How big is the InsurTech market beyond digital insurance?

What actually counts as InsurTech today?

InsurTech today is much bigger than online insurance companies: the useful definition includes technology built specifically to price, underwrite, distribute, administer or settle insurance.

That brings companies such as Guidewire and Duck Creek into the market because insurers use their software to run policies, billing and claims. Verisk belongs because its data and models sit inside underwriting decisions. CCC Intelligent Solutions belongs because its technology connects insurers, repair shops and other participants during claims. Applied Systems and Vertafore serve brokers and agencies, while Akur8 and hyperexponential focus more narrowly on pricing.

Technology-heavy MGAs and embedded-insurance platforms can also qualify, although we have to be careful with how we measure them. A platform facilitating $1 billion of insurance premiums does not have $1 billion of technology revenue. Most of that money ultimately belongs to carriers, reinsurers, claims recipients and distributors.

Generic AWS usage, Microsoft software, cybersecurity tools and insurers' own technology employees sit outside our narrow definition. They matter when we look at the industry's technology budget, but calling all of them InsurTech would make the category almost meaningless.

Part of the insurance stack	Count as InsurTech?	Useful measure
Core policy and claims software	Yes	Vendor revenue
Insurance-specific data and analytics	Yes	Vendor revenue
Pricing and underwriting software	Yes	Vendor revenue
Broker and agency software	Yes	Vendor revenue
Insurance-specific AI automation	Yes	Vendor revenue
Embedded-insurance infrastructure	Usually	Platform fees or revenue
Technology-led MGAs	Sometimes	MGA economics, with premium shown separately
Digital insurers	Sometimes	Insurance revenue and premium, clearly separated
Generic cloud infrastructure	Usually no	Insurance IT spending
Insurers' internal developers	No	Internal IT spending
Generic cybersecurity products	Usually no	Insurance IT spending

Why do InsurTech market estimates vary by tens of billions of dollars?

InsurTech market estimates vary so much because researchers often put software revenue, insurance premiums and technology spending under the same label even though they measure completely different things.

Take an MGA. Conning now estimates that U.S. MGAs handled about $128 billion of premium in 2025. That tells us the delegated-underwriting channel has become enormous, but an MGA does not keep $128 billion as revenue. Carriers and reinsurers remain behind the insurance risk, claims consume part of the premium, and the MGA earns commissions and other underwriting economics.

Embedded insurance creates the same problem. McKinsey expects embedded insurance in Asia alone to reach around $270 billion of gross written premium by 2030. That is insurance sold through embedded channels, not $270 billion going to InsurTech platforms.

At the other end of the spectrum, definitions focused only on venture-backed startups leave out established insurance technology companies generating billions in annual revenue.

So a sensible market estimate needs at least three separate numbers: specialist InsurTech revenue, total insurer technology spending and insurance premium influenced by technology-enabled distribution. Adding them together would produce a very impressive number with very little economic meaning.

If you want more recent data on this point, please see our latest InsurTech market report.

Is InsurTech still mainly about digital insurance companies?

No. Today, a large part of the real InsurTech business sits behind insurers rather than in front of consumers.

The first InsurTech wave made companies such as Lemonade, Root and Hippo unusually visible. Their pitch was easy to understand: buy insurance through a cleaner digital experience, automate more of the underwriting and service, and challenge traditional carriers.

The industry's biggest technology businesses tell a different story now. Guidewire finished fiscal 2026 with $1.475 billion of revenue. Verisk generated $3.073 billion in 2025 from a business focused on insurance data and analytics. CCC is guiding to roughly $1.16 billion of revenue in 2026. After its recent acquisitions, Majesco says it has become a roughly $500 million revenue company.

Those four businesses alone represent more than $6 billion of annual revenue. None depends primarily on persuading consumers to abandon a traditional insurer and buy a policy from a new digital brand.

The consumer-facing side gets attention because people can see it. More of the money now sits in core systems, underwriting tools, claims infrastructure, broker software and data.

How much are insurers spending on technology right now?

