North America Insurtech Market Outlook, 2030

The North American insurtech market is experiencing rapid transformation, driven by evolving consumer expectations, technological innovation, and a supportive investment environment. The demand for personalized, mobile-first, and on-demand insurance services is expanding, especially among Millennials and Gen Z consumers who prioritize convenience, transparency, and speed. The integration of AI, machine learning, and big data analytics has transformed the business by allowing for more tailored policies, precise risk projections, and improved claims procedures.

For instance, telematics in auto insurance enables real-time surveillance of driving behavior, resulting in more personalized pricing, whereas AI-powered solutions aid in speedier property risk evaluations and claims processing. These technology advancements improve operational efficiency, increase client satisfaction, and make the P&C insurance market more competitive, resulting in growth. Marketing in the region is also evolving, as companies use data-driven digital channels like Google Ads, social media, influencer marketing, and personalized content to reach and retain customers. Many insurtech firms also rely on AI-powered recommendation systems and behavioral analytics to tailor their promotions and upsell strategies. The U.S.

insurance market is regulated primarily at the state level, leading to a patchwork of rules and compliance obligations, such as the California Consumer Privacy Act (CCPA) and New York’s cybersecurity regulations. However, regulatory sandboxes and innovation hubs are helping startups experiment with novel insurance models like parametric and peer-to-peer products. Canada, with more harmonized regulations and supportive policy measures, is seeing even faster insurtech growth than the U.S. Nevertheless, insurtechs still face challenges such as integrating with legacy insurance infrastructure, ensuring cybersecurity, and maintaining customer trust in a highly data-sensitive sector.

According to the research report "North America InsurTech Market Outlook, 2030," the North America InsurTech market is anticipated to grow at more than 39.98% CAGR from 2025 to 2030. The increasing demand for speed, transparency, personalization, and seamless digital experiences has led to widespread adoption of technologies like artificial intelligence (AI), machine learning, big data analytics, Internet of Things (IoT), blockchain, and cloud computing. These technologies are enabling faster underwriting, automated claims processing, predictive risk modeling, and dynamic pricing - all of which are enhancing customer satisfaction and operational efficiency.

For example, telematics-based auto insurance and pay-as-you-go policies are becoming common, especially in urban areas with high smartphone penetration and digital connectivity. Interestingly, around 90% of North American adults are internet users, and over 80% live in urban centers, making it a fertile ground for digital-first insurtech offerings. North America, particularly the U.S., accounts for a significant share of global insurtech funding, with venture investments in the region totaling billions of dollars annually. Cities like San Francisco, New York, Toronto, and Boston have emerged as hubs for insurtech innovation due to their access to talent, capital, and regulatory support. For instance, the U.S.

states like Arizona and Utah have established insurance regulatory sandboxes, allowing startups to test novel products under relaxed regulatory scrutiny. Insurtechs are leveraging social media platforms, influencer collaborations, AI-driven recommendation engines, and personalized content marketing to engage tech-savvy consumers and build brand loyalty in a competitive landscape. Notably, climate change has triggered demand for parametric insurance products that offer instant payouts based on data triggers like weather patterns. Similarly, the rise in cyber threats has expanded the market for customizable cyber insurance.

Market Drivers

• High Digital Adoption and Advanced Infrastructure: North America, particularly the United States and Canada, boasts one of the highest internet penetration rates globally and a mature digital infrastructure. This has become a major driver for the InsurTech industry, as insurance companies are able to integrate cutting-edge technologies like AI, big data, IoT, and blockchain with relative ease. Consumers are also increasingly tech-savvy, preferring online platforms for policy comparison, purchase, and claims processing. This strong digital foundation has fostered a highly conducive environment for InsurTech startups to develop personalized insurance offerings, use telematics for auto insurance, and enable real-time underwriting, all of which are reshaping customer experiences.
• Regulatory Support and Sandbox Initiatives: North American regulators, especially in U.S. states like Arizona and in Canada’s Ontario region, have launched InsurTech-friendly regulatory sandboxes that allow startups to test innovative products in controlled environments. These initiatives help streamline compliance for new players and promote healthy competition. Moreover, regulatory bodies like the NAIC (National Association of Insurance Commissioners) are engaging with digital-first insurers to update outdated laws, thereby encouraging more investment and innovation in the sector. This regulatory openness is a major enabler of growth, making it easier for InsurTech companies to experiment and scale.

