Global Generative AI in Insurance Market Size, Share, Growth Analysis, By Deployment (Cloud-based, On-premises), By Technology (Machine Learning, Natural Language Processing), By Application (Fraud Detection and Credit Analysis, Customer Profiling and Segmentation,), By Region -Industry Forecast 2025-2032
Report ID:
SQMIG45A2380 |
Region:
Global |
Published Date: December, 2024
Pages:
203
|Tables:
0
|Figures:
0
Generative AI in Insurance Market Insights
Generative AI in Insurance Market size was valued at USD 547.78 Million in 2023 and is poised to grow from USD 729.1 Million in 2024 to USD 8064.95 Million by 2032, growing at a CAGR of 33.1% during the forecast period (2025-2032).
Rising emphasis on improving operational efficiency and customer experience in the insurance industry is projected to bolster the demand for generative AI (artificial intelligence) in insurance over the coming years. Advancements in generative AI technology and increasing investments in the research and development of novel AI models for insurance applications are also expected to benefit market development in the future. Emphasis on improving customer support and experience is also forecasted to benefit the global generative AI in insurance market outlook through 2031. Rising demand for providing personalized and customized insurance policies and solutions for customers is also slated to bolster the adoption of generative AI in insurance companies. Use of chatbots and AI assistants in customer support for insurance is also slated to present new opportunities for generative AI in insurance companies going forward. On the contrary, data privacy and security concerns, high costs of implementation, lack of trust and transparency, and limited availability of skilled workforce are expected to be key restraints for generative AI in insurance industry across the forecast period and beyond.
Market snapshot - (2024-2031)
Global Market Size
Largest Segment
Fastest Growth
Growth Rate
CAGR
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Generative AI in Insurance Market Segmental Analysis
The global generative AI in insurance market is segmented based on deployment, application, technology, and region. Based on deployment, the market is bifurcated into cloud-based and on-premises. In terms of application, the market is segmented into fraud detection and credit analysis, customer profiling and segmentation, product and policy design, underwriting and claims assessment, chatbots, and others. Based on technology, the market is divided into machine learning, natural language processing, and others. Based on region, the market is segmented into Asia Pacific, North America, Latin America, Europe, and the Middle East and Africa.
Analysis by Technology
Machine learning is projected to account for a substantial chunk of the global generative AI in insurance market share. Generative AI models are trained using machine learning algorithms, which makes them an unmissable technology for this industry. Machine learning technology also plays a crucial role in enhancing the efficiency of cognitive and generative capabilities of generative AI models used in insurance. Increasing emphasis on training generative AI models on extensive datasets to improve their capabilities is also forecasted to bolster the dominance of this segment going forward. Better decision-making capabilities of generative AI models are also largely dependent on machine learning technology.
Meanwhile, the demand for natural language processing (NLP) technologies is projected to surge at an impressive pace across the study period and beyond. Growing efforts to improve conversational capabilities of generative AI models to enhance human interactions are expected to help this segment generate new opportunities in the future. This technology plays a crucial role in understanding human language and generating outputs in the same, thereby making it essential for chatbots and interactive assistants. Advancements in natural language processing technologies are slated to offer new business opportunities for generative AI providers for insurance companies.
Analysis by Deployment
The cloud-based segment is forecasted to account for the largest generative AI in insurance market share in the future. Increasing adoption of cloud technologies in the BFSI (banking, financial services, insurance) industry and advancements in cloud technologies are contributing to the dominance of this segment. Low costs of operation and high scalability of cloud-based models are key benefits of cloud-based generative AI for insurance applications. Rising emphasis of insurance companies to reduce their operational expenses and improve productivity are also expected to create new opportunities for market players via this segment through 2031.
Meanwhile, on-premises deployment of generative AI in insurance is expected to increase at a rapid CAGR across the study period and beyond. The growing emphasis of insurance companies on keeping their data private and secure is forecasted to create new opportunities for generative AI in insurance companies in the future. Large insurance companies with high spending potential are more inclined to opt for on-premises deployment of generative AI models as it requires substantial investments in resources and infrastructure. On-premises deployment is known to save money for insurance organizations in the long term.
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Generative AI in Insurance Market Regional Insights
North America is forecasted to account for a high share of the global generative AI in insurance industry going forward. The presence of leading insurance companies, rapid adoption of advanced technologies, and growing digitization of the financial services industry are slated to bolster the demand for generative AI in insurance in North America. Growing emphasis on providing personalized and custom insurance services is also expected to bolster the adoption of generative AI models in insurance companies of this region. The United States is slated to lead revenue generation in this region followed by Canada in the long run.