Global insurers are currently spending about a quarter of a trillion dollars a year on technology, giving InsurTech vendors a much larger economic base to attack than startup funding numbers suggest.

Gartner's latest worldwide forecast puts insurance IT spending at $256.8 billion in 2026, up 9.4% from the previous year. Gartner expects software spending to grow even faster, at a 13.4% compound annual rate between 2024 and 2029.

Put that beside the underlying industry. Allianz Research estimates global insurance premiums reached €6.9 trillion in 2025. Insurers therefore operate huge businesses while spending only a few percent of premium volume on technology.

A $257 billion technology budget leaves plenty of room for specialist software companies to become large without taking much share. A vendor capturing just 0.5% of that spending pool would already have more than $1.2 billion in annual revenue.

The catch is that InsurTech companies can never realistically capture the whole budget. Insurers will keep paying internal technology staff, cloud providers, consultancies, cybersecurity companies and general enterprise-software vendors. The $256.8 billion figure works best as the upper boundary around the opportunity.

So how big is the actual InsurTech revenue pool inside that $257 billion IT budget?

The specialist InsurTech revenue pool is already in the tens of billions of dollars, although the available evidence does not support calling the full $257 billion insurance IT budget an InsurTech market.

We can establish a fairly hard floor from major vendors. Verisk, Guidewire, CCC and Majesco contribute more than $6 billion together. Then we still have large private companies such as Duck Creek, Applied Systems, Vertafore and Insurity, plus Sapiens, dozens of underwriting and claims platforms, broker technology, fraud software, catastrophe analytics and hundreds of smaller vendors.

Insurer spending surveys also show why the ceiling is much higher than today's specialist vendor revenue. Celent's work on P&C insurers has repeatedly found large technology budgets split between internal spending and external providers. In its Asia-Pacific model, for example, around $25 billion of roughly $55 billion in insurer IT spending was external.

Even that external portion cannot all be called InsurTech because companies such as AWS, Microsoft and Accenture absorb some of it.

We would resist a falsely precise $43.7 billion or $61.2 billion answer. The evidence is strong enough to say "tens of billions" today and weak enough that pretending we know the exact global total would reduce, rather than improve, accuracy.

If you want more recent data on this point, please see our latest InsurTech market report.

Is insurance software still growing quickly, or is everyone just replacing old systems?

Insurance software is still growing quickly, and the latest results suggest insurers are buying more than simple one-for-one replacements of old systems.

Guidewire is the clearest public example. Its fiscal 2026 revenue grew 23% to $1.475 billion, while annual recurring revenue grew 19% to roughly $1.24 billion. Subscription and support revenue jumped 33%.

Those are strong numbers for a company already deeply embedded in large insurers. They point to an active move toward cloud platforms, additional modules and newer pricing and AI products rather than a mature software category growing only with inflation.

Majesco offers another angle. The company reported more than $300 million of revenue in 2025 before acquisitions enlarged the group, while its AI and data revenue grew 55% year over year. It also said 95% of customers had moved onto its cloud.

The technology cycle is doing two things at once. Insurers are moving critical legacy systems into the cloud while adding newer software around data, pricing, workflow automation and AI. That gives vendors more room to expand inside an existing customer than a basic replacement cycle would.

Is AI actually creating a new InsurTech market?

AI is already creating new InsurTech revenue opportunities, although most of the money is appearing inside familiar insurance jobs such as underwriting, claims and operations.

Funding has shifted remarkably fast. Gallagher Re found that InsurTech companies raised $2.44 billion in the second quarter of 2026, the highest quarterly total in four years. AI-focused companies captured $2.42 billion of it across 95 deals, or 99.1% of all funding.

That number is extreme partly because large rounds can distort a single quarter. It does not mean 99% of insurance technology revenue is suddenly AI revenue.

