GITNUXREPORT 2025

Insurtech Industry Statistics

Insurtech industry rapidly grows with innovation, digital transformation, and increased investments.

Jannik Linder

Co-Founder of Gitnux, specialized in content and tech since 2016.

First published: April 29, 2025

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Statistic 1

65% of insurance consumers prefer digital channels for purchasing policies

Statistic 2

Mobile insurance sales have increased by 150% over the past three years

Statistic 3

Nearly 70% of millennials prefer to buy insurance online

Statistic 4

55% of customers are willing to share data if it leads to personalized insurance premiums

Statistic 5

Customer retention rates for digital-first insurers are approximately 10% higher than traditional insurers

Statistic 6

The global insurtech market is projected to reach $1.5 trillion by 2030

Statistic 7

Insurtech funding reached $5.8 billion in 2022

Statistic 8

The U.S. insurtech market accounts for approximately 35% of global insurtech investments

Statistic 9

Peer-to-peer insurtech platforms now make up roughly 10% of the digital insurance market

Statistic 10

Insurtech investment dropped by 15% in Q1 2023 compared to Q4 2022

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The Asia-Pacific insurtech market is projected to grow at a CAGR of 53% through 2028

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Insurtech startups with SaaS platforms account for 40% of total funding in the industry

Statistic 13

The global insurtech autonomous claims processing market is forecasted to reach $2.1 billion by 2026

Statistic 14

blockchain-based insurance contracts are expected to increase by 60% within the next three years

Statistic 15

The global parametric insurance market is projected to reach $50 billion by 2027

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The share of insurtech investments in Europe grew by 40% in 2022

Statistic 17

Fintech and insurtech collaborations increased by 60% between 2020 and 2022

Statistic 18

The global market for digital insurance distribution is expected to reach $650 billion by 2028

Statistic 19

The presence of global insurtech accelerators increased by 50% from 2019 to 2023

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The number of insurtech VC deals increased by 25% in 2023 compared to 2022

Statistic 21

The total value of insurtech mergers and acquisitions reached $9 billion in 2022

Statistic 22

The number of insurtech partnerships with financial service providers grew by 45% from 2020 to 2022

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Cybersecurity concerns hindered 30% of digital insurance implementations in 2022

Statistic 24

Digital identity verification solutions account for 45% of insurtech fraud prevention strategies

Statistic 25

Over 60% of insurance startups are focused on digital distribution channels

Statistic 26

The number of insurtech startups worldwide exceeded 2,300 in 2023

Statistic 27

The average age of insurance tech entrepreneurs is 38 years old

Statistic 28

The average payout for an insurtech startup exit was $150 million in 2022

Statistic 29

Major insurance firms spend up to 20% of their IT budget on insurtech innovations

Statistic 30

Digital-only insurance providers are growing at a rate of 25% annually

Statistic 31

The global insurtech employee count increased by 55% from 2021 to 2023

Statistic 32

Insurtechs focusing on health insurance represent about 25% of total startups in the industry

Statistic 33

The average cost reduction attributed to insurtech innovations in claims processing is estimated at 23%

Statistic 34

Insurtech companies developing climate-related insurance products grew by 35% in 2022

Statistic 35

The volume of insurtech-related patents filed increased by 20% in 2022

Statistic 36

The average age of insurtech funding rounds in 2022 was 7 years, indicating investor willingness to fund mature startups

Statistic 37

Insurtech startups focusing on micro-insurance services saw a growth rate of 38% in 2022

Statistic 38

AI-powered insurance claims processing can reduce claims handling time by up to 50%

Statistic 39

The adoption rate of telematics in auto insurance has increased by over 200% since 2019

Statistic 40

45% of insurance firms consider digital transformation their top strategic priority

Statistic 41

The global use of blockchain in insurance is expected to grow at a CAGR of 48% from 2022 to 2027

Statistic 42

Usage of big data analytics in insurance claims can improve fraud detection rates by up to 60%

Statistic 43

About 28% of insurance companies have implemented AI chatbots for customer service

Statistic 44

By 2025, 80% of insurance sales are expected to be generated digitally

Statistic 45

Usage of IoT devices in home insurance policies grew by 120% from 2018 to 2022

Statistic 46

Use of AI for underwriting processes increases underwriting accuracy by approximately 35%

