Insurtech Market Size to Surge to USD 739.69 Billion by 2035 as AI-Led Insurance Platforms Scale Worldwide

According to Precedence Research, the global insurtech market size was estimated at USD 36.05 billion in 2025 and is predicted to surpass around USD 739.69 billion by 2035, growing at a CAGR of 35.27% from 2026 to 2035.

Ottawa, Feb. 10, 2026 (GLOBE NEWSWIRE) -- Surging insurance claims are accelerating investments in AI-driven digital infrastructure to boost efficiency and customer experience. Meanwhile, blockchain and crypto adoption are modernizing payments and policy management, fueling Insurtech growth.

What is the Insurtech Market Size in 2026?

The global insurtech market size is evaluated at USD 50.03 billion in 2026 and is anticipated to attain nearly USD 739.69 billion by 2035, with a strong CAGR of 35.27% from 2026 to 2035. The rise in fraud detection and high investment in traditional insurance firms drives market growth.

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Insurtech Market Key Highlights

North America dominated the global insurtech market, accounting for the largest revenue share of 38% in 2025, driven by early technology adoption and a strong digital insurance ecosystem.
Based on services, the managed services segment emerged as the market leader, capturing 43% of the total market share in 2025, supported by rising demand for scalable and cost-efficient IT operations.
By type, the health segment generated the highest revenue contribution, holding a 26% market share in 2025, fueled by growing digital health insurance solutions and data-driven underwriting.
In terms of technology, cloud computing led the market with a 28% share in 2025, owing to its flexibility, security, and ability to support real-time insurance operations.
By end user, the BFSI segment accounted for the largest revenue share of 22% in 2025, as insurers and financial institutions increasingly invest in digital transformation initiatives.

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What is Insurtech?

Insurtech is the utilization of technology to automate the operation of the traditional insurance industry. It is an abbreviation for insurance technology and uses technologies like IoT, AI, and ML for different purposes. It offers benefits like enhancing operational efficiency, faster claims processing, advanced fraud detection, improving underwriting accuracy, claims personalization, developing innovative products, and risk assessment. The various examples of insurtech are Go Digit Insurance, on-demand insurance, micro-insurance, embedded insurance, usage-based insurance, and others.

The insurtech market growth is driven by the strong focus on enhancing customer experience, increased investment in insurance companies, robust growth of digital infrastructure, strong focus on preventing fraud, increasing need for enhancing underwriting accuracy, popularity of embedded insurance, and the focus on accurate risk assessment.

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Insurtech Market Opportunity

Growing Personalization Demand Unlocks Market Opportunity

The increased consumer demand for tailored insurance policies and the focus on risk assessment on an individual basis increase demand for insurtech. The consumer focus on digital-first experiences and the consumer financial goals increases demand for personalised solutions. The increased utilization of usage-based insurance requires insurtech.

The consumer focuses on increasing satisfaction, and the need for 24/7 availability increases demand for personalization, which requires insurtech. The company's focus on decreasing policy cancellations and providing seamless interactions increases demand for insurtech. The growing personalization creates an opportunity for the growth of the insurtech market.

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Insurtech Market Scope

Report Metrics	Details
Market Size in 2025	USD 36.05 Billion
Market Size in 2026	USD 50.03 Billion
Market Size by 2035	USD 739.69 Billion
Growth Rate (2026 – 2035)	35.27% CAGR
Dominating Region	North America
Fastest Growing Region	Asia Pacific
Base Year	2025
Forecast Period	2026 to 2035
Segments Covered	Services, Deployment Model, Type, Technology, Application, and End Use
Regions Covered	North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

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Insurtech Regional Insights

Why North America is Dominating the Insurtech Market?

North America dominated the insurtech market with a 38% share in 2025. The well-established financial infrastructure and the increasing use of convenient insurance products increase demand for insurtech. The strong presence of digital infrastructure and the strong consumer focus on personalised insurance increases adoption of insurtech. The presence of companies like Oscar Health, Hippo Insurance, Ethos Life, Kin Insurance, Lemonade, and Root Insurance drives the overall market growth.

How Big is the Size of the U.S. Insurtech Market in 2026?

According to Precedence Research, the U.S. insurtech market size is expected to be worth around USD 204.42 billion by 2035, increasing from USD 13.25 billion in 2026, with a solid CAGR of 35.92% from 2026 to 2035.

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U.S. Insurtech Market

The U.S. insurtech market is a global leader, driven by advanced digital infrastructure, high insurance penetration, and strong venture capital activity. Insurtech companies in the U.S. focus on leveraging artificial intelligence, big data analytics, IoT, and cloud computing to modernize underwriting, claims management, fraud detection, and customer engagement. The market is characterized by strong collaboration between traditional insurers and technology-driven startups, enabling faster product innovation and personalized insurance offerings. Regulatory support for digital transformation and increasing consumer demand for seamless, on-demand insurance experiences continue to accelerate market growth across life, health, property, and casualty insurance segments.

How is Asia Pacific experiencing the Fastest Growth in the Insurtech Market?

Asia Pacific is experiencing the fastest growth in the market during the forecast period. The robust expansion of smartphone-based insurance platforms and the rise in the integration of insurance in e-commerce increase demand for insurtech. The strong focus on automating claims and the growing demand for health coverage increases adoption of insurtech. The supportive regulations for digital insurance and the transition towards personalised policies support the overall market growth.

