Insurtech Market Report 2026

The insurtech market size has grown exponentially in recent years. It will grow from $21.96 billion in 2025 to $30.24 billion in 2026 at a compound annual growth rate (CAGR) of 37.7%. The growth in the historic period can be attributed to growth in digital financial services adoption, rising consumer demand for online insurance, expansion of mobile payment ecosystems, increased venture funding in insurtech startups, growing acceptance of automated insurance processes.

The insurtech market size is expected to see exponential growth in the next few years. It will grow to $105 billion in 2030 at a compound annual growth rate (CAGR) of 36.5%. The growth in the forecast period can be attributed to increasing adoption of blockchain-enabled insurance platforms, rising demand for real-time policy issuance, expansion of embedded insurance across industries, growing focus on fraud detection automation, increasing integration of insurtech with traditional insurers. Major trends in the forecast period include increasing adoption of ai-driven underwriting platforms, rising use of data analytics for personalized policies, growing deployment of cloud-native insurtech solutions, expansion of embedded insurance models, enhanced focus on customer experience automation.

The rise in insurance claims is anticipated to propel the growth of the insurtech market in the coming years. Insurtech solutions are increasingly employed to efficiently process claims, assess risk, handle contracts, and underwrite policies. The surge in hospitalization cases during the COVID-19 pandemic has contributed to an uptick in insurance claims. For example, in April 2024, a report from LV=, the largest personal lines insurer in the UK, revealed that in 2023, the company paid out $175.16 million (£135 million) in individual protection claims, reflecting a 6% increase compared to 2022. Thus, the growing number of insurance claims is expected to drive the expansion of the insurtech market.

Major companies in the insurtech market are increasingly focusing on developing innovative solutions like AI-powered insurance platforms to enhance customer experience. These platforms are digital systems that leverage artificial intelligence technologies to automate and optimize various insurance processes, including underwriting, claims management, and customer service, thereby improving efficiency and decision-making. For example, in June 2024, Sapiens International Corporation, an Israel-based software company, launched its Next-Gen Intelligent Insurance Platform. This platform integrates AI, machine learning, and cloud-native technologies to streamline insurance processes and enhance data-driven decision-making. It allows insurers to innovate rapidly, boost operational efficiency, and deliver superior customer experiences through a comprehensive ecosystem.

In March 2023, Vista Equity Partners, a U.S.-based private equity firm, acquired Duck Creek Technologies for an undisclosed amount. This acquisition aims to enhance Duck Creek's capabilities in delivering cloud-based software solutions for the property and casualty insurance industry, driving digital transformation and innovation within the insurtech market. Vista plans to leverage its resources and expertise to support Duck Creek's growth strategy, improve operational efficiencies, and expand its market reach in response to the rising demand for advanced insurance technology solutions. Duck Creek Technologies specializes in providing cloud-based software solutions for the property and casualty insurance sector.

Major companies operating in the insurtech market are Majesco, Shift Technology, Earnix, Simplesurance, Cytora, Planck Resolution LTD, Bdeo, Quantemplate, Oscar Health, Lemonade, Hippo Insurance, Root Insurance, Metromile, Next Insurance, Coalition, Clearcover, Wefox, Tractable, Sproutt, Zego, Alan, Kin Insurance, Policygenius, CoverGenius.

North America was the largest region in the insurtech service market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the insurtech market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the insurtech market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The insurtech market includes revenues earned by entities by providing solutions that integrate the traditional insurance industry with modern technologies. The term insurtech refers to applying technological innovations to extract cost and efficiency from the current insurance industry model. Insurtech intends to collect information from a variety of sources, including automotive GPS tracking and activity trackers on wristwatches. The information gathered can be utilized to create more precisely defined risk groups, allowing for more competitive pricing of products. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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