Insurtech Statistics 2024: Funding, AI Adoption, and Regional Expansion
Barry Elad
Updated · Nov 27, 2024
As the insurance industry transforms, the rise of insurtech has redefined the traditional model of how insurance is accessed and managed. From smart contracts and AI-driven underwriting to customized policy delivery via digital platforms, insurtech has unlocked a new frontier, reshaping insurance as we know it. In 2024, more than ever, both investors and consumers recognize the potential of insurtech to deliver efficiency, accessibility, and personalization—all while trimming costs and improving service quality. The statistics below will paint a detailed picture of insurtech’s rapid expansion and key trends driving the industry this year.
Editor’s Choice: Key Funding Trends
- Total Insurtech Funding is projected to hit $15.8 billion globally in 2024, reflecting continued investor confidence in this burgeoning sector.
- Early-stage investments make up approximately 35% of total insurtech funding this year, showing robust interest in innovation-driven startups.
- Mergers and acquisitions in insurtech reached a record 70 deals in the first quarter of 2024, as companies sought to scale and access new markets.
- Funding for AI and automation-based insurtech solutions has surged by 23% year-over-year, emphasizing the industry’s push towards tech-enabled efficiency.
- Insurtech unicorns (companies valued at over $1 billion) grew by 15% in 2024, with 30 companies now classified as unicorns in this sector.
- U.S. and Europe remain dominant in insurtech funding, but Asia-Pacific saw a 45% growth in investments, reflecting regional interest and demand for digital insurance solutions.
- Embedded insurance models are drawing notable investor interest, contributing to nearly $1.5 billion in 2024 funding as more non-insurance companies integrate insurance products into their offerings.
Global Market Size and Growth Projections
- The global insurtech market is set to reach an estimated $76.3 billion by the end of 2024, a sharp increase from $64 billion in 2023.
- With a CAGR (Compound Annual Growth Rate) of 23.4% from 2023 to 2028, the insurtech sector’s growth far outpaces traditional insurance.
- North America leads the market with a 38% share, but Asia-Pacific is expected to grow the fastest, at a CAGR of 27%.
- Life and health insurance segments comprise 42% of insurtech’s market value, spurred by rising consumer demand for accessible, tailored coverage.
- Blockchain in insurtech is forecasted to contribute $3.2 billion to the global market value, as trust and transparency become essential factors for digital policyholders.
- In 2024, mobile-based insurtech applications are anticipated to generate $15 billion in revenue worldwide, highlighting the convenience and appeal of digital channels.
- Personalized policies, enabled by data analytics and machine learning, will drive 25% of all new policy subscriptions in the U.S., enhancing customer satisfaction through customized offerings.
| Market Aspect | 2024 Value | Growth Rate/Notes |
| Blockchain Market Contribution | $3.2 billion | Increasing role of blockchain |
| Mobile-based Revenue Generation | $15 billion | Highlights shift to digital channels |
Key Insurtech Investment Statistics
- Private equity investments in insurtech have risen by 30% since 2023, demonstrating investor confidence in long-term sector profitability.
- In Europe, the UK and Germany together account for nearly 55% of all regional insurtech investments in 2024.
- Insurtech IPOs have slowed, with only 5 public offerings anticipated in 2024, as companies favor private funding to scale their operations.
- Cyber insurance startups are attracting record funding, with $2.1 billion invested in 2024 alone, driven by the demand for cybersecurity coverage.
- The average deal size in 2024 reached $18 million, reflecting investors’ readiness to back high-potential insurtech companies.
- The Series B funding stage saw a 40% increase in 2024, indicating that more mid-sized insurtech firms are advancing to significant growth phases.
- Female-led insurtech startups gained 20% more funding this year compared to 2023, marking a positive trend toward inclusivity in the sector.
AI and Technology Adoption in Insurtech
- Artificial intelligence (AI) now powers 70% of insurtech platforms, streamlining underwriting, customer service, and claims processing.
- Chatbots and virtual assistants handle over 50% of customer inquiries in digital insurance services, providing quick and efficient responses.
- Machine learning algorithms improve fraud detection accuracy by 38%, helping insurers minimize fraudulent claims and reduce associated costs.
