The global insurtech market is expected to reach $27.8 billion by the end of 2024 and could reach as high as $239.2 billion by 2033, according to a report by Dimension Market Research.

In the U.S., the sector is projected to peak at $9.2 billion in 2024, the data showed, at a compound annual growth rate of 25.3% over its forecast period.

Dimension Market Research’s global insurtech market trends of 2024:

• AI and predictive analytics integration: Insurers are using AI and machine learning for more precise underwriting, dynamic pricing, and fraud detection. Predictive analytics helps insurers understand customer behavior, optimize risk assessment, and offer personalized policies.
• Blockchain adoption: Blockchain technology is being explored for ease of claims and underwriting through smart contracts, minimizing the need for intermediaries and improving transparency in processes.
• Telematics and IoT for risk management: Devices like vehicle telematics and home sensors enable real-time data collection, enabling insurers to offer behavior-based premiums and improve claims processing.
• Hybrid digital-human interaction: While digital platforms are getting prominence, maintaining a human element remains crucial for complex processes. Insurers are aiming on omnichannel strategies, balancing digital and personal interactions to enhance customer engagement and satisfaction.