive prices that make customers more open to digital transactions. People in UK show caution about privacy but the continuing trend demonstrates that customers embrace personalized insurance when these services mean lower costs and better customer service standards.
 

The Insurtech sector maintained strong investment inflow exceeding 10 billion U.S. dollars annually in the past seven years as per Statista. The robust investment environment created a competitive setting where insurers are motivated to implement digital solutions and develop them further. The insurance sector is transitioning at a fast pace as traditional insurers follow cautious approaches that now require strong technological development. The upward trend in investments produces innovative approaches to underwriting and claim processing which builds a solid foundation for international expansion of modern insurance operations worldwide.
 

Insurtech Market Trends

• Several prominent InsurTech companies are showing commitment to big data platforms which help them boost the quality of risk evaluation and underwriting and their claims management activities. The traditional insurance methodology usually depend on history-based data grouped into wide risk profiles that results in pricing mistakes along with operational inefficiencies.
   
• For instance, in November 2024, ZhongAn introduced Data Cube through a partnership with Sinosafe Asset Insurance and Urtrust to improve vehicle insurance operations in China. This platform connects AI systems with advanced analytics to measure how drivers behave and their financial strength and system usage which leads to precise price calculations and detection of fraudulent activities. The initiative supports ZhongAn's strategic goal to use digital innovation for transforming the insurance industry.
   
• Insurers can use big data to study multiple types of recent and raw data like customer interactions with their products and social media usage and Internet-of-Things sensors together with vehicle tracking information instantaneously.
   
• Insurtech firms use big data platforms to simplify regulatory requirements as well as enhance predictive analytics for more advanced decision support. Insurance organizations need to follow regulatory compliance rules so big data systems help companies check transactions as well as detect unusual patterns to verify industry regulations.
   
• Predictive models create future market forecasts related to customer turnover and dangers which enable insurance companies to strategize before market changes occur.
   
• Insurtech companies that use big data with AI and machine learning technologies obtain market superiority through innovative customer-oriented solutions that transform the conventional insurance model leading to higher operational effectiveness and financial success.
   

Insurtech Market Analysis

Based on deployment mode, the Insurtech market is divided into on-premises and cloud-based. The on-premises segment held a market share of over 60% and is expected to cross USD 70 billion by 2034.  
 

• The on-premises deployment segment maintains its market leadership mostly because it delivers higher data security together with control and compliance. The financial sector together with healthcare and insurance businesses operate with highly sensitive business and customer data which demands robust security protocols. Companies benefit from on-premises deployments because they have complete data control which allows them to meet compliance requirements of GDPR, HIPAA and PCI-DSS.
   
• Maintenance of sensitive data protection through on-premises deployment helps organizations avoid both third-party security breaches and unauthorized data access because of its preferred data sovereignty features.
   
• Businesses that seek stable operations with existing IT resources along with staff expertise can achieve better long-term financial gains from on-premises deployment since this approach eliminates dependency on recurring cloud service charges and vendor entrapment.
   
• Furthermore, on-premises solutions offer better performance and customization, which is critical for enterprises with complex IT ecosystems. These deployments allow seamless integration with legacy systems, ensuring uninterrupted workflows without compatibility issues.
   
• Large organizations, particularly those with mission-critical applications, benefit from reduced latency and higher reliability, as data processing occurs locally rather than relying on external cloud servers.
   
• Additionally, on-premises solutions provide greater flexibility in tailoring software and security protocols to specific business needs, making them an attractive option for enterprises requiring high-performance computing and control over IT environments. While cloud adoption is rising, the demand for on-premises deployment remains strong among businesses prioritizing security, regulatory compliance, and operational efficiency.
   

Based on the distribution channel, the Insurtech market is divided into Direct-to-Consumer (D2C), brokers & agents and others. The brokers & agents segment dominated the market accounting for 62.7% in 2024.
 

• Brokers and agents dominate the market because they play a crucial role in guiding customers through complex insurance and financial products. Many insurance buyers, especially in commercial and high-value personal insurance segments, rely on brokers and agents for personalized advice, risk assessment, and policy customization. Unlike direct sales channels, brokers and agents provide a human touch, helping clients navigate policy terms, compare coverage options, and negotiate better rates with insurers.
   
• Their expertise is particularly valuable in specialized insurance lines such as cyber insurance, liability coverage, and high-net-worth individual policies, where one-size-fits-all solutions do not suffice. Additionally, brokers and agents build long-term relationships with clients, ensuring better customer retention and satisfaction compared to digital self-service platforms.
   
• Another key reason for their dominance is their ability to access multiple insurers, offering customers a wider range of options. Unlike direct insurers who sell only their own products, brokers and independent agents can compare policies from different providers to find the best fit for their clients. This flexibility makes them highly attractive to businesses and individuals seeking tailored solutions at competitive prices.
   
• Moreover, in emerging markets and industries with low digital penetration, brokers and agents serve as the primary distribution channel, ensuring that insurance products reach a broader customer base. Their strong industry networks and established credibility make them indispensable, reinforcing their continued dominance despite the growing adoption of digital insurance platforms.
   
• For instance, Lemonade teamed up with General Catalyst in July 2023 to launch Synthetic Agents which serves as a financial model to boost growth without using up capital reserves. The partnership between GC and Lemonade enables the financier to cover 80% of CAC expenses while receiving a synthetic commission of 16% from premium payments.
   
• Through this program, Lemonade can grow its business while maintaining ownership of its customers and improving its capital return. General Catalyst views this partnership as a key element to help Lemonade advance its technological development and business expansion.
   

Based on type, the Insurtech market is categorized into health insurance, life insurance, property & casualty (P&C) insurance, auto insurance, specialty insurance and reinsurance. The life insurance segment held a market share above 20% in 2024.
 

• The market recognizes life insurance as the prime segment because it serves as a vital security measure and offers lasting protection for assets. Life insurance remains the core financial product because people buy it to safeguard their families' financial future when they pass away thus serving all population groups.
   
• The life insurance segment remains dominant because people are becoming more aware of financial planning while their disposable income rises, and emerging economies experience population growth among their middle-class.
   
• Life insurance policies contain investment, and savings features such as whole life and endowment policies which attract customers who need both protection and wealth accumulation. The growth of life insurance is supported by governments and employers who use life insurance as an essential component of employee benefits packages.
   
• The sustained nature of life insurance represents a crucial factor explaining its dominance because it results in extended and constant premium payments with high renewal rates. Life insurance generates steady revenue streams which extend across time while other insurance types depend on specific events thus making it a more profitable segment for insurers.
   
• Customer life insurance access grew through digital channels alongside InsurTech innovations because these developments provided streamlined policy acquisition procedures for customers. The segment's dominance in the global insurance market becomes stronger because of rising retirement and pension-related life insurance product demand from aging populations in developed nations.
   

Based on technology, the Insurtech market is divided into artificial intelligence & machine learning, big data & analytics, blockchain, internet of things (IoT), telematics and cloud computing. The passenger vehicle segment held a market share above 70% in 2024.
 

• Big Data & Analytics functions as the leading technology in InsurTech markets because it provides essential power for risk evaluation and fraud identification as well as personalized customer experiences. Insurance companies need extensive structured and unstructured data to create informed decisions and establish premium rates and improve their underwriting operations.
   
• Insurance companies use big data to examine customer conduct combined with medical records of clients and their driving habits along with documentation of their financial operations for better risk assessment frameworks and premium system modeling. Insurers benefit from predictive analytics through their ability to identify fraud patterns in claims thus minimizing the number of financial losses. Real-time processing of data from social media and IoT devices together with multiple other sources allows insurers to make superior decisions and confirms the essential nature of big data and analytics in InsurTech operations.
   
• Insurers experience a substantial growth of available analytical data because customers increasingly use digital platforms alongside telematics technology and wearables in their insurance policies. Through analysis of large datasets insurers create custom insurance coverage which enables adjustable policy costs and adjustable recommendations that drive better customer interaction while keeping policyholders.
   
• Insurance organizations use analytics to meet regulatory reporting demands while performing risk management functions because data-driven compliance has become a mandatory requirement. Big data systems achieve cost savings through automation and operational efficiency because AI and machine learning work together. Digital transformation in the insurance industry continues to grow stronger because big data analytics functions as the fundamental organizational support for better market performance.
   

North America dominates the global insurtech market with a share of around 37% and U.S. leads the market in the region generating revenue of USD 1.2 billion in 2024.
 

• The InsurTech market leadership is held by the U.S. since the country possesses advanced insurance markets as well as strong technological capabilities and elevated digital transformation adoption rates. The insurance market of the country ranks among the biggest worldwide while maintaining an established regulatory structure that advances both innovation and market competition.
   
• The Insurance Information Institute, Inc. presented data indicating that in 2021 the U.S. Department of Labor reported that the insurance industry had 2.8 million workers in employ. 1.6 million workers labored at insurance companies with life and health insurers employing 911,400 workers and P/C insurers using 628,600 workers and reinsurers implementing a workforce of 26,900 people. 1.2 million people were employed by insurance agencies together with brokers and other connected insurance organizations.
   
• The U.S. insurance market along with InsurTech startups invest substantial funds into emerging technologies to strengthen risk analysis while optimizing claims handling and bettering user experience through AI and big data analytics, blockchain and IoT. InsurTech startups receive substantial financial support through leading private equity and venture capital investors active in the US which drives fast business growth with new product development.
   
• The country maintains an advantage because its customers have adopted a technology-focused approach to insurance by using digital solutions together with mobile applications and AI-powered chatbots to buy and handle claims for their policies. Major technology companies operate within the country to partner with insurers and develop next-generation insurance solutions including auto insurance based on telematics and AI-powered underwriting.
   
• Open insurance initiatives and digital compliance regulations enabled by the U.S. government facilitate InsurTech company growth while the nation leads globally in InsurTech market penetration through joint insurer-tech startup collaborations.
   

The insurtech market in Germany is expected to experience significant and promising growth from 2025 to 2034.
 

• The InsurTech market in Germany stands dominant among European countries because of its well-managed insurance sector and modern digital systems and the rising use of technology advancements. The insurance sector in the country operates at a high level of development because established insurance companies work together with InsurTech startups to improve operational efficiency and customer interactions.
   
• The implementation of artificial intelligence alongside big data analytics and blockchain technology and Internet of Things devices enables digital insurers to simplify their underwriting operations as well as claims processing and risk assessment functions. Digital insurance solutions gain trust from customers in Germany because of the nation's stringent data security laws combined with protective regulations including GDPR and BaFin regulations. The insurance market experiences growing demand for on-demand insurance and usage-based and parametric coverage because consumers want personalized flexible protection.
   
• The InsurTech growth in Germany receives additional support from its strong startup ecosystem and venture capital investments that concentrate in Berlin and Munich as innovation centers.
   
• The government implements digital transformation initiatives which motivate standard insurance companies to integrate cloud-based systems and AI-powered solutions. InsurTech firms operating in Germany now integrate ESG (Environmental Social Governance) principles into their insurance products because sustainability and green insurance have become major industry priorities.
   
• Auto insurance develops through telematics technology yet connected vehicles are driving the marketplace growth and health and life insurers depend more on AI-powered risk assessment frameworks to manage their operations. The rapid digital transformation enables Germany to maintain its essential role in developing European InsurTech trends of the future.

The Insurtech market in China is expected to experience significant and promising growth from 2025 to 2034.
 

• China stands as a leading force in global InsurTech markets because of its quick digital transformation together with government backing and technology-oriented population. The adoption of artificial intelligence together with big data analytics blockchain and IoT technology by China's insurance sector allows companies to deliver customized insurance offerings and execute automated claims processing and enhance their risk assessment operations.
   
• Chinese tech leaders including Alibaba and Tencent as well as Ping An Insurance have fundamentally transformed insurance markets through their web-based ecosystems and artificial intelligence underwriting capabilities and their embedded insurance offerings. The strong presence of mobile payment systems and e-commerce platforms drives InsurTech service adoption in China resulting in rapid market expansion worldwide.
   
• The Chinese InsurTech market experiences rapid growth through government-backed regulatory changes and increased investments while the government supports financial and insurance sector innovation. Usage-based and microinsurance models have emerged to serve large numbers of customers who need flexible and affordable insurance coverage especially in health and auto insurance sectors.
   
