Insurance AI market to hit $154b by 2034  September 17th 2026

Insurance AI market to hit $154b by 2034

The global artificial intelligence (AI) in insurance market is projected to grow from $13.45b in 2026 to $154.39b by 2034, according to data from Fortune Business Insights.

The industry was valued at $10.36b in 2025 and is expected to expand at a compound annual growth rate of 35.7% over the forecast period.

North America dominated the sector in 2025, accounting for 39.96% of the global market share due to widespread adoption of digital insurance tools and advanced analytics.

AI Is Becoming An Insurance Board Issue

Increasingly, the AI being used may not have been developed by the insurer at all. That changes the governance conversation.

For the last several years, conversations about artificial intelligence in the boardroom have largely centered on opportunity: Where can organizations automate? Where can they reduce costs? How can AI improve the customer experience? And, inevitably, what are competitors doing?

Those remain important questions. But for insurance boards, there is a more fundamental question that needs to come first: Do we actually know everywhere AI is being used in the organization?

That sounds simple. It isn’t.

Artificial intelligence is no longer confined to a technology department or a handful of sophisticated modeling applications. In insurance, it can touch underwriting, pricing, claims, fraud detection, customer service, marketing, data analysis and other business processes. Increasingly, the AI being used may not have been developed by the insurer at all.

That changes the governance conversation.

Undeclared AI is becoming cyber insurance’s blind spot

Cyber insurance leaders are increasingly viewing AI as an extension of existing technology risk rather than a new category that requires its own insurance product. But while insurers are not yet convinced that AI warrants a standalone policy, the growing use of tools that businesses fail to declare is creating a significant visibility challenge for the market.

The issue was discussed during KYND’s Cyber Drop webinar on 1 September, which brought together senior cyber insurance figures to build on the InsurTech company’s white paper, The Wild West of AI Risk. The panel broadly agreed that AI-related exposures can currently sit within existing cyber and technology errors and omissions (E&O) policies. One panellist described AI as the next stage of technology risk. Companies developing AI systems themselves could be a different case, however, as they may require dedicated cover for the risks created by the systems they build rather than simply the risks associated with using third-party tools.

Navigating AI’s Mass Personalization Opportunity in Insurance

We live in an era of significant generational, operational and technological change.

The useful life of everything new seems shorter than it once was, even as emerging capabilities continue to impress consumers. Yet not everything old is positioned for mass extinction. Properly cared for, technologies that are a generation or more old can remain useful for a surprisingly long time. Managing this bifurcation in technology environments is one of the more significant challenges facing IT organizations and their leaders today.

Just because you can replace something doesn’t mean you should. And while AI can produce impressive outcomes, it is not a cure-all, despite the hype. In some cases, it can create bigger problems than the ones it solves. The challenge is to use new and emerging technology in the right way, to solve the right problems.

Customer engagement and experience development offer an instructive use case. Recently, while trying to expand coverage with a Tier 1 P&C carrier, I was confounded by its AI-driven interface. My questions were complicated, and the desired coverages spanned multiple products. The experience had been designed for a simple use case. As I later discovered, the only way to talk to a human was to say, “I want to lapse these policies.” Like magic, the experience changed. Too late. By then, I really did want to lapse them, having found a regional carrier that was more than happy to talk with me.

Rob McIsaac is the President and CEO of RPM Ventures NC, LLