Insurtech Market Overview, 2025-30

Insurtech is becoming increasingly prominent because of the swiftly evolving global insurance environment which has led to a surge in demand for digital-first insurance solutions such as on-demand, embedded, and usage-based insurance. Consumers, especially millennials and Gen Z, now expect flexible coverage options that can be accessed anytime and tailored to their individual needs. For instance, AI algorithms are capable of examining data from multiple sources in vast amounts and allow insurers to identify patterns and evaluate risk with greater accuracy. According to a survey conducted by EIS Group, a software company, 59% of the insurance companies surveyed increased their investment in digital infrastructure in 2021.

Numerous insurance companies are reconsidering their long-term strategies and short-term needs as the COVID-19 and its impacts have accelerated the implementation of online platforms and new mobile applications to meet consumer needs. Several insurance companies are entering into partnerships with digital solution providers to enhance their offerings. For instance, in December 2021, Duck Creek Technologies, a core system provider for Property and Casualty (P&C) insurers, announced that SECURA Insurance, a P&C insurance carrier, selected Duck Creek Rating, Claims, Policy, and Insights to streamline its P&C business.

Benefits offered by blockchain technology, such as cost savings, faster payments, and fraud mitigation, are driving its demand among insurance companies worldwide. Blockchain technology is used in insurance companies for applications such as Know Your Customer (KYC), Anti-money Laundering (AML) procedures, claim handling, and creating peer-to-peer models.

In March 2024, CNB Bank & Trust (CIBC) and Insuritas partnered to launch integrated, full-service insurance offerings. Insuritas announced that CIBC has selected it to deploy its fully functional digital insurance agency solution. BUNDLE is Insuritas's full-featured insurance agency platform, integrated into the CIBC ecosystem and designed to provide a complete solution for CIBC’s retail and commercial clients.

According to the research report, "Global InsurTech Market Overview, 2030," the Global InsurTech market was valued at more than USD 12.83 Billion in 2024, with the CAGR of 41.30% from 2025-2030. Insurtech is playing a vital role in addressing emerging global risks such as climate change, pandemics, and cyber threats. For example, parametric insurance where payouts are automatically triggered by predefined events like floods or earthquakes is gaining traction in vulnerable regions due to its speed and transparency. For instance, IoT-based telematics have fueled usage-based insurance policies, particularly in the vehicle insurance industry, where a significant number of coverages are expected to be usage-based by 2025.

In 2024, Finsall, an insurtech startup, raised ₹15 crore in a bridge funding round led by Unicorn India Ventures and Seafund. The funds will be employed to create a non-bank financial company, enhance digital interfaces, and expand partnerships with insurers, intermediaries, and lenders. Additionally, other European countries beyond the major financial centers are drawing attention from investors and startups, capitalizing on regulatory reforms and an increasing appetite for innovation in insurance services. This expansion is fostering greater global participation and collaboration, enabling the deployment of tailored insurtech solutions to address region-specific challenges.

Consumers are increasingly demanding alternatives to conventional premium determination methods, seeking more transparent and fair systems that reward good driving behavior rather than focusing solely on punitive measures for violations. This shift in consumer preference is pushing InsurTech companies to develop sophisticated AI and ML algorithms for more accurate risk assessment and fair premium calculations. Moreover, strategic collaborations between investors and Insurtech firms are fueling innovation and investment in this sector. However, the high cost of investment remains a challenge for new entrants, requiring a substantial financial commitment to develop and scale their technologies.

Market Drivers

• Accelerating Digital Transformation Across the Insurance Industry: The global insurance sector is undergoing rapid digital transformation, driven by the need for operational efficiency, cost reduction, and enhanced customer experiences. InsurTech companies are leveraging advanced technologies such as artificial intelligence (AI), blockchain, big data analytics, and cloud computing to modernize traditional insurance processes. Digital tools are enabling real-time underwriting, automated claims processing, and personalized policy recommendations. Insurance companies, facing increasing pressure to innovate and remain competitive, are either partnering with or investing in InsurTech firms to improve speed, accuracy, and scalability. This transformation is particularly evident post-COVID-19, which acted as a catalyst for digital adoption across all stages of the insurance value chain.
• Rising Demand for Personalized and On-Demand Insurance Products: Today’s consumers, especially Millennials and Gen Z, are demanding more flexible, personalized, and accessible insurance services. This shift is reshaping how insurance is bought and consumed globally. Customers now expect policies that are tailored to their lifestyle - whether it’s pay-per-mile car insurance, short-term travel coverage, or gig worker health plans. InsurTech firms are capitalizing on this by using customer data and behavioral analytics to offer real-time pricing and dynamic products. The global push toward customer-centricity is driving innovation in policy design, risk assessment, and distribution channels, ultimately contributing to greater engagement and higher insurance penetration in both developed and emerging markets.

Market Challenges

• Data Security and Privacy Regulations: With the increasing use of data-intensive technologies, the InsurTech sector is facing growing scrutiny around data privacy and cybersecurity. Handling sensitive personal, financial, and health-related information makes InsurTech firms vulnerable to data breaches and cyberattacks. Moreover, navigating diverse data protection laws like the GDPR in Europe, HIPAA in the U.S., and similar frameworks in Asia adds complexity for global operations. Compliance with these regulations often requires significant investment in secure infrastructure and legal expertise. Failure to adequately protect consumer data can result in reputational damage, legal penalties, and loss of customer trust posing a serious barrier to growth and scalability.
• Integration with Legacy Systems and Resistance to Change: Many traditional insurance companies still operate on outdated, siloed IT systems that are not compatible with modern InsurTech solutions. Integrating advanced technologies into these legacy environments is both costly and time-consuming. Moreover, organizational resistance to change driven by entrenched processes, lack of digital skills, and fear of job displacement slows innovation. This challenge is particularly pronounced in large insurers operating across multiple regions, where digital transformation efforts must be synchronized across various regulatory, cultural, and technological contexts.

Market Trends

• Embedded Insurance and Ecosystem Partnerships: A major global trend is the rise of embedded insurance where coverage is seamlessly integrated into the sale of another product or service. From booking travel with automatic trip cancellation insurance to buying electronics with built-in theft protection, embedded insurance is becoming the new normal. InsurTech firms are forming ecosystem partnerships with retailers, e-commerce platforms, banks, and mobility apps to offer these bundled services. This model reduces friction in the insurance purchasing process, improves accessibility, and opens new distribution channels, especially in regions with historically low insurance uptake.
• AI-Driven Underwriting and Claims Automation: Artificial intelligence and machine learning are playing an increasingly critical role in transforming underwriting and claims management across the global InsurTech industry. These technologies enable real-time risk assessment, automated fraud detection, and faster decision-making, which significantly improves operational efficiency. InsurTech platforms use AI to process images from accident scenes, assess health risks from wearable data, or predict customer behavior for retention strategies. This trend is enabling insurers to provide more accurate pricing, reduce turnaround times, and enhance the customer experience, leading to improved trust and higher policyholder satisfaction across markets.

The health insurtech segment is the fastest-growing in the global insurtech industry due to increasing demand for personalized, accessible, and tech-enabled healthcare insurance solutions driven by rising healthcare costs and consumer expectations for digital services.

Traditional health insurance has long been plagued by high costs, complex paperwork, and lack of personalization. In contrast, health insurtech companies are leveraging cutting-edge technologies such as artificial intelligence (AI), blockchain, machine learning, big data analytics, and Internet of Things (IoT) to transform how health insurance is delivered, purchased, and managed. A key driver behind this surge is the growing global healthcare expenditure, which continues to burden individuals and governments alike, creating a pressing need for cost optimization and transparency. Digital platforms now allow consumers to compare, purchase, and manage policies in real-time, offering greater accessibility and convenience.

Furthermore, the COVID-19 pandemic accelerated the digital health movement, increasing public awareness around health protection and insurance coverage while forcing traditional insurers to pivot toward digital-first models. Startups in the health insurtech space are offering personalized plans based on user data, fitness trackers, and wearables, which promote preventive care and behavioral wellness, aligning both insurer and consumer interests. Additionally, embedded insurance models where insurance is integrated into healthcare services or digital health apps are reshaping consumer experiences, providing coverage at the point of care.

Governments and regulators are also fostering this growth by gradually updating policies to support digital transformation and improve insurance penetration, especially in underinsured markets. Insurtech platforms are also empowering smaller providers, brokers, and third-party administrators with scalable tools and cloud-based services, enabling them to serve larger customer bases with improved accuracy and speed. Interestingly, health insurtech is also playing a vital role in improving inclusivity by offering microinsurance or customized plans for low-income or remote populations, especially in emerging economies where access to healthcare is limited.

Customer Experience Management (CEM) is the fastest-growing application type in the global insurtech industry because insurers are increasingly prioritizing personalized, seamless, and digital-first experiences to meet rising consumer expectations and enhance customer loyalty.

The surge in Customer Experience Management (CEM) applications within the global insurtech industry reflects a fundamental shift in how insurance providers are approaching their relationship with policyholders. In today’s digital economy, customers expect the same level of responsiveness, personalization, and convenience from insurance companies as they do from e-commerce or streaming platforms. This has pushed insurtech firms to focus heavily on delivering frictionless, engaging, and value-added customer journeys from onboarding and policy comparison to claims processing and renewal.