• Smart operations and customer engagement benefit from AI-powered chatbots alongside robo-advisors that use blockchain technology through smart contracts. InsurTech solutions are rapidly integrating with healthtech and telemedicine systems because of increasing customer interest in digital healthcare options. China maintains its position as a worldwide leader in InsurTech innovation and expansion through its massive population base and advanced technology adoption as well as its robust market investments.
   

Insurtech Market Share

Top 5 companies leading the Insurtech market in 2024 are Hippo Insurance, Root Insurance, Lemonade, Oscar Health and ZhongAn Insurance. Together, they hold around 30% market share in the market.
 

• Lemonade operates as a leading InsurTech company that uses AI to provide home, renters, pet, auto and life insurance services while focusing on automated processes and social initiatives. The company operates through artificial intelligence and behavioral economic principles to simplify claims processing which results in shorter processing times and reduced costs and improved user experiences.
   
• The company employs an immediate digital platform which transformed conventional insurance frameworks to gain technological customer base. The Synthetic Agents program together with the strategic partnerships Lemonade has established allows it to expand efficiently while keeping a solid financial position through its operations.
   
• Lemonade improves its customer appeal through its subscription model and Giveback program which redirects unclaimed premiums to policyholder-selected nonprofit organizations. The combination of AI underwriting together with automated chat support platforms positions the company as a leading InsurTech organization with maximum operational efficiency.
   
• Lemonade uses big data analysis together with predictive analytics to improve predictive pricing methods which enables better business profitability and policyholder retention rates. The company's entry into fresh insurance domains combined with its international market expansion makes it a leading force in InsurTech.
   
• Oscar Health transforms health insurance through technology-based healthcare plans which specifically serve individual customers and small business clients. The company uses AI-powered software and telehealth capabilities to manage policies and handle claims while delivering customized healthcare guidance to its customers. The company distinguishes itself as an insurance provider through its data-focused methodology which enhances cost reduction alongside member participation and separation from conventional health insurers. The company stands out because it provides digital healthcare options and virtual consultations which appeal strongly to people who need remote healthcare services.
   
• Through its unique insurance platforms Oscar Health introduces models dedicated to cost-effective healthcare combined with enhanced preventive services as well as complete transparency in coverage. Real-time health data analysis combined with remote surveillance allows members to obtain better knowledge for health management and minimizes unneeded medical costs. Through its strategic alliances with healthcare providers and tech companies the company has built stronger market dominance in the U.S. insurance sector. His vigorous brand awareness combined with an online-focused platform and systematic technology advancements places Oscar Insurance as an elite InsurTech leader.
   
• China operates digital-only insurance company ZhongAn Insurance which creates tailored on-demand coverage using AI together with big data and blockchain technology. The company operates as China's initial digital insurance provider by serving millions of customers through its e-commerce and fintech and travel platform alliances which integrate insurance services into regular digital transactions.
   
• The company's all-digital platform which requires cloud-based operations lets customers receive instant insurance policies at reduced operational expenses while streamlining the claims processing experience. The digital economy expansion in China enables ZhongAn to deliver insurance products across health, travel, consumer electronics and auto sectors.
   
• ZhongAn’s AI-driven pricing models and risk assessment tools have redefined insurance distribution, making it scalable and cost-effective. Its blockchain applications in claims processing and fraud detection ensure greater transparency and security, building customer trust.
   
• By leveraging machine learning and predictive analytics, the company refines underwriting precision, minimizing risk and maximizing efficiency. With its strong financial backing, strategic alliances with Ant Group and Tencent, and continuous tech advancements, ZhongAn remains a dominant force in the global InsurTech market.
   

Insurtech Market Companies

Major players operating in the Insurtech industry include:

• BIMA
• Bolttech
• Bright Health Group
• Hippo Insurance
• Lemonade
• Metromile
• Next Insurance
• Oscar Health
• Root Insurance
• ZhongAn Insurance
   
• The InsurTech market is highly competitive, driven by technological innovation, customer-centric solutions, and strategic partnerships. Established players like Lemonade, Oscar Health, and ZhongAn Insurance dominate the market with AI-driven underwriting, big data analytics, and seamless digital platforms that enhance efficiency and customer experience.
   