Market Challenges

• Data Privacy and Cybersecurity Concerns: One of the most pressing challenges in the North American InsurTech market is managing vast amounts of customer data securely. As InsurTech companies rely heavily on real-time analytics, IoT data, and cloud platforms, they are increasingly exposed to cyber threats. Breaches can compromise sensitive personal and financial information, leading to loss of consumer trust and potential legal ramifications under data protection laws like the California Consumer Privacy Act (CCPA) or Canada’s PIPEDA. These concerns make robust cybersecurity systems a necessity, often adding significant compliance and operational costs for InsurTech providers.
• Legacy System Integration in Traditional Insurers: Despite high digital readiness, many traditional North American insurance companies still operate on outdated legacy systems that are not compatible with modern InsurTech solutions. This makes digital transformation a slow and expensive process. The challenge is especially critical when integrating automation, AI-driven underwriting, or real-time claims processing platforms. For InsurTech firms aiming to partner with or serve these traditional insurers, navigating legacy IT environments becomes a major hurdle, limiting the pace at which innovation can be adopted across the board.

Market Trends

• Rise of Embedded Insurance: Embedded insurance where coverage is seamlessly integrated into the purchase of products or services (e.g., travel insurance with flight tickets or gadget insurance at checkout) - is becoming a major trend in North America. Tech giants, e-commerce platforms, and fintech startups are collaborating with InsurTech providers to offer contextual insurance solutions, making policies more accessible and relevant to consumers. This approach is driving a shift from reactive insurance buying to proactive, experience-led insurance consumption.
• AI-Powered Claims and Underwriting: Artificial Intelligence is increasingly being used to automate claims assessment, detect fraud, and streamline underwriting. In North America, insurers are using AI to analyze customer behavior, vehicle telematics, or health data to assess risk and offer dynamic pricing. For instance, auto insurers use AI algorithms to process dashcam footage for claims or assess risk based on driving patterns. This trend not only boosts efficiency and reduces operational costs but also enhances personalization, resulting in better customer satisfaction.

Business insurtech is moderately growing in North America due to increasing digital transformation among small and medium enterprises (SMEs) and the growing need for tailored, tech-driven risk management solutions.

The moderate growth of business insurtech in the North American insurtech industry is primarily driven by the evolving needs of small and medium enterprises (SMEs), which form the backbone of the regional economy. As digitalization accelerates across industries, these businesses are increasingly adopting advanced technologies, including AI, big data, and cloud-based solutions, to streamline operations, enhance customer experiences, and manage risk more effectively. However, traditional insurance products often lack the flexibility and responsiveness required to address the diverse, fast-changing needs of modern businesses.

This gap has created fertile ground for business-focused insurtech startups and platforms that deliver agile, data-driven, and customized coverage options. Insurtech solutions enable businesses to purchase, manage, and update policies in real-time, offering unprecedented convenience and control. Moreover, many insurtech firms use predictive analytics and real-time risk assessment tools to offer dynamic pricing and personalized underwriting, helping SMEs to avoid overpaying for unnecessary coverage or being underinsured.

In addition to cost-efficiency, compliance with increasingly complex regulatory environments especially in sectors such as healthcare, fintech, and logistics is another reason why North American businesses are turning to digital insurers for tailored coverage and support. The emergence of usage-based commercial insurance and embedded insurance services also reflects a deeper integration of insurtech into business ecosystems, where protection is bundled directly into digital platforms like e-commerce or SaaS products.

Claims management is the largest application type in the North America insurtech industry because it offers immediate efficiency, cost reduction, and customer satisfaction improvements for insurers through automation.

