Market Size of US Insurtech Industry
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 49.82 Billion |
| Market Size (2029) | USD 66.66 Billion |
| CAGR (2024 - 2029) | 6.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
US Insurtech Market Analysis
The US Insurtech Market size is estimated at USD 49.82 billion in 2024, and is expected to reach USD 66.66 billion by 2029, growing at a CAGR of greater than 6% during the forecast period (2024-2029).
The United States is the largest insurance market globally, and it has been a hotbed for insurtech companies. The market has experienced substantial growth in recent years, with investments pouring into insurtech startups. Insurtech has attracted significant venture capital investment. Insurtech companies leverage various technologies such as artificial intelligence (AI), machine learning (ML), big data analytics, the Internet of Things (IoT), and blockchain to streamline processes, enhance underwriting accuracy, automate claims handling, and personalize insurance products. Insurtech has facilitated the emergence of new insurance models, such as peer-to-peer (P2P) insurance, on-demand insurance, and usage-based insurance (UBI). These models offer more tailored coverage options and flexible pricing based on individual risk profiles. Insurtech companies in the United States focus on improving customer experience by offering user-friendly digital platforms, simplified policy purchasing processes, and faster claims settlement.
The post-COVID-19 scenario of the United States insurtech market is experiencing significant growth. Insurtech companies are leveraging technology to provide innovative solutions and streamline insurance processes. Factors like increased digitization, rising customer expectations, and the need for personalized insurance offerings are driving the market.
US Insurtech Industry Segmentation
Insurtech refers to technological innovations that are created and implemented to improve the efficiency of the insurance industry. Insurtech powers the creation, distribution, and administration of the insurance business. Macro trends have been driving change in the insurance risk landscape. And along with coping with new and emerging risks, the industry began to shift, in recent years, to include new business models and disruptive newcomers. The United States insurance market can be segmented by the types of insurance provided, which include life and non-life, and by a business model, which includes enabler, carrier, and distributor.
The report offers the value (in USD) for the above segments.
| By Business Model | |
| Carrier | |
| Enabler | |
| Distributor |
| By Insurance Type | |
| Life Insurance | |
| Non-Life Insurance |
US Insurtech Market Size Summary
The US insurtech industry is experiencing robust growth, driven by the integration of advanced technologies such as artificial intelligence, machine learning, big data analytics, the Internet of Things, and blockchain. These technologies are being utilized to streamline insurance processes, enhance underwriting accuracy, automate claims handling, and personalize insurance products. The market is characterized by the emergence of innovative insurance models like peer-to-peer, on-demand, and usage-based insurance, which offer tailored coverage options and flexible pricing based on individual risk profiles. The industry's expansion is further fueled by increased digitization, rising customer expectations, and the demand for personalized insurance offerings, all of which have been accelerated by the post-COVID-19 digital transformation.
The insurtech sector in the United States is highly competitive and fragmented, with numerous international and domestic players vying for market share. Companies such as Gusto, Oscar, Bright Health, Clover Health, and Root Insurance are currently leading the market. The growth of non-life insurance, particularly property and casualty insurance, is contributing to the industry's expansion as insurers adopt insurtech solutions for better risk assessment and policy pricing. This adoption enhances underwriting precision, improves customer experiences through digital platforms, and streamlines claims processing, thereby increasing operational efficiency. The market's competitive landscape is expected to drive further growth, with significant opportunities for expansion during the forecast period.
US Insurtech Market Size - Table of Contents
-
1. MARKET DYNAMICS
-
1.1 Market Overview
-
1.2 Market Drivers
-
1.2.1 Growing Demand for Data Analytics and Artificial Intelligence
-
1.2.2 Increasing Adoption of Digital Technologies
-
-
1.3 Market Restraints
-
1.3.1 Concerns about Data Privacy and Cybersecurity Impact Digital Insurance Platforms
-
-
1.4 Market Opportunities
-
1.4.1 Rising Demand for Innovative Solutions in Areas like Cybersecurity, Digital Health, and Telematic Presents
-
-
1.5 Porter's Five Forces Analysis
-
1.5.1 Bargaining Power of Suppliers
-
1.5.2 Bargaining Power of Buyers/Consumers
-
1.5.3 Threat of New Entrants
-
1.5.4 Threat of Substitute Products
-
1.5.5 Intensity of Competitive Rivalry
-
-
1.6 Insights on Various Technologies Driving the Insurtech Space Growth in United States
-
1.7 Insights on Regulatory Framework And Roadblocks for acquiring Fintech Licensing in United States
-
1.8 Funding And Investment Activity in Insurtech Space in United States
-
1.9 Impact of Insurtech in United States Insurance Industry
-
1.10 Impact of COVID-19 on the Market
-
-
2. MARKET SEGMENTATION
-
2.1 By Business Model
-
2.1.1 Carrier
-
2.1.2 Enabler
-
2.1.3 Distributor
-
-
2.2 By Insurance Type
-
2.2.1 Life Insurance
-
2.2.2 Non-Life Insurance
-
-
US Insurtech Market Size FAQs
How big is the US Insurtech Market?
The US Insurtech Market size is expected to reach USD 49.82 billion in 2024 and grow at a CAGR of greater than 6% to reach USD 66.66 billion by 2029.
What is the current US Insurtech Market size?
In 2024, the US Insurtech Market size is expected to reach USD 49.82 billion.
