Artificial Intelligence (AI) for Insurance Market Report 2026

The artificial intelligence (ai) for insurance market size has grown exponentially in recent years. It will grow from $10.24 billion in 2025 to $13.94 billion in 2026 at a compound annual growth rate (CAGR) of 36.1%. The growth in the historic period can be attributed to rising insurance data volumes, increasing digital transformation initiatives, growing complexity of risk modeling, higher adoption of automation tools, expansion of online insurance distribution.

The artificial intelligence (ai) for insurance market size is expected to see exponential growth in the next few years. It will grow to $49.13 billion in 2030 at a compound annual growth rate (CAGR) of 37%. The growth in the forecast period can be attributed to increasing demand for real-time underwriting decisions, rising adoption of ai-powered customer engagement tools, growing focus on loss prevention analytics, expansion of usage-based insurance models, increasing regulatory acceptance of ai applications. Major trends in the forecast period include increasing adoption of ai-driven claims automation, rising use of predictive analytics for risk assessment, growing deployment of virtual assistants in customer service, expansion of AI-based fraud detection systems, enhanced focus on personalized insurance offerings.

The increasing investments in the insurance sector are poised to accelerate the growth of the artificial intelligence (AI) insurance market in the foreseeable future. These investments encompass allocations of funds and resources towards research and development, data infrastructure, technology development, and talent acquisition within the insurance domain. This strategic investment approach ensures comprehensive coverage and fosters the development of innovative solutions to cater to customer needs. The surge in investments is expected to drive the development and adoption of AI-powered solutions, as insurers increasingly recognize the transformative potential of AI. For example, in July 2023, Swiss Re, a Switzerland-based insurance company, reported an increase in investment rates from 6.2% in 2022 to 8.1% in 2023. Consequently, the escalating investments in the insurance sector are propelling the growth of the artificial intelligence (AI) for insurance market.

Key players in the artificial intelligence (AI) for insurance market are directing their efforts towards the creation of technologically advanced solutions tailored to address the intricacies of the insurance sector. One such innovation is InsuranceGPT, a custom-built generative pre-trained transformer (GPT) tool specifically designed for insurers. InsuranceGPT enhances decision-making capabilities for automated claims management while prioritizing privacy and data security. For instance, SimplifAI AS, a Norway-based artificial intelligence company, unveiled SimplifAI InsuranceGPT in June 2023. This specialized GPT tool streamlines decision-making processes for automated claims management, emphasizing privacy and data security. Noteworthy features include seamless integration into existing systems, a user-friendly no-code-necessary model for security, training on insurance data for accuracy, and enhanced communication between insurers and customers.

In January 2025, CCC Intelligent Solutions Inc., a US-based Software-as-a-Service company, acquired EvolutionIQ for $730 million. Through this acquisition, CCC aimed to enhance its AI-powered claims guidance capabilities, increase efficiency in managing complex disability and injury claims, and integrate intelligent summarization technology into its platform. EvolutionIQ Inc. is a US-based company that offers AI-powered guidance and intelligent summarization solutions for insurance claims.

Major companies operating in the artificial intelligence (ai) for insurance market are Amazon.com Inc., Google LLC, Microsoft Corporation, IBM Corporation, Oracle Corporation, SAP SE, Salesforce Inc., Baidu Inc., Infosys Limited, Wipro Products Limited, OpenText Corporation, SAS Institute Inc., Pegasystems Inc., Shift Technology, Vertafore, Inc., Applied Systems, Zego Inc., Acko General Insurance, Tractable Ltd, SimpleFinance, Insurify, Inc., Avaamo Inc., Slice Insurance Technologies, Quantemplate, Cape Analytics LLC.

North America was the largest region in the artificial intelligence (AI) for insurance market in 2025. The regions covered in the artificial intelligence (ai) for insurance market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the artificial intelligence (ai) for insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The artificial intelligence (AI) for insurance market includes revenues earned by entities by providing services such as customer interaction and support, claims processing automation, policy underwriting, and fraud detection and prevention. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The artificial intelligence (AI) for insurance market consists of sales of chatbots and virtual assistants, telematics devices, fraud detection tools, and robotic process automation. 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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