CEM tools, powered by technologies like artificial intelligence (AI), natural language processing (NLP), machine learning, and predictive analytics, are revolutionizing customer interactions by enabling real-time insights into consumer behavior, preferences, and satisfaction levels. These insights help insurers tailor their services, recommend personalized insurance products, automate customer support through chatbots, and proactively address grievances before they escalate. Additionally, omnichannel communication strategies integrated through CEM platforms allow insurers to reach customers consistently across apps, websites, social media, and call centers, further strengthening brand trust and satisfaction.

Another crucial growth driver is the rising competition among insurtech startups and traditional insurers alike; in an industry where price margins are narrow and product differentiation is limited, customer experience becomes the defining factor for retention and growth. Moreover, younger, tech-savvy consumers especially Millennials and Gen Z are entering the insurance market with expectations for instant service, mobile engagement, and transparent processes, prompting providers to adopt CEM solutions to remain relevant.

The COVID-19 pandemic also played a key role in accelerating digital transformation, forcing insurers to innovate their customer engagement strategies to maintain service continuity during lockdowns and remote operations. Furthermore, regulatory bodies across various regions are pushing for greater transparency and customer-centric policies, aligning with the goals of CEM frameworks.

IoT (Internet of Things) is the fastest-growing technology in the global insurtech industry because it enables real-time data collection and risk assessment, allowing insurers to offer personalized policies, proactive services, and more accurate underwriting.

The rapid growth of IoT technology within the global insurtech industry stems from its transformative potential in reshaping how insurance products are developed, priced, and delivered. By connecting devices such as wearables, smart home sensors, telematics in vehicles, and health monitors, IoT creates an ecosystem where insurers can gather continuous, real-time data about customer behavior, environment, and health. This data-rich environment allows for unprecedented precision in risk assessment, enabling underwriters to move from static, historical models to dynamic, predictive models.

For example, telematics devices in cars help monitor driving behavior including speed, braking patterns, and mileage which can directly influence auto insurance premiums based on actual usage rather than broad demographic assumptions. Similarly, wearables like fitness trackers allow health insurers to offer wellness-based incentives, personalized coverage, or early interventions to reduce medical claims. In the property insurance domain, IoT-enabled sensors can detect water leaks, smoke, or temperature changes, alerting homeowners and insurers to potential damage before it becomes severe, thereby reducing claims frequency and severity.

This proactive risk management approach benefits both policyholders, who experience improved protection and potentially lower premiums, and insurers, who see reduced losses and improved operational efficiency. Moreover, the integration of IoT aligns with the growing consumer demand for personalization and transparency in insurance. Policyholders increasingly value coverage that reflects their real-world behavior and lifestyle, rather than generalized pricing structures.

Consulting services are the fastest-growing type in the global insurtech industry because insurers increasingly rely on expert guidance to navigate digital transformation, regulatory complexity, and emerging technologies in a rapidly evolving market.

The growing prominence of consulting services in the global insurtech industry is largely driven by the urgent need for traditional insurance companies and emerging insurtech startups to adapt quickly to technological disruption and shifting consumer expectations. As the insurance landscape becomes more digitized, complex, and competitive, companies are turning to specialized consulting firms to help them strategize, implement, and optimize new-age solutions. These services are critical for guiding insurers through digital transformation initiatives, whether integrating artificial intelligence (AI), blockchain, Internet of Things (IoT), cloud computing, or advanced data analytics into their operations.

Most insurers, particularly long-established players, often lack the in-house expertise and agility to undertake these significant transitions independently. Consultants bring in deep industry knowledge, technological proficiency, and tailored solutions that help bridge this capability gap. Additionally, the global regulatory environment is becoming increasingly intricate, with frequent updates to compliance frameworks, cybersecurity laws, and data privacy mandates such as GDPR or region-specific insurtech legislation. Consulting services provide the necessary risk management insights and legal compliance support, enabling insurers to operate smoothly across borders and avoid costly penalties.

Another factor propelling this growth is the rising need for customer experience transformation. Consultants help insurers redesign their customer journey strategies, build omnichannel engagement models, and introduce automation to enhance responsiveness and satisfaction. This demand has been further accelerated by the COVID-19 pandemic, which forced rapid digitalization and highlighted the value of external strategic support in crisis management and business continuity planning.

Insureds are the fastest-growing end-user type in the global insurtech industry because of rising consumer demand for personalized, digital-first insurance solutions that offer affordability, transparency, and convenience through technology.