Claims management has emerged as the largest application type in the North American insurtech industry due to the significant operational and customer service advantages it brings to insurers and policyholders alike. Traditionally, the claims process has been a major bottleneck in the insurance sector, often criticized for being slow, complex, and prone to errors or delays, which directly impacts customer satisfaction and retention. With the rise of insurtech, claims management has become a primary focus for digital transformation, allowing insurers to automate large portions of the workflow, reduce fraud, and enhance transparency.

North America, being home to some of the most mature and highly competitive insurance markets, has seen early and aggressive adoption of AI, machine learning, and robotic process automation (RPA) in this area. These technologies have enabled real-time claim intakes, digital document verification, and predictive analytics that help in quick, data-backed settlement decisions. Furthermore, mobile apps and self-service platforms now allow a policy holder to submit and track claims seamlessly, which has revolutionized the customer experience.

The shift from paper-based processes to digital-first platforms has also significantly cut administrative costs, helping insurers operate more profitably in a landscape where margins are tight and competition is fierce. Additionally, insurtech platforms that specialize in claims management often incorporate fraud detection algorithms that flag suspicious claims early in the process, reducing the financial drain of fraudulent activities. North American insurers are under increasing pressure to deliver fast, personalized service, especially in the post-pandemic era where digital expectations have soared.

Claims management applications address this demand more directly than other segments like underwriting or policy administration, making them a logical priority for investment. Regulatory encouragement for transparency and fair treatment of customers has further accelerated adoption, as automated claims processing reduces the risk of bias or oversight.

Blockchain technology is moderately growing in the North America insurtech industry due to its potential for enhancing transparency, security, and fraud prevention, despite challenges in scalability, integration, and regulatory uncertainty.

Blockchain technology is witnessing moderate growth in the North America insurtech industry because while its benefits such as enhanced transparency, immutable records, fraud mitigation, and improved data sharing are well recognized, practical adoption is still constrained by technical, operational, and regulatory barriers. In an industry where trust, accuracy, and secure data exchange are critical, blockchain offers transformative possibilities, particularly in areas like claims verification, policy issuance, identity management, and reinsurance.

Its decentralized nature ensures that all parties in the insurance value chain from insurers and reinsurers to policyholders and auditors can access a single, tamper-proof source of truth, significantly reducing disputes, errors, and fraud. For example, smart contracts can automatically trigger claim payments when predefined conditions are met, thereby streamlining settlements and minimizing human intervention. In North America, which is home to several blockchain innovation hubs and leading tech startups, there is substantial investment and experimentation in integrating blockchain into insurtech platforms. However, despite this interest, widespread adoption remains moderate.

One of the key reasons is the complexity of integrating blockchain with existing legacy systems, which dominate the infrastructure of most traditional insurers. These systems are not designed to accommodate decentralized architectures, making migration or integration both costly and time-consuming. Additionally, blockchain’s scalability and performance issues especially in handling high volumes of transactions quickly pose challenges for its use in large-scale insurance operations. Regulatory uncertainty also plays a major role in the cautious pace of adoption. Insurance is a heavily regulated industry in North America, and the decentralized, cross-border nature of blockchain raises concerns about compliance, data sovereignty, and consumer protection.

Managed services are moderately growing in the North America insurtech industry due to the rising demand for cost-effective, scalable IT operations and support, despite insurers' cautious approach to outsourcing critical functions.

The moderate growth of managed services in the North American insurtech industry stems from a growing recognition among insurers of the need to streamline operations, reduce infrastructure costs, and access specialized technological expertise - especially in a rapidly digitalizing environment. Managed services providers (MSPs) offer a range of outsourced capabilities, including cloud management, cybersecurity, data analytics, IT infrastructure, and regulatory compliance support, enabling insurance companies to focus more on core competencies such as underwriting, customer engagement, and product innovation.

For many mid-sized insurers and insurtech startups in North America, managing complex IT systems in-house is both costly and resource-intensive, particularly as technologies like artificial intelligence, blockchain, and big data analytics become essential to stay competitive. Through managed services, these companies can scale their digital operations without the burden of maintaining large internal IT teams or making heavy capital investments. Additionally, with rising concerns over cybersecurity and data privacy, MSPs bring advanced security frameworks and round-the-clock monitoring that many insurers cannot afford to implement internally.

