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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