Press Release

United States Insurtech Market to Grow with a CAGR of 5.93% through 2030F

The United States Insurtech Market is growing due to technological innovations, demand for personalized policies, digital platform adoption, and partnerships between startups and traditional insurers, enhancing efficiency, customer engagement, and tailored insurance solutions.


According to TechSci Research report, “United States Insurtech Market – By Region, Competition, Forecast & Opportunities, 2020-2030F”, the United States Insurtech Market was valued at USD 50.32 Billion in 2024 and is expected to reach USD 71.10 Billion by 2030 with a CAGR of 5.93% during the forecast period. The United States insurtech market has witnessed substantial growth in recent years, driven by technological advancements, changing consumer preferences, and evolving market dynamics. Insurtech, a term that combines "insurance" and "technology," refers to the use of innovative technologies to disrupt and improve the traditional insurance industry. The U.S. has become a leading hub for insurtech innovation, with a burgeoning ecosystem of startups, established insurers, and tech companies working together to create more efficient, personalized, and customer-centric insurance products. The market's rapid expansion is fueled by the adoption of technologies such as artificial intelligence (AI), machine learning (ML), blockchain, and the Internet of Things (IoT), which are enhancing everything from underwriting to claims management and customer engagement.

Several factors are driving the growth of the insurtech market in the U.S. The first major driver is the continuous technological evolution in the insurance space. AI and machine learning are revolutionizing underwriting by analyzing vast amounts of data to assess risk and offer personalized pricing. Blockchain is streamlining claims processing and improving transparency, while IoT devices, such as connected car systems and smart home technology, are allowing for usage-based insurance (UBI) models that offer dynamic pricing based on real-time data. These technologies are enhancing operational efficiency and reducing costs for insurers, enabling them to provide better value to customers.

The U.S. insurtech market is undergoing several notable trends that are shaping its future. One significant trend is the rise of embedded insurance, where insurance products are integrated directly into the purchase process of other goods or services. For instance, consumers can now purchase insurance at the point of sale for items like electronics, travel, or automobiles, creating a seamless and convenient experience. This trend is gaining traction as it simplifies the insurance buying process and helps insurers expand their reach to new customers who might not otherwise consider purchasing insurance.


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The United States Insurtech Market is segmented into insurance type, business model and regional distribution.

Based on business model, carriers are the dominating segment. Carriers, which include both traditional insurance companies and newer, tech-driven insurance providers, play a central role in delivering insurance products to consumers. They are increasingly adopting insurtech solutions to enhance their underwriting, claims processing, and customer service. The growth of digital-first insurance providers and the integration of advanced technologies like AI, machine learning, and blockchain within their operations further strengthens their dominance. While enablers (technology providers) and distributors (platforms and brokers) are crucial in supporting and distributing insurance products, carriers lead in terms of market size and innovation adoption.

Based on region, West region is the fastest-growing segment of the United States insurtech market, driven by its thriving tech ecosystem and concentration of innovation hubs like Silicon Valley. The region is home to a large number of insurtech startups, venture capital firms, and technology giants that enable the development of cutting-edge insurance solutions. With high consumer adoption of digital platforms and a tech-savvy population, the West region fosters an environment ripe for growth in areas such as AI-driven underwriting, digital claims processing, and usage-based insurance models. These factors collectively contribute to its rapid expansion in the insurtech sector.


Major companies operating in United States Insurtech Market are:

  • Gusto, Inc.
  • Oscar
  • Molina Healthcare, Inc.
  • Clover Health
  • Root Inc.
  • American Well Corporation
  • Lemonade Insurance Agency, LLC
  • Next Insurance, Inc.
  • Metromile, Inc.
  • Hippo Enterprises Inc.


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The United States Insurtech Market is driven by factors such as technological advancements like AI and blockchain, rising demand for personalized insurance, digital adoption, and partnerships between startups and traditional insurers. The key trends include embedded insurance, usage-based models, growth in cyber insurance, and the integration of IoT for personalized offerings. Additionally, the move towards decentralized insurance and the focus on sustainability are shaping the market.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

United States Insurtech Market By Insurance Type (Life Insurance, Non-Life Insurance), By Business Model (Enabler, Carrier, Distributor), By Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of United States Insurtech Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the United States Insurtech Market.

 

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United States Insurtech Market By Insurance Type (Life Insurance, Non-Life Insurance), By Business Model (Enabler, Carrier, Distributor), By Region, Competition, Forecast & Opportunities, 2020-2030F

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The United States Insurtech Market is growing due to technological innovations, demand for personalized policies, digital platform adoption, and partnerships between startups and traditional insurers, enhancing efficiency, customer engagement, and tailored insurance solutions.

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