However, despite these advantages, growth remains moderate rather than explosive due to several limiting factors. Larger insurance carriers in North America are often hesitant to outsource mission-critical systems due to concerns about data control, compliance risks, vendor lock-in, and service quality. The insurance industry operates under strict regulations, and handing off operations to third-party vendors introduces complexities related to regulatory oversight and accountability. Moreover, insurers with deeply entrenched legacy systems often struggle with integrating managed services into their existing IT environments, leading to delays or resistance to adoption. Many organizations are also navigating hybrid models, where they selectively outsource non-core functions while keeping strategic operations in-house.

Insurance companies are the leading end-user type in the North America insurtech industry because they are the primary drivers of digital transformation, seeking to modernize legacy systems, improve customer experience.

Insurance companies dominate as the leading end-user segment in the North America insurtech industry because they are at the forefront of adopting technological innovations to stay relevant, agile, and profitable in a rapidly changing environment. With intensifying competition from agile insurtech startups, evolving customer expectations, and increasing regulatory complexity, traditional insurers are under immense pressure to digitize their operations. This has led to significant investment in insurtech solutions across key functions such as claims processing, underwriting, customer engagement, fraud detection, and policy management.

North America, especially the U.S., is home to some of the world’s largest and most mature insurance markets, which means the scale and complexity of operations demand sophisticated technological infrastructure. Insurtech provides these companies with tools to automate routine tasks, enhance data accuracy, speed up service delivery, and create hyper-personalized insurance products. For instance, artificial intelligence and machine learning help insurers analyze customer behavior and risk profiles more precisely, while cloud computing enables seamless digital policy issuance and real-time customer support.

Moreover, technologies like telematics and IoT devices have become essential for auto and health insurance providers, allowing for usage-based insurance models and proactive risk management. Insurance companies also benefit from blockchain applications for secure data sharing and fraud prevention, further strengthening their interest in insurtech adoption.

While other end users like brokers, third-party administrators, or individual insureds do engage with insurtech platforms, it is the insurance companies that are making the largest financial commitments and strategic partnerships to integrate these technologies into their core systems. The trend is further supported by a surge in mergers, acquisitions, and collaborations between traditional insurers and tech-driven startups, reflecting the industry’s shift toward a hybrid insurance model that combines legacy expertise with digital agility.

The USA is leading the North America insurtech industry due to its mature insurance market, strong venture capital ecosystem, and widespread adoption of advanced digital technologies.

The United States dominates the North American insurtech industry largely because of its well-established and mature insurance sector, which provides a solid foundation for technological disruption and innovation. As one of the largest insurance markets globally, the U.S. presents a vast customer base with diverse needs across life, health, auto, property, and business insurance segments. This complexity and scale create a continuous demand for innovative solutions to improve efficiency, enhance customer experience, reduce costs, and enable more accurate risk assessment.

American consumers have shown a growing willingness to engage with digital platforms for insurance services, which has fueled the adoption of technologies like AI, machine learning, blockchain, and big data analytics. These tools are increasingly used to streamline underwriting, personalize policies, automate claims processing, and detect fraud, making the insurance process faster, more transparent, and customer-friendly. Furthermore, the U.S. has a dynamic startup culture supported by a strong venture capital environment. Insurtech startups in the country have attracted billions of dollars in funding over the past decade, with cities like San Francisco, New York, and Boston serving as hubs for innovation.

These startups are not only reinventing traditional insurance models but also collaborating with legacy insurers to drive digital transformation from within the industry. The favorable investment landscape accelerates the scaling of novel solutions like peer-to-peer insurance, on-demand coverage, and embedded insurance offerings through e-commerce and fintech platforms. Additionally, the U.S. benefits from a large pool of technology talent and access to cutting-edge research, further advancing the development and deployment of insurtech solutions.

Considered in this report

• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report

• Insurtech Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type

• Auto
• Business
• Health
• Home
• Specialty
• Travel
• Others

By Service

• Consulting
• Support & Maintenance
• Managed Services

By End-User

• Insurance Companies
• Brokers and Agents
• Third-Party Administrators
• Insureds

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to this industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.