United States Insurtech Market Overview, 2030

Following the 2008 financial crisis, the development of Insurtech in the United States picked up speed. The insurance industry also understood the pressing need for innovation as the financial industry looked for ways to restore public confidence and operational efficiency. With companies using new technologies to challenge old procedures and introduce customer-centric models, this period saw the rise of the Insurtech movement. Some of the first Insurtech pioneers were nurtured in Silicon Valley, which already had a well-established ecosystem of technological talent, venture capital, and an entrepreneurial culture. Several of these startups were funded by well-known venture capital companies that were looking to utilize technology-based solutions to revolutionize conventional financial services, such as insurance. The implementation of the California Consumer Privacy Act CCPA is one of the game-changing regulatory changes that have influenced the development of Insurtech in the United States. The CCPA, which was approved in 2018, has had a direct impact on how Insurtech businesses gather, store, and utilize user information since it grants consumers greater authority over their personal data. This regulation led Insurtech businesses to create more transparent and secure data procedures, with privacy compliance as a key component of their tech products. The growth of usage-based insurance UBI, notably in the automotive industry, has been a significant advancement in product creation. Telematics technology gives insurers the ability to evaluate driving behavior in real time and create pricing models that prioritize safety and personalize premiums, which is attractive to consumers who are knowledgeable about technology and mindful of costs. The risk analysis of insurance has been completely transformed by the integration of artificial intelligence AI into underwriting procedures. In terms of automating data gathering, AI has increased the speed of claim processing, improved predictive models, and enhanced the operational efficiency and correctness of policy issuance.

According to the research report, ""US Insurtech Market Overview, 2030,"" published by Bonafide Research, the US Insurtech market is anticipated to grow at more than 39.62% CAGR from 2025 to 2030. The U.S. Insurtech market is expanding quickly due to major innovations like embedded insurance in e-commerce platforms. By removing conventional friction points and significantly increasing accessibility, embedded insurance allows consumers to effortlessly purchase coverage at the moment of purchase, whether it is for a vehicle, plane ticket, or electronics. Taking advantage of consumers' desire for convenience, big e-commerce companies and retailers are now increasingly partnering with Insurtech companies to provide customized coverage choices at the checkout. Furthermore, there has been an increase in mergers and acquisitions M&A between Insurtech businesses and established insurance incumbents. These strategic transactions frequently concentrate on purchasing cutting-edge data skills, customer bases, or technologies that might provide established players a competitive advantage in the rapidly digitizing insurance market. M&A allows smaller businesses to expand quickly by utilizing the operational infrastructure of older insurers. By enhancing access to coverage, notably through digital-first platforms that streamline policy issuance, claims, and telehealth integration, Insurtech innovations are also revolutionizing the health insurance industry. These advances are essential for closing gaps in health coverage, particularly for disadvantaged groups. Venture capital VC investments continue to be a key factor in the development of the U.S. Insurtech industry. As climate-related catastrophes like hurricanes, wildfires, and floods become more prevalent, Insurtech firms are creating parametric insurance models that offer faster payouts based on predetermined event triggers, as opposed to conventional claim assessments. These products target people as well as enterprises that are susceptible to environmental dangers.

Auto insurance is one of the most significant segments, and it has undergone a transformation thanks to usage-based models that make use of connected vehicles and telematics. Business insurance is another expanding sector, especially for small and medium-sized businesses SMEs looking for flexible, on-demand coverage for cyber, liability, and property risks, while drivers may now take use of customized premiums based on real-time driving behavior, which makes insurance more data-driven and equitable. With configurable choices, Insurtech platforms streamline the quotation and policy-binding process, frequently providing immediate coverage. Through Insurtech solutions that combine wearable health data, telemedicine services, and AI-driven risk profiling, there has also been a notable shift in the field of health insurance. By integrating smart home technology, home insurance has changed, enabling insurers to provide proactive risk prevention services like fire or water leak monitoring, as well as policy discounts for connected home appliances, while also streamlining access to treatment and claims reimbursement, which helps people find affordable health plans. Specialized insurance caters to particular areas like wedding insurance, pet insurance, and coverage for high-end and collectible items. These often rely on complex algorithms to underwrite special risks that traditional insurers usually ignore. In the meanwhile, the Travel insurance industry has adopted embedded models, enabling customers to purchase coverage for trip cancellations, medical emergencies while traveling, or missing luggage at the time of making airline or hotel reservations. The others category comprises new industries such as parametric insurance for climate risks, gig worker coverage, and device protection plans. These insurance products are designed with today's consumers and companies in mind, with a focus on speed, personalization, and availability via digital-first platforms.

