Insurance Information Technology (IT) Spending Market Report 2026

The insurance information technology (it) spending market size has grown rapidly in recent years. It will grow from $336.56 billion in 2025 to $374.88 billion in 2026 at a compound annual growth rate (CAGR) of 11.4%. The growth in the historic period can be attributed to increasing complexity of insurance operations, growing demand for operational efficiency, expansion of digital customer interaction channels, rising regulatory reporting requirements, adoption of enterprise-wide IT modernization programs.

The insurance information technology (it) spending market size is expected to see rapid growth in the next few years. It will grow to $570.96 billion in 2030 at a compound annual growth rate (CAGR) of 11.1%. The growth in the forecast period can be attributed to increasing adoption of AI-enabled insurance applications, rising investments in cloud-native architectures, expansion of data-driven underwriting models, growing focus on real-time customer engagement systems, increasing demand for scalable IT infrastructure. Major trends in the forecast period include increasing migration to cloud-based insurance platforms, rising investment in advanced analytics and reporting tools, growing deployment of core insurance software systems, expansion of cybersecurity and data protection spending, enhanced focus on automation of insurance operations.

The growing adoption of cloud-based solutions is expected to drive the expansion of 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 the need for on-premise infrastructure. Their adoption is increasing due to the rising demand for scalable and agile infrastructure, as insurers aim to quickly respond to evolving customer expectations, streamline operations, and reduce the burden of maintaining on-premise systems. Cloud-based solutions enhance insurance IT spending efficiency by lowering infrastructure costs and offering scalable pay-as-you-go models, while also improving service deployment speed, data access, and security. For example, in May 2024, the Cloud Industry Forum, a UK-based not-for-profit trade body and membership organization, reported that 100% of surveyed organizations were using cloud-based services in 2024, with 49% implementing hybrid cloud strategies. Consequently, the growing adoption of cloud-based solutions is fueling the growth of 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 companies operating 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 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the insurance information technology (it) spending market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the insurance information technology (it) spending market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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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