Asia Pacific is forecasted to emerge as the fastest expanding market for generative AI in insurance in the world. Growing need for insurance policies in this region, rising demand for cost-effective insurance policies, and increasing adoption of generative AI are all expected to create new opportunities for market players in this region. The launch of new digital transformation initiatives by governments and rise of digital finance and banking are also slated to benefit market growth going forward. India, China, and Japan are forecasted to emerge as the most opportune markets in this region through 2031.
- Largest
- Fastest
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Generative AI in Insurance Market Dynamics
Drivers
Emphasis on Streamlining Insurance Operations
- Insurance companies are focusing on streamlining their operations to maximize their business scope and revenue generation in the future. Insurance providers are focusing on automation of claims processing and underwriting processes through the use of generative AI models. Improved service delivery and operational expense reduction are also key benefits of generative AI adoption in insurance.
Demand for Improved User Experience
- Generative AI models and AI assistants are being extensively used in the insurance industry to enhance customer experience and improve customer support capabilities as well. Generative AI models can analyze customer data and draft policies that align closely with individual needs, enhancing customer satisfaction and retention in the long run.
Restraints
Data Privacy and Security Concerns
- Insurance companies handle sensitive and personal data of their customers and deploying generative AI models with access to such critical data becomes a serious concern for many insurance companies. Maintaining compliance with data privacy and security regulations becomes a challenge thereby impeding generative AI in insurance market growth potential as well.
Lack of Trust and Transparency
- The decision-making process of artificial intelligence models is still quite unclear and this lack of trust and transparency in decision-making is projected to hinder the adoption of generative AI in insurance going forward. This lack of transparency and trust is especially troubling for sensitive financial matters thereby slowing down its adoption in the future.
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Generative AI in Insurance Market Competitive Landscape
Developing and training generative AI models on specific insurance data to maximize their efficacy and accuracy should be the prime focus of generative AI in insurance companies going forward. Overcoming the issues of transparency and trust while maintaining data privacy is expected to be crucial for all market players. Targeting developed countries with high digitization is slated to be more opportune for generative AI in insurance providers in the long run.
Top Player’s Company Profiles
- Microsoft Corporation
- Amazon Web Services Inc.
- IBM Corporation
- Avaamo Inc
- Cape Analytics LLC
- MetLife
- Prudential Financial
- Wipro Limited
- ZhongAn
- Acko General Insurance
Recent Developments
- In November 2024, Canara HSBC Life Insurance, a leading life insurance company in India announced the launch of its new generative AI solution. OmniGen AI is projected to optimize risk evaluation and underwriting for the insurance company and improve the overall experience for its customers.
- In May 2024, Wipro, a renowned technology company in India announced its collaboration with Microsoft to launch new cognitive assistants for financial services powered by generative AI. Wipro GenAI Investor Intelligence, Wipro GenAI Investor Onboarding, and Wipro GenAI Loan Origination were launched.
- In October 2024, BMO Insurance, a leading insurance organization based in Canada announced the launch of a new AI assistant to simply field underwriting process for life insurance advisors.
Generative AI in Insurance Key Market Trends
- Personalization and Customization: Insurance companies are projected to leverage generative AI to provide customized and personalized services and user experience for their customers. This is expected to create new opportunities for insurers looking to provide on-demand insurance policies that cater to the diverse needs of modern customers.
- Use of Hybrid Operations: Generative AI in insurance companies are projected to focus on developing hybrid operating models for generative AI in insurance where human expertise is blended with AI to provide oversight and improve trust in these models. This generative AI in insurance market trend is expected to provide the much-needed balance for generative AI models being used in the insurance industry.
Generative AI in Insurance Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, growing emphasis on improving operational efficiency and customer experience in insurance companies is projected to bolster generative AI in insurance market growth in the future. However, high costs of implementation and lack of trust and transparency are estimated to impede the demand for generative AI in insurance over the coming years. North America is slated to account for a substantial share of the global generative AI in insurance demand outlook owing to the presence of key insurance companies and rapid adoption of AI technologies. Generative AI providers for insurance companies are expected to focus on personalization and customization to maximize their business scope in the long run.
| Report Metric | Details |
|---|---|
| Market size value in Insurance | USD 366.46 Million |
| Market size value in 2031 | USD 6059.32 Million |
| Growth Rate | 33.1% |
| Base year | 2023 |
| Forecast period | (2024-2031) |
| Forecast Unit (Value) | USD Million |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Generative AI in Insurance Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Generative AI in Insurance Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Generative AI in Insurance Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Generative AI in Insurance Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Generative AI in Insurance Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Generative AI in Insurance Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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