The operating evidence is more interesting. CCC says large repair groups are expanding their use of its AI-powered estimating tools. One major customer now initiates 98% of repair estimates through CCC's Mobile Jumpstart product. Guidewire is putting AI deeper into its insurance platform, while specialist companies such as Akur8, hyperexponential, Cytora, Federato, Sixfold and Roots Automation are automating narrow insurance workflows.

Insurance work that used to require more manual processing is becoming addressable by software. That can enlarge the InsurTech market even if the underlying insurance premium barely changes.

If you want more recent data on this point, please see our latest InsurTech market report.

How big is the underwriting technology market today?

Underwriting technology is already a multi-billion-dollar part of InsurTech because insurers will pay heavily for tools that help them decide which risks to accept and what price to charge.

Verisk alone generated about $2.18 billion from underwriting-related products in 2025. Its products include insurance data, forms, loss costs, catastrophe models and other tools used when carriers price risk.

Around that large incumbent sits a growing specialist layer. hyperexponential sells pricing technology to specialty and commercial insurers. Akur8 focuses on actuarial pricing. Cytora helps commercial insurers process incoming risks. Federato builds underwriting workflow software, while CyberCube specializes in cyber-risk analytics.

These products sit unusually close to insurer economics. If better data or pricing software improves loss selection even slightly across a large book of business, the financial effect can dwarf the software bill.

That is why underwriting technology can support substantial vendor revenue without needing a consumer audience. The buyer sees the product directly in pricing speed, underwriting capacity and loss performance.

Is claims technology already a billion-dollar InsurTech business?

Claims technology is comfortably beyond the billion-dollar mark today, with several large vendors already operating at that scale or close to it.

CCC generated $1.057 billion of revenue in 2025 and now expects roughly $1.16 billion in 2026. Its network links insurers with repair facilities, automakers, parts suppliers and other participants in auto claims.

Verisk's claims products contributed roughly $893 million in 2025. Add claims modules from Guidewire and Duck Creek, plus specialists such as Snapsheet, Tractable, Shift Technology and Five Sigma, and the market quickly reaches several billion dollars.

There is also plenty left to automate. Claims still involve damage assessment, document review, fraud checks, repair decisions, medical information, payments and repeated communication with customers and suppliers.

Computer vision can estimate damage, AI can summarize complex claim files and workflow systems can decide which cases really need human attention. Claims is one of the clearest places where AI can turn insurance labor into software revenue.

How big has the MGA market become, and why does it matter for InsurTech?

The U.S. MGA market has become huge: Conning estimates around $128 billion of premium in 2025, with growth still running well ahead of the broader property-and-casualty market.

Conning's statutory dataset captured $102.6 billion of MGA direct premium, up 12% from 2024, while its wider estimate reaches approximately $128 billion after adding business that statutory filings do not fully capture.

AM Best independently measured $108.7 billion of direct premium sourced through MGAs and other delegated-underwriting businesses in 2025. That was up 17.8% from $92.3 billion the year before, compared with roughly 5% growth for the wider U.S. P&C industry.

The longer trajectory is just as striking. The U.S. program-business market was only a fraction of today's size a little over a decade ago. The growth has allowed specialist underwriting businesses to launch without building a full insurance carrier from scratch.

Technology helps make that model work. Modern MGAs can connect distribution, external capital, underwriting data and policy administration with far smaller teams than older insurance organizations.

We should still avoid crediting all MGA growth to technology. Specialty-market pricing, insurance capacity and changing carrier strategies have played major roles as well.

U.S. delegated-underwriting measure	Premium
Conning broader MGA estimate, 2025	~$128B
AM Best DUAE premium, 2025	$108.7B
Conning statutory MGA premium, 2025	$102.6B
AM Best DUAE premium, 2024	$92.3B
AM Best 2025 growth	+17.8%
Broader U.S. P&C 2025 growth	~5%
Conning statutory MGA 2025 growth	+12%

Do MGA and embedded-insurance premiums count as InsurTech revenue?

No. MGA and embedded-insurance premiums show how much insurance technology-enabled businesses can influence, while the revenue captured by the technology companies is much smaller.