- In 2024, telematics-based insurance reached 8 million users, allowing insurers to set premiums based on real-time driving behavior.
- Robotic process automation (RPA) adoption in insurtech grew by 28%, accelerating policy issuance and claims management.
- The application of predictive analytics to assess client risk profiles has cut underwriting time by 60% on average.
- Wearable technology, such as health-monitoring devices, is influencing one in five health insurance policies, allowing for personalized premium adjustments.
Insurtech versus Traditional Insurance: Business Model Benefits
- Digital insurance platforms cut operational costs by 25% on average compared to traditional insurance, enabling lower premiums for customers.
- Customer retention is notably higher in insurtech, with an average 15% improvement due to faster claims processing and personalized services.
- Claims processing time is reduced by 40% on insurtech platforms, leveraging automation and AI for more efficient service.
- In 2024, user satisfaction rates for insurtech models were 20% higher than those for traditional insurers, highlighting the appeal of digital-first models.
- Paperless operations within insurtech companies cut administration costs by nearly 30%, supporting environmentally sustainable practices.
- Insurtech providers are twice as likely to offer personalized policies, drawing consumers seeking customized insurance solutions.
- Automated risk assessment tools reduce underwriting costs by 35%, making digital insurance options more affordable and accessible.
Regional Distribution of Insurtech Funding
- North America leads in insurtech funding, capturing 42% of total global investment in 2024, with the U.S. accounting for 85% of this regional funding.
- Europe’s insurtech investment is projected to grow by 18% this year, with Germany and the UK as primary hubs for innovation and funding.
- In the Asia-Pacific region, insurtech funding increased by 45%, driven by high adoption rates in India, Singapore, and China.
- Latin America saw a 30% rise in insurtech investments in 2024, with Brazil and Mexico leading regional growth.
- Africa’s insurtech sector is expanding, with investments doubling to over $300 million in 2024, primarily to support microinsurance and mobile-based solutions.
- The Middle East experienced a 25% increase in funding, with UAE and Saudi Arabia focusing on digital insurance for health and travel.
- Cross-border collaborations between the U.S. and Europe grew by 20%, allowing companies to leverage diverse market insights and technology advances.
| Region | Funding Share/Change | Notable Markets |
| North America | 42% | U.S. holds 85% of regional funding |
| Europe Growth Rate | +18% | Led by Germany and UK |
| Asia-Pacific Funding Growth | +45% | High adoption in India, Singapore, China |
| Latin America | +30% | Brazil and Mexico leading growth |
| Middle East Funding Growth | +25% | UAE and Saudi Arabia focus on digital health |
| Cross-Border Collaboration Growth | +20% | U.S.-Europe partnerships expanding |
Innovations Driving Insurtech Change
- Blockchain technology now supports 35% of insurtech platforms, enhancing data transparency and fraud prevention in policy management.
- Smart contracts reduce processing times for claims by 30% by automating policy execution, particularly in health and auto insurance.
- IoT-enabled devices, such as connected home systems, influence 10% of property insurance policies, using real-time data for proactive risk assessment.
- Usage-based insurance (UBI) models grew by 50% in 2024, allowing insurers to tailor premiums to customers’ individual behavior and usage patterns.
- Peer-to-peer (P2P) insurance has seen a 25% increase in adoption, with users drawn to the community-driven approach for policy benefits.
- Health monitoring wearables influence 15% of new health insurance policies, enabling insurers to reward healthy behaviors with premium discounts.
- Data-driven personalization allows insurtech companies to offer tailored policies, driving a 30% increase in customer engagement.
Changes to the Legal & Regulatory Framework
- Data privacy laws impacted 80% of insurtech companies in 2024, requiring adjustments to meet new data security standards and customer consent requirements.
- Regulatory sandboxes in countries like the UK, Singapore, and UAE enable safe testing of innovative insurtech solutions, fostering 25% growth in experimentation.
- In the U.S., 25 states now have specific insurtech regulatory frameworks, clarifying compliance requirements and supporting sector expansion.
- EU’s Digital Operational Resilience Act (DORA) mandates stricter cybersecurity for digital insurers, affecting all insurtech firms operating in Europe.