Statistic 47

The adoption of digital claims management platforms soared by 80% from 2020 to 2023

Statistic 48

The use of drones in property inspection insurtech applications increased by 150% between 2019 and 2023

Statistic 49

The integration of wearables in health insurance policies has increased adopted by 70% since 2020

Statistic 50

40% of new insurance policies issued in 2023 were done via digital platforms

Statistic 51

Machine learning algorithms are used in 35% of all insurance risk assessments

Statistic 52

The adoption of cloud computing in insurance companies increased by 45% from 2019 to 2023

Statistic 53

The percentage of insurance claims processed via automated systems increased to 40% in 2023

Statistic 54

The use of digital ecosystems in insurance is projected to grow at a CAGR of 46% from 2023 to 2028

Statistic 55

The rate of insurance policy cancellations decreased by 12% after digital transformation initiatives

Statistic 56

Digital customer onboarding accounts for over 70% of new policy sales

Statistic 57

The adoption of advanced data analytics in underwriting led to a 20% reduction in underwriting cycle times

Statistic 58

The use of chatbots for policy management increased by 50% from 2021 to 2023

Statistic 59

The percentage of insurance premiums generated through digital channels is expected to reach 65% by 2025

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Sources

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Key Highlights

The global insurtech market is projected to reach $1.5 trillion by 2030
Insurtech funding reached $5.8 billion in 2022
Over 60% of insurance startups are focused on digital distribution channels
The number of insurtech startups worldwide exceeded 2,300 in 2023
The U.S. insurtech market accounts for approximately 35% of global insurtech investments
AI-powered insurance claims processing can reduce claims handling time by up to 50%
The adoption rate of telematics in auto insurance has increased by over 200% since 2019
45% of insurance firms consider digital transformation their top strategic priority
Peer-to-peer insurtech platforms now make up roughly 10% of the digital insurance market
The global use of blockchain in insurance is expected to grow at a CAGR of 48% from 2022 to 2027
The average age of insurance tech entrepreneurs is 38 years old
65% of insurance consumers prefer digital channels for purchasing policies
Insurtech investment dropped by 15% in Q1 2023 compared to Q4 2022

The insurtech industry is booming, with projections to reach $1.5 trillion by 2030 and over 2,300 startups globally in 2023, driven by rapid digital adoption, innovative technologies like AI and blockchain, and shifting customer preferences towards online and personalized insurance solutions.

Consumer Behavior and Preferences

65% of insurance consumers prefer digital channels for purchasing policies
Mobile insurance sales have increased by 150% over the past three years
Nearly 70% of millennials prefer to buy insurance online
55% of customers are willing to share data if it leads to personalized insurance premiums
Customer retention rates for digital-first insurers are approximately 10% higher than traditional insurers

Consumer Behavior and Preferences Interpretation

These statistics reveal that digital-savvy consumers are revolutionizing the insurance industry, demanding convenience and personalization, and rewarding insurers who embrace technology with higher retention and engagement.

Market Size and Investment Trends

The global insurtech market is projected to reach $1.5 trillion by 2030
Insurtech funding reached $5.8 billion in 2022
The U.S. insurtech market accounts for approximately 35% of global insurtech investments
Peer-to-peer insurtech platforms now make up roughly 10% of the digital insurance market
Insurtech investment dropped by 15% in Q1 2023 compared to Q4 2022
The Asia-Pacific insurtech market is projected to grow at a CAGR of 53% through 2028
Insurtech startups with SaaS platforms account for 40% of total funding in the industry
The global insurtech autonomous claims processing market is forecasted to reach $2.1 billion by 2026
blockchain-based insurance contracts are expected to increase by 60% within the next three years
The global parametric insurance market is projected to reach $50 billion by 2027
The share of insurtech investments in Europe grew by 40% in 2022
Fintech and insurtech collaborations increased by 60% between 2020 and 2022
The global market for digital insurance distribution is expected to reach $650 billion by 2028
The presence of global insurtech accelerators increased by 50% from 2019 to 2023
The number of insurtech VC deals increased by 25% in 2023 compared to 2022
The total value of insurtech mergers and acquisitions reached $9 billion in 2022
The number of insurtech partnerships with financial service providers grew by 45% from 2020 to 2022

Market Size and Investment Trends Interpretation

Despite a brief dip in early 2023, the insurtech industry is clearly on a high-speed trajectory toward a $1.5 trillion global market, as innovation accelerates with SaaS-led funding, blockchain leaps, and cross-industry collaborations—reminding us that in the rapidly evolving world of digital insurance, staying still is the real risk.