This distinction fixes one of the biggest problems in InsurTech market sizing.

An MGA can control underwriting and distribution for hundreds of millions of dollars of premium while a carrier supplies the regulated balance sheet and reinsurers take much of the underlying risk. The MGA earns commissions, fees and sometimes profit commissions. Calling the full premium its technology revenue would exaggerate the business several times over.

Embedded insurance works similarly. McKinsey estimates that embedded insurance in Asia could reach around $270 billion of gross written premium by 2030. Much of that premium will still end up economically inside insurance carriers.

There is a genuine technology market underneath it. Qover, Cover Genius, bolttech and other platforms build the APIs, integrations, product infrastructure and distribution systems that make embedded coverage possible. Their revenues are the relevant number when we estimate InsurTech itself.

Premium volume remains useful because it tells us how much of insurance distribution is moving through these models. We just have to keep it in a separate column from technology revenue.

If you want more recent data on this point, please see our latest InsurTech market report.

Do digital insurers still matter to the InsurTech market?

Digital insurers still matter, but their experience has shown that selling insurance online does not turn insurance economics into software economics.

Companies such as Lemonade, Root and Hippo proved that insurance could be bought and serviced through much cleaner digital experiences. They also learned that claims, loss ratios, reinsurance, customer acquisition and regulatory capital remain just as real for an app-based insurer as for an older carrier.

That has changed how we should read their scale. A billion dollars of premium at a digital carrier does not compare directly with a billion dollars of recurring software revenue at an insurance technology vendor.

The distinction also explains why infrastructure companies can sometimes build more attractive economics. A software provider can sell to dozens or hundreds of insurers without putting its own balance sheet behind the policies.

Digital carriers are therefore one meaningful part of InsurTech, especially as laboratories for automation and new distribution. They stopped being a sensible proxy for the whole market several years ago.

Did the InsurTech funding crash actually shrink the market?

The InsurTech funding crash did not shrink demand for insurance technology; it wiped out a lot of weak startup financing while established software revenue and insurer IT spending kept growing.

Global InsurTech investment fell sharply after the 2021 peak. Gallagher Re measured only $4.25 billion in 2024. Funding then recovered 19.5% to $5.08 billion in 2025, the first annual increase since 2021.

The recovery has accelerated this year, but it looks very different from the old boom. CB Insights counted only 81 deals in the first quarter, the lowest quarterly total since 2016, even as median deal size reached a record $10 million. In the second quarter, funding rose to $2.4 billion across 107 deals, with six companies accounting for $1.7 billion through eight mega-rounds.

Gallagher Re found an even sharper concentration around AI: 99.1% of second-quarter funding went to AI-focused InsurTech companies, while early-stage funding actually fell by 51.8% from the previous quarter.

So investors are putting serious money back into insurance technology, but they are making fewer broad bets. Capital is clustering around companies with clearer AI stories, stronger commercial traction or enough scale to raise very large rounds.

Meanwhile, insurer technology spending is rising around 9% and major software vendors continue growing. Venture funding was always a poor way to measure the underlying market.

Funding measure	Amount / activity
Global InsurTech funding, 2024	$4.25B
Global InsurTech funding, 2025	$5.08B
2025 funding growth	+19.5%
Q1 2026 funding	~$1.6B
Q1 2026 deal count	81
Q1 2026 median deal size	$10M
Q2 2026 funding	~$2.4B
Q2 2026 deal count	107
Q2 funding going to AI-focused companies	99.1%

How much bigger is InsurTech than the venture-backed startup market?

The commercial InsurTech market is many times larger than annual venture funding because insurers buy technology from established vendors every year whether venture investors are excited about the category or not.

Compare the orders of magnitude. InsurTech companies raised roughly $5.1 billion in 2025. Global insurers are now expected to spend almost $257 billion on IT in a single year.

Those numbers measure different things, so we should not divide one mechanically by the other. The comparison simply shows how little annual startup financing tells us about customer spending.