- Anti-fraud legislation requires more transparency from insurtech platforms, spurring a 15% increase in fraud detection tools.
- Global data sharing standards have been proposed to facilitate cross-border insurance claims, potentially saving $200 million in administrative costs annually.
- Consumer protection laws are evolving to cover insurtech models, with 40% of new regulations focused on fair pricing and transparent policy information.
Untapped Potential of Emerging Economies
- Emerging markets are projected to contribute $10 billion to the global insurtech market by 2025, with growth driven by rising smartphone penetration.
- Mobile-based insurance solutions are increasing accessibility, with 60% of insurtech users in Africa relying on mobile apps to manage policies.
- In Southeast Asia, the insurtech sector is expected to grow by 29% in 2024, with countries like Indonesia and Vietnam showing significant adoption rates.
- Microinsurance policies account for 25% of new policy subscriptions in Latin America, appealing to low-income users seeking affordable coverage.
- The Middle East and North Africa (MENA) region is seeing 20% annual growth in insurtech, spurred by demand for health and travel insurance.
- India’s insurtech market is expected to reach $1.5 billion by 2025, with telematics and digital health insurance models leading adoption.
- Government-backed digital initiatives in emerging economies, such as India’s Jan Dhan Yojana, are facilitating insurtech growth by providing low-cost digital solutions to underserved populations.
| Region | 2024-2025 Growth/Impact | Notes |
| Emerging Market Contribution (2025) | $10 billion | Driven by smartphone penetration |
| Mobile-Based Insurance Accessibility | 60% of users in Africa | Mobile as primary access channel |
| Southeast Asia Sector Growth | 29% | High adoption in Indonesia and Vietnam |
| Microinsurance Subscription Share | 25% in Latin America | Affordable policies for low-income users |
| MENA Region Growth | 20% annual growth | Demand for health and travel insurance |
| India Market Size (2025) | $1.5 billion | Telematics and digital health insurance lead |
| Gov’t Digital Initiatives (Emerging) | India’s Jan Dhan Yojana | Facilitates low-cost digital solutions |
Recent Developments
- Pay-as-you-go insurance has grown by 40% in 2024, as more consumers opt for flexible policies tailored to their specific usage needs.
- AI-driven fraud detection now operates on 75% of insurtech platforms, helping to prevent false claims and save insurers millions annually.
- Cyber insurance policies have surged in demand, with a 30% rise in 2024 as businesses seek coverage against digital threats and data breaches.
- Embedded insurance offerings in e-commerce and fintech grew by 25%, allowing consumers to purchase insurance directly during other online transactions.
- Telematics-based auto insurance policies now make up 20% of new car insurance sales in the U.S., adjusting premiums based on real-time driving behavior.
- Health tech integrations have become a focal point, with 40% of insurtech firms partnering with wearable tech providers to expand health monitoring features.
- The U.S. insurtech sector saw 10 new IPOs in 2024, reflecting strong investor confidence and allowing firms to scale rapidly in the public market.
Conclusion
The insurtech industry’s journey from a disruptor to a mainstay in the insurance ecosystem has been nothing short of transformative. By capitalizing on AI, blockchain, and mobile-based innovations, insurtech companies are reshaping how policies are developed, sold, and managed. As regulatory landscapes adapt to accommodate new models, and as emerging economies continue to embrace digital insurance solutions, the potential for growth remains immense. With its relentless focus on personalization, accessibility, and efficiency, insurtech will continue to redefine the global insurance market, offering more flexible and user-friendly solutions that meet the demands of a diverse and evolving customer base.
Sources
Barry Elad
Barry Elad is a dedicated tech and finance enthusiast, passionate about making technology and fintech concepts accessible to everyone. He specializes in collecting key statistics and breaking down complex information, focusing on the benefits that software and financial tools bring to everyday life. Figuring out how software works and sharing its value with users is his favorite pastime. When he's not analyzing apps or programs, Barry enjoys creating healthy recipes, practicing yoga, meditating, and spending time in nature with his child. His mission is to simplify finance and tech insights to help people make informed decisions.