India Insurtech Market

The India insurtech market is rapidly evolving, fueled by rising internet penetration, widespread smartphone adoption, and a growing digitally savvy population. Insurtech firms in India are playing a crucial role in expanding insurance access by offering affordable, simplified, and customer-centric solutions, particularly to underserved and first-time buyers. The market emphasizes digital distribution, micro-insurance, AI-based risk assessment, and automated claims processing. Strong government initiatives promoting financial inclusion, along with partnerships between insurers, fintech firms, and technology providers, are driving innovation and scalability, positioning India as one of the fastest-growing insurtech ecosystems globally.

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Insurtech Segmental Insights

Services Insights

Why Managed Services Segment Dominates the Insurtech Market?

The managed services segment dominated the insurtech market with a 43% share in 2025. The strong focus on modernizing legacy systems and the growing cyber threats increases demand for managed services. The growing development of personalised insurance products and the popularity of the consumption-based subscription model increase the adoption of managed services. The scalability, 24/7 monitoring, rapid deployment, cost efficiency, and predictability of managed services drive market growth.

Deployment Model Insights

What made Cloud Segment Dominate the Insurtech Industry?

The cloud segment dominated the insurtech industry in 2025. The growing development of digital first product and the strong focus on superior disaster recovery increase demand for cloud. The cost-effectiveness, flexibility, enhanced agility, and improved security of cloud help market expansion. The growing personalised offerings and the strong focus on providing better customer services require cloud, supporting the overall market growth.

Type Insights

How did the Health Fragment Segment hold the Largest Share in the Insurtech Industry?

The health fragment segment held the largest revenue share of 26% in the insurtech industry in 2025. The transition towards proactive care and the increased utilization of wearable devices increase demand for insurtech. The growing healthcare expenditure and the higher need for personalised health plans increase the adoption of insurtech. The robust growth in digital health services and the growing health insurance penetration drive the market growth.

Technology Insights

Why Cloud Computing Segment Dominating the Insurtech Market?

The cloud computing segment dominated the insurtech market with a 28% share in 2025. The strong focus on risk management in insurance and the higher need for enhancing financial efficiency increase demand for cloud computing. The need for disaster recovery and the development of new digital services requires cloud computing. The unmatched scalability, faster speed, enhanced data security, and improved integration of cloud computing support the overall market growth.

Application Insights

How Product Development and the Underwriting Segment Dominated the Insurtech Industry?

The product development and underwriting segment dominated the insurtech industry in 2025. The strong focus on providing 24/7 customer support and the development of usage-based insurance increase demand for insurtech. The focus on lowering fraud and the increasing use of proactive risk assessment requires insurtech. The increased automation of document review and the development of parametric insurance support the market growth.

End User Insights

Which End User held the Largest Share in the Insurtech Industry?

The BFSI segment held the largest revenue share of 22% in the insurtech industry in 2025. The increased use of cyber insurance in the BFSI sector and the need for automating complex processes increase demand for insurtech. The explosion of digital payments and the focus on improving fraud detection require Insurtech. The high amount of data generation in the BFSI industry and the focus on avoiding financial losses drive the overall market growth.

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Competitive Landscape in the Insurtech Market

Damco Group
DXC Technology Company
Insurance Technology Services
Majesco
Oscar Insurance
Quantemplate
Shift Technology
Trav, Inc.
Wipro Limited
ZhongAn Insurance

Recent Developments

In February 2026, Insurify launched an industry-first ChatGPT insurance app. The app simplifies insurance discovery and helps in reviewing coverage options. The app can finalize the purchase policy and transforms car insurance shopping experience. (Source:-https://fintech.global)
In December 2025, Orange Poland collaborated with bolttech to launch a new digital insurance platform, Insure with Orange. The platforms make insurance purchasing convenient and introduce value-added services. The platform provides different coverage options and human assistance. (Source:-https://fintech.global)

In January 2026, Apollo collaborated with ZenHedge to launch a new parametric Freight Expense Insurance solution. The solution offers services like providing underwriting capability, strategic support, approved coverholder, and market reach. (Source:-https://www.reinsurancene.ws)

Segments Covered in the Report

By Services

Consulting
Support & Maintenance
Managed Services

By Deployment Model

On-premise
Cloud

By Type

Auto
Business
Health
Home
Specialty
Travel
Others

By Technology

Blockchain
Cloud Computing
IoT
Machine Learning
Robo Advisory
Others

By Application

Product Development & Underwriting
Sales & Marketing
Policy Admin Collection & Disbursement
Claims Management

By End User

Automotive
BFSI
Government
Healthcare
Manufacturing
Retail
Transportation
Others

By Region

North America
- U.S.
- Canada
- Mexico
- Rest of North America
South America
- Brazil
- Argentina
- Rest of South America
Europe
- Western Europe
  - Germany
  - Italy
  - France
  - Netherlands
  - Spain
  - Portugal
  - Belgium
  - Ireland
  - UK
  - Iceland
  - Switzerland
  - Poland
  - Rest of Western Europe
- Eastern Europe
  - Austria
  - Russia & Belarus
  - Türkiye
  - Albania
  - Rest of Eastern Europe
Asia Pacific
- China
- Taiwan
- India
- Japan
- Australia and New Zealand,
- ASEAN Countries (Singapore, Malaysia)
- South Korea
- Rest of APAC
MEA
- GCC Countries
  - Saudi Arabia
  - United Arab Emirates (UAE)
  - Qatar
  - Kuwait
  - Oman
  - Bahrain
- South Africa
- Egypt
- Rest of MEA

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