Insurance Information Technology (IT) Spending Market Report 2025

The insurance information technology Spending market size has grown rapidly in recent years. It will grow from $301.69 billion in 2024 to $336.56 billion in 2025 at a compound annual growth rate (CAGR) of 11.6%. The growth observed during the historic period is driven by regulatory compliance pressures, inefficiencies in manual processes, increasing data volumes from policyholders, rising demand for customized insurance products, and the early adoption of online policy platforms.

The insurance information technology Spending market size is expected to see rapid growth in the next few years. It will grow to $514.51 billion in 2029 at a compound annual growth rate (CAGR) of 11.2%. The projected growth during the forecast period is driven by increasing demand for seamless digital claim processing, the expansion of usage based insurance models, integration of telematics in underwriting, growing pressure to reduce fraud through real time detection, and the rise of embedded insurance distribution. Key trends expected in this period include the adoption of generative artificial intelligence tools, integration of blockchain in claim management, development of cloud native core insurance platforms, implementation of smart contract automation, and use of machine learning for customer segmentation.

The growing adoption of cloud based solutions is expected to drive the insurance information technology spending market in the coming years. Cloud based solutions are online services that provide flexible, on demand access to computing power, storage, and applications without relying on on premises infrastructure. Their increasing use is fueled by the need for scalable and agile infrastructure, as insurers aim to quickly respond to changing customer expectations, streamline operations, and reduce maintenance burdens associated with on premises systems. Cloud based solutions optimize insurance IT spending by minimizing costly infrastructure investments and offering scalable pay as you go models while improving efficiency through faster service deployment and enhanced data access and security. For example, in September 2022, Google Cloud reported that the use of multiple public clouds increased to 26 percent in 2022, up from 21 percent in 2021. Hybrid cloud utilization also grew, rising from 25 percent in 2021 to 42.5 percent in 2022. Consequently, the rising adoption of cloud based solutions is fueling growth in the insurance information technology spending market.

Leading companies in the insurance information technology spending market are developing advanced solutions such as artificial intelligence powered claims automation platforms to enhance operational efficiency and deliver more personalized customer service. These platforms use artificial intelligence and machine learning to process insurance claims automatically, detect fraudulent activities, and provide insights that enable insurers to make faster and more accurate decisions. For example, in March 2024, EIS, a US based software as a service provider, launched ClaimSmart, an intelligent cloud based solution that modernizes the entire claims process for insurers. It features ClaimPulse, which provides digital first notice of loss, automated claim workflows, and an integrated customer portal to speed up resolutions. It also includes ClaimGuard, which leverages artificial intelligence and machine learning to identify fraud and assign risk scores to claims. The platform helps insurers reduce manual efforts, improve the speed and accuracy of claims handling, and enhance overall customer satisfaction.

In July 2025, Zurich Insurance Group Ltd., a Switzerland based insurance and risk management company, acquired BOXX Insurance Inc. for an undisclosed amount. The acquisition aims to accelerate Zurich’s cyber protection strategy by integrating BOXX’s digital first, service led insurtech platform, enhancing its ability to provide comprehensive cyber insurance solutions, including prevention, protection, and recovery, for retail and SME customers across five continents. BOXX Insurance Inc. is a Canada based insurtech company specializing in insurance information technology spending through cyber insurance.

Major players in the insurance information technology (it) spending market are Accenture plc, Cognizant Technology Solutions Corporation, DXC Technology Company, Guidewire Software Inc., Zinnia Tech Solutions LLC, Vertafore Inc., Shift Technology, Sapiens International, Applied Systems Inc., Damco Group, EIS Group Inc., OneSpan Inc., Quantexa Limited, FINEOS Corporation Holdings plc, Insurity LLC, Adacta Fintech d.o.o., Safe Security Inc., Socotra Inc., CyberCube Analytics Inc., Bdeo Technologies S.L.

North America was the largest region in the insurance information technology spending market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in insurance information technology spending report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the insurance information technology spending market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

Insurance information technology (IT) spending refers to the investment made by insurance companies in digital tools and infrastructure to optimize operations and enhance customer service. The goal is to improve operational efficiency, comply with regulatory requirements, and drive innovation through advanced technologies. Such spending is critical for insurers to remain agile and competitive in a rapidly evolving digital landscape.

The primary categories of insurance IT spending include software spending, hardware spending, and information technology services spending. Software spending involves investments in applications that streamline policy administration, claims processing, and customer management while enabling automation, improved user interfaces, and integration of data analytics. These solutions are delivered through different deployment models, including on premises and cloud based systems, and are applied across various insurance types such as life and health insurance, property and casualty insurance, and reinsurance. They are used by enterprises of all sizes, including small and medium enterprises, for applications such as claims management, customer relationship management, billing and payment, policy administration, underwriting and risk management, analytics, and reporting.

The insurance information technology (IT) spending market research report is one of a series of new reports that provides insurance information technology (IT) spending market statistics, including the insurance information technology (IT) spending industry global market size, regional shares, competitors with the insurance information technology (IT) spending market share, detailed insurance information technology (IT) spending market segments, market trends, opportunities, and any further data you may need to thrive in the insurance information technology (IT) spending industry. This insurance information technology (IT) spending market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The insurance information technology spending market consists of revenues earned by entities by providing services such as regulatory compliance management, cybersecurity and data protection, and IT infrastructure management. The market value includes the value of related goods sold by the service provider or included within the service offering. The insurance information technology spending market also includes sales of networking equipment, data center infrastructure, data storage systems and servers. 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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