Regulatory, Security, and Operational Aspects

Cybersecurity concerns hindered 30% of digital insurance implementations in 2022
Digital identity verification solutions account for 45% of insurtech fraud prevention strategies

Regulatory, Security, and Operational Aspects Interpretation

With cybersecurity concerns stalling nearly a third of digital insurance rollouts in 2022 and nearly half of fraud prevention hinging on digital identity checks, the insurtech industry is proving that in the pursuit of innovation, securing the digital frontier is not just smart—it's essential.

Startups, Innovation, and Business Models

Over 60% of insurance startups are focused on digital distribution channels
The number of insurtech startups worldwide exceeded 2,300 in 2023
The average age of insurance tech entrepreneurs is 38 years old
The average payout for an insurtech startup exit was $150 million in 2022
Major insurance firms spend up to 20% of their IT budget on insurtech innovations
Digital-only insurance providers are growing at a rate of 25% annually
The global insurtech employee count increased by 55% from 2021 to 2023
Insurtechs focusing on health insurance represent about 25% of total startups in the industry
The average cost reduction attributed to insurtech innovations in claims processing is estimated at 23%
Insurtech companies developing climate-related insurance products grew by 35% in 2022
The volume of insurtech-related patents filed increased by 20% in 2022
The average age of insurtech funding rounds in 2022 was 7 years, indicating investor willingness to fund mature startups
Insurtech startups focusing on micro-insurance services saw a growth rate of 38% in 2022

Startups, Innovation, and Business Models Interpretation

With over 2,300 insurtech startups worldwide, primarily led by savvy 38-year-olds targeting digital channels—where companies allocate up to 20% of their IT budgets—the industry is rapidly evolving into a $150 million exit playground, fueling a 55% employee surge and a patent boom, especially in health and climate-focused micro-insurances growing at double-digit rates—proving that the future of insurance is as digital, disruptive, and mature as the entrepreneurs fueling it.

Technology Adoption and Digital Transformation

AI-powered insurance claims processing can reduce claims handling time by up to 50%
The adoption rate of telematics in auto insurance has increased by over 200% since 2019
45% of insurance firms consider digital transformation their top strategic priority
The global use of blockchain in insurance is expected to grow at a CAGR of 48% from 2022 to 2027
Usage of big data analytics in insurance claims can improve fraud detection rates by up to 60%
About 28% of insurance companies have implemented AI chatbots for customer service
By 2025, 80% of insurance sales are expected to be generated digitally
Usage of IoT devices in home insurance policies grew by 120% from 2018 to 2022
Use of AI for underwriting processes increases underwriting accuracy by approximately 35%
The adoption of digital claims management platforms soared by 80% from 2020 to 2023
The use of drones in property inspection insurtech applications increased by 150% between 2019 and 2023
The integration of wearables in health insurance policies has increased adopted by 70% since 2020
40% of new insurance policies issued in 2023 were done via digital platforms
Machine learning algorithms are used in 35% of all insurance risk assessments
The adoption of cloud computing in insurance companies increased by 45% from 2019 to 2023
The percentage of insurance claims processed via automated systems increased to 40% in 2023
The use of digital ecosystems in insurance is projected to grow at a CAGR of 46% from 2023 to 2028
The rate of insurance policy cancellations decreased by 12% after digital transformation initiatives
Digital customer onboarding accounts for over 70% of new policy sales
The adoption of advanced data analytics in underwriting led to a 20% reduction in underwriting cycle times
The use of chatbots for policy management increased by 50% from 2021 to 2023
The percentage of insurance premiums generated through digital channels is expected to reach 65% by 2025

Technology Adoption and Digital Transformation Interpretation

As insurtech accelerates into the digital age—from a 200% surge in telematics adoption to an expected 65% of premiums flowing through digital channels by 2025—industry leaders realize that embracing AI, blockchain, and IoT isn't just about staying afloat but about underwriting with precision, claims processing at half the time, and customers happily booking policies faster than ever before.