• Traditional insurers are also entering the InsurTech space, either by developing their own digital solutions or through acquisitions and collaborations with startups. This has created a dynamic ecosystem where both startups and legacy insurers compete to offer cost-effective, personalized insurance solutions.
   
• The competitive landscape is further shaped by venture capital investments, regulatory developments, and market expansions. Companies that leverage blockchain, IoT, telematics, and cloud computing gain an edge by improving fraud detection, real-time monitoring, and automated claims processing. Regional players are also emerging as strong contenders, particularly in China, the U.S., and Europe, where digital adoption and regulatory support for InsurTech are high. As competition intensifies, firms are focusing on AI-powered risk assessment, embedded insurance models, and subscription-based offerings to differentiate themselves in a rapidly evolving market.
   

Insurtech Industry News

• In November 2024, the joint venture between ZhongAn and Sinosafe Asset Insurance and Urtrust launched Data Cube to improve China's vehicle insurance sector. This platform uses artificial intelligence and advanced analytical tools to evaluate driver behavior and creditworthiness and user actions while performing accurate product pricing and fraud discovery.
   
• Through Alibaba's data ecosystem ZhongAn develops fresh insurance approaches such as those grounded in user behavior and predictive usage patterns. The 'four-in-one' auto service ecosystem of the company connects online operations to offline activities for car retail and finance alongside transport and connected cars. The digital transformation strategy of the insurance industry matches ZhongAn's initiative of implementing digital innovation across its business operations.
   
• In July 2023, Lemonade teamed up with General Catalyst to launch Synthetic Agents which serves as a financial model to boost growth without using up capital reserves. The partnership between GC and Lemonade enables the financier to cover 80% of CAC expenses while receiving a synthetic commission of 16% from premium payments. Through this program Lemonade can grow its business while keeping ownership of its customers and improving its capital return. General Catalyst views this partnership as a key element to help Lemonade advance its technological development and business expansion. Lemonade maintains a positive outlook for its financial performance throughout 2023.
   
• In June 2023, ZhongAn presented its insurance sector AI and AI-generated content (AIGC) integration plans during WAIC2023. The Lingxi core system from the company operates across 19 insurance categories to transform underwriting and claims processing and customer service operations through AIGC. The company works to enhance their operational performance while cutting costs while producing tailored solutions. The company's leaders focused on accountable AI development through measures which ensure the industry's security and fairness along with regulatory compliance. The company plans to create a data-driven insurance network which will benefit all participants through this strategic roadmap.
   
• In February 2023, BNP Paribas Cardif and Lemonade launched a fully digital renters insurance product in France to serve tech-savvy young consumers. The policy includes basic personal property and liability protection, but customers can choose additional coverage options for theft protection and glass damage and valuable item insurance. By establishing the partnership BNP Paribas Cardif executes its strategy to create better customer experiences through digital advancement. Lemonade gains from BNP Paribas Cardif's established position in the French market and both companies function as joint insurers. The joint venture works to create easy insurance accessibility through an automated web-based subscription system and claims management process.
   
• In January 2021, ZhongAn International has partnered with Sompo Japan to provide a cloud-based, end-to-end insurance service aimed at accelerating digital transformation. This collaboration will help Sompo enhance policy processing efficiency and speed up new product launches. Sompo executives expressed confidence in the partnership, emphasizing its role in strengthening their market position in Japan. ZhongAn International sees this as an opportunity to expand in Japan while leveraging its expertise in digital insurance. Both companies aim to drive innovation and improve customer experiences through technology-driven solutions.
   

The Insurtech market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($Bn) from 2021 to 2034, for the following segments:

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Market, By Type

• Health insurance
• Life insurance
• Property & casualty (P&C) insurance
• Auto insurance
• Specialty insurance
• Reinsurance

Market, By Technology

• Artificial Intelligence (AI) & Machine Learning (ML)
• Big Data & Analytics
• Blockchain
• Internet of Things (IoT)
• Telematics
• Cloud Computing

Market, By Deployment Mode

• On-Premises
• Cloud-Based

Market, By Distribution Channel

• Direct-to-Consumer (D2C)
• Brokers & Agents
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • South Africa
  • Saudi Arabia