The insureds individual policyholders and customers have emerged as the fastest-growing end-user type in the global insurtech industry due to a fundamental shift in consumer behavior, expectations, and engagement with insurance services. In the past, insurance was often considered complex, opaque, and inaccessible, especially to younger demographics and underserved populations. However, the rise of insurtech has radically transformed this perception by leveraging technologies such as mobile apps, AI-powered platforms, blockchain, and data analytics to deliver highly personalized, user-friendly, and cost-effective insurance products.

Today’s digitally savvy customers particularly Millennials and Gen Z are no longer willing to endure time-consuming processes or one-size-fits-all policies. Instead, they seek seamless digital experiences, instant quotes, on-demand coverage, and real-time claims processing, all of which are being provided directly to insureds through insurtech platforms.

This direct-to-customer model is cutting out intermediaries, reducing administrative costs, and putting more control in the hands of the insured, further boosting adoption rates. Additionally, mobile-first ecosystems and the widespread use of internet-enabled devices have made insurance more accessible than ever, especially in emerging markets where traditional infrastructure is lacking.

Microinsurance, pay-as-you-go models, usage-based insurance, and subscription plans - all designed with end users in mind - are making insurance relevant and affordable to a broader audience, including gig workers, freelancers, and rural populations. The COVID-19 pandemic was a turning point, heightening awareness of health, financial security, and risk protection, which led to a significant spike in demand for digital insurance products among individual users.

The Asia Pacific region is growing in the global insurtech industry due to its massive underserved population, rapid digital adoption, and supportive government policies promoting financial inclusion and innovation.

The Asia Pacific region is emerging as one of the fastest-growing segments in the global insurtech industry, primarily driven by its unique combination of demographic, technological, and economic factors. The region’s accelerated digital transformation, spurred by widespread smartphone penetration, increasing internet access, and a young, tech-savvy consumer base, has made it easier for insurtech startups and incumbents alike to deploy mobile-first platforms, digital claims processing, and AI-powered underwriting.

Additionally, emerging markets within the Asia Pacific, such as India, Indonesia, Vietnam, and the Philippines, are leapfrogging legacy systems and adopting cloud-based insurance models that are scalable, efficient, and cost-effective. Governments and regulators in Asia Pacific have also played a proactive role in enabling insurtech growth. Countries like Singapore and Hong Kong have launched regulatory sandboxes, allowing startups to innovate without being burdened by full regulatory compliance from the outset. India’s IRDAI has encouraged digital insurance distribution, while countries like China have integrated insurance offerings within popular ecosystems like WeChat and Alipay.

These developments have significantly lowered barriers to entry for tech-based insurers and made insurance products more accessible to underserved rural and urban populations alike. Moreover, rising awareness of health, life, and disaster insurance following events like the COVID-19 pandemic and increasing climate-related disasters has pushed consumers to seek digital insurance solutions that are flexible, transparent, and fast to access.

• In May 2025, Chubb Life Hong Kong introduced a new digital insurance product, Health Up, combining term life and accidental death coverage with a suite of annual health and wellness benefits. To support customer acquisition, Chubb is offering a 30% discount on Health Up through its partner networks such as JP Partners Medical and Vita Green. Their members are eligible for a 30% discount with no time limit.
• In May 2025, Toolstation, one of the UK’s largest suppliers of tools, accessories and building supplies, has partnered with Superscript, the digital insurance broker, to provide Toolstation customers with access to a new insurance offering. The partnership is designed to safeguard tradespeople across Britain from the unexpected with smart, digital insurance solutions for every type of trade including covers such as public liability insurance, employers liability insurance, contract works cover, tool insurance, accident and illness cover and much more.
• In January 2025, Lazada, Southeast Asia’s eCommerce platform, and Peak3, a global insurance technology company, have announced the launch of a joint venture (JV) to build a digital and embedded insurance ecosystem in Southeast Asia. Bill Song, Group CEO of Peak3 stated, “We’re honoured to be recognised as one of the leading InsurTech innovators globally. This acknowledgement underscores our commitment to enabling insurers and insurance intermediaries with future-ready cloud, data, and AI solutions, making insurance more accessible, relevant, and convenient. We’re excited to advance innovation to meet the industry’s evolving needs”.
• In December 2024, Sure partnered with CU Financial Group, LLC to unveil SimpleQuote, the latest digital insurance solution that will help credit unions provide their members seamless access to insurance.
• In November 2024, Fedo.ai partnered with Canara HSBC Life Insurance to launch non-invasive health assessments using AI. This strategic partnership is aimed at enhancing the customer experience in health assessments.

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.