The Insurtech ecosystem is not entirely dependent on technology platforms and products, it also depends on a wide range of services that help insurers and digital businesses through their transition. The cornerstone of assisting both traditional insurance companies and Insurtech companies in overcoming the challenges of digitalization, regulatory compliance, and operational change is providing consulting services. These consulting assignments often cover data analytics methods, process reengineering, technology road mapping, and advice on how to incorporate revolutionary technologies like AI, blockchain, and machine learning into vital insurance operations. Businesses may also benefit from strategic consulting in terms of creating customer-centric digital experiences, introducing cutting-edge insurance products, and discovering fresh sources of income. Support and Maintenance services keep insurance platforms, apps, and digital portals safe, current, and functioning. Regular updates, cybersecurity fixes, and compliance enhancements are now necessary for uninterrupted business operations because Insurtech solutions are becoming more cloud-based and API-driven. Technical problems are resolved, downtime hazards are managed, and smooth integration with third-party ecosystems such as payment gateways, regulatory reporting frameworks, and customer relationship management CRM systems are ensured via support services. These services are essential for preserving consumer confidence in the growing number of digital insurance interactions. Another important area is Managed Services, in which insurers contract out their IT operations, infrastructure management, and even aspects of their customer interaction procedures to specialized service providers. By utilizing expert partners to address complicated technical demands, insurance businesses may concentrate on their primary strengths using this strategy. Managed services frequently encompass complete solutions, provided through scalable cloud platforms, such as data management, fraud detection, policy administration, and claims processing. Insurers may reduce operational costs, increase agility, and speed up the time to market for new products by switching to managed services.

The Insurtech market caters to a wide range of end users, each with unique needs and functions within the insurance value chain. Insurtech solutions, which use digital platforms to update underwriting, automate claims processing, and create tailored insurance products, are mostly adopted by insurance firms. These technologies enable traditional insurers to improve the customer experience, lower operational expenses, and remain competitive with the new digital-first businesses. Blockchain for transparent transactions, IoT integrations for risk monitoring, and AI-powered data analytics are only a few of the innovations enabling insurers to provide their clients with more intelligent and adaptable products. Traditionally serving as the connection between insurers and policyholders, brokers and agents have also adopted Insurtech solutions to boost their efficiency and client interaction. Digital quoting platforms, CRM integration, and automated lead creation enable agents to offer clients a quicker, more customized service while lowering administrative costs. Several Insurtech platforms provide brokers with AI-driven insights that help those pair customers with the best policy option, which increases sales conversion rates and enhances client happiness. Third-Party Administrators TPAs are another important user group. They handle claims processing, policy servicing, and customer support for insurance companies. TPAs use Insurtech platforms to improve operations, maintain regulatory compliance, and handle complicated claims more quickly and effectively. Cloud-based platforms, AI, and automation have all contributed to a notable increase in TPA operational efficiency while also decreasing human errors. Last but not least, the end consumers, known as insureds, are using simple apps, embedded insurance choices, customer assistance chatbots, and customized plan recommendations to engage with Insurtech more and more. Nowadays, those with insurance anticipate transparency, self-service options, and immediate access to policy details. These expectations are met by Insurtech solutions, which empower consumers with more control and knowledge over their insurance coverage.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Insurtech Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• Auto
• Business
• Health
• Home
• Specialty
• Travel
• Others

By Service
• Consulting
• Support & Maintenance
• Managed Services

By End-User
• Insurance Companies
• Brokers and Agents
• Third-Party Administrators
• Insureds Show more