Hand holding smartphone for select insurance technology (Insurtech). Insurance concept.
The global insurtech market reached roughly $20 billion in 2025 and is expected to peak at $23.5 billion in 2026, according to Fortune Business Insights.
By 2034, the sector is predicted to reach $132.71 billion at a compound annual growth rate of 24.1%. Meanwhile, North America dominated the global market share in 2025 at 47.9%.
“Insurtech is primarily driven by the adoption of technologies that enhance the customer experience, streamline operations and reduce costs,” Fortune Business Insights said. “Insurers are increasingly relying on AI, data analytics, cloud computing and automation to deliver more personalized efficient results. As a result of these factors, the markets has experienced tremendous growth, with more end users exploring the possibilities of enhanced insurtech solutions due to the proliferation of digital solutions and insurance services.”
At the same time, roughly half of all U.S. businesses use some form of AI but less than 5% have begun replacing jobs with the technology.
The vast majority (48%) say AI is being deployed to support existing teams, enhance productivity and fill gaps created by talent shortages rather than reduce headcount, while demanding new skills like data literacy, automation fluency and prompt engineering become baseline expectations across most functions.
Below are six insurtech trends predicted for 2026:
1. Belen Tokarski, president & COO of Mylo:
Even as automation and AI tools become more prevalent, humans will remain essential to advise customers, especially on complex commercial insurance decisions. Research shows that customers value being able to talk to a real person, so in a market full of AI hype, companies that maintain meaningful human touchpoints will stand out.
2. Graham Topol, Co-CEO and Co-Founder of MGT:
We see insurance as the unsung hero of the American economy. It's the engine that drives commerce, enabling entrepreneurs to take risks and pursue new opportunities. Technology allows us to do better risk segmentation and risk selection, enabling us to provide insurance for underserved markets.
We're not here to replace the deep knowledge and history of the insurance industry; instead, we're here to enhance it. Our approach is to blend old-school expertise with new-school technology. By combining deep industry expertise with full-stack technology, we don’t replace human capabilities; we augment it, allowing us to serve more of the market, more effectively.
3. Rashid Galadanci, CEO and co-founder of Driver Technologies:
There is a current shift in the mobility industry's approach to using third-party apps for connected vehicles. Many corporate legal teams at OEMs/automakers prefer not to have their own branded apps and want to distance themselves from directly handling user data via platforms like Google Built In. The insurance industry will also follow suit in order to enter the connected car market.
4. Nga Phan, head of product of Bolt:
In 2026, insurance will sit at the intersection of more complex risk and customers who expect everything to feel easier. I will be watching three things closely: how quickly AI moves from pilots into real workflows, how coverage and exclusions evolve around AI related losses, and how distribution models shift as agency, embedded and direct channels compete for the customer relationship in a market shaped by climate-driven volatility and tighter capacity.
5. Elad Tsur, chief AI officer, Applied Systems:
As we head into 2026, AI will continue to deliver more impact than ever across underwriting, servicing, and customer engagement. Most notably, we can expect to see the rise of vertical AI, with models trained on insurance-specific data and workflows.
This transformative tool will mark a turning point, and we will see more insurers moving beyond generic tools to adopt intelligent systems that understand risk, regulation and renewal cycles. Vertical AI is not just software, it is a foundational layer of domain intelligence that enables faster decisions, cleaner operations, and more confident execution across the insurance ecosystem. This shift is going to enable faster decisions, fewer errors, and measurable ROI rather than abstract innovation.
6. Tracie Thompson, global leader of strategic clients, Cytora:
As we move forward into 2026 there are a number of items which insurers must get ahead of to successfully implement AI into their workflows - regulation/governance, talent and legacy system modernization.
The industry’s high degree of regulatory and ethical oversight means AI must be deployed with rigor, transparency, and strong governance. Regulators want transparency, and insurers need defensibility in litigation. Transparency is key.
See also:
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