The rising use of technology in the insurance industry is reinventing the business landscape for agencies, brokers and customers.

The global insurtech market peaked at roughly $27.8 billion in 2024 and could reach as high as $239.2 billion by 2033. In the U.S., the sector reached $9.2 billion in 2024 at a compound annual growth rate of 25.3%.

According to Dimension Market Research, global insurtech market trends include:

  • AI and predictive analytics integration: Insurers are using AI and machine learning for more precise underwriting, dynamic pricing, and fraud detection. Predictive analytics helps insurers understand customer behavior, optimize risk assessment, and offer personalized policies.
  • Blockchain adoption: Blockchain technology is being explored for ease of claims and underwriting through smart contracts, minimizing the need for intermediaries and improving transparency in processes.
  • Telematics and IoT for risk management: Devices like vehicle telematics and home sensors enable real-time data collection, enabling insurers to offer behavior-based premiums and improve claims processing.
  • Hybrid digital-human interaction: While digital platforms are getting prominence, maintaining a human element remains crucial for complex processes. Insurers are aiming on omnichannel strategies, balancing digital and personal interactions to enhance customer engagement and satisfaction.
Meanwhile, the cyber insurance market peaked at roughly $17.77 billion in 2024 and is projected to reach $21.67 billion in 2025 at a compound annual growth rate (CAGR) of 22%.

“The cyber insurance market is ever changing with new insurance companies entering the market and others departing,” said Arthur Armstrong, a partner in Reed Smith’s insurance recovery group.

“Likewise, policy forms are continuously evolving to address new and different cyber risks,” he added. “Unfortunately, this has led to more exclusions and sublimits that negatively affect cyber coverage overall.A policyholder should work with an experienced broker to ensure that it is obtaining appropriate coverage with respect to scope and available policy limits.”

The slideshow above illustrates reasons cloud risk management is essential across industries according to SentinelOne.

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