The public and mature-vendor layer reinforces the point. Verisk generated more than $3 billion of revenue in 2025 by serving insurers. Guidewire generated almost $1.5 billion in its latest fiscal year. CCC is approaching $1.2 billion. Private insurance software companies add billions more.

A startup only needs to capture a narrow slice of one insurance workflow to become substantial. It does not have to replace an insurer, take over the whole claims process or win millions of retail customers.

This is why the infrastructure side of InsurTech can look boring from the outside while producing large recurring businesses.

Could OpenAI, Microsoft and other general AI companies swallow insurance software?

General AI companies will take part of the value chain, but insurance-specific data, systems and workflows give specialist InsurTech companies plenty of room to survive.

A large language model can summarize documents, extract information and automate conversations across many industries. Insurance buyers still need those capabilities connected to policy records, pricing rules, claims histories, regulatory requirements and proprietary risk data.

That gives existing insurance platforms a strong position. Guidewire sits inside core insurer workflows. Verisk owns huge insurance datasets and models. CCC connects a large claims network. Specialist startups can go much deeper into underwriting or claims than a horizontal model provider wants to go.

The market structure is already becoming visible. Insurers buy cloud and foundation models from horizontal providers, then use insurance-specific vendors to turn those capabilities into real underwriting, claims and servicing workflows.

Some generic software will disappear as AI features become commodities. Products with proprietary insurance data, difficult integrations or direct influence over underwriting economics should be much harder to displace.

Where is the biggest InsurTech opportunity right now?

The biggest InsurTech opportunity today sits in the operational machinery of insurance: core systems, underwriting, data, claims, broker infrastructure and AI automation.

Those workflows repeat across almost every policy. Someone has to price the risk, issue the policy, collect data, service the customer and handle the claim. Selling software into those recurring jobs gives vendors a much larger and steadier customer base than betting only on a new consumer insurance brand.

The economics are attractive too. Digital carriers need regulatory capital and ultimately absorb insurance risk. Infrastructure vendors can serve many insurers without taking that risk themselves.

Current revenue already shows what is possible. We have multiple insurance-specific technology businesses above $1 billion in annual sales, and newer companies are now targeting narrower pieces of the same stack rather than trying to recreate an entire insurer.

The next few years will be about how much previously manual insurance work becomes software. AI is moving that boundary quickly.

If you want more recent data on this point, please see our latest InsurTech market report.

How big is the InsurTech market beyond digital insurance?

InsurTech beyond digital insurance is already a tens-of-billions-of-dollars technology market, sitting inside roughly $257 billion of annual insurer IT spending and influencing far larger pools of insurance premium.

That is the clearest answer we can defend from the evidence today.

The hard revenue floor is already substantial. Verisk, Guidewire, CCC and Majesco alone contribute more than $6 billion annually. Once we add Duck Creek, Applied Systems, Vertafore, Insurity, Sapiens, claims platforms, pricing tools, catastrophe analytics, broker software, embedded-insurance infrastructure and hundreds of specialists, the total specialist market moves comfortably into the tens of billions.

Above it sits Gartner's $256.8 billion insurance IT budget. We should treat that as the broader pool from which specialist vendors can win spending rather than current InsurTech revenue.

A third layer measures influence rather than technology sales. U.S. MGAs already handle roughly $128 billion of premium under Conning's broad estimate. McKinsey expects embedded insurance in Asia alone to reach around $270 billion of premium by 2030. Those figures show how far technology-enabled models are reaching into insurance distribution and underwriting.

The scale of the underlying industry makes the opportunity easier to understand. Allianz Research estimates insurers collected €6.9 trillion of premiums globally in 2025. Specialist technology companies only need to capture a tiny percentage of the money spent operating that system to create very large businesses.

Our estimate is deliberately less spectacular than some market-research headlines. Current InsurTech revenue is probably measured in tens of billions, with a credible path to become much larger as insurers move more core systems, underwriting, claims and operational work into software.

Digital insurance is now only one corner of that market. The bigger business is increasingly the technology that lets the rest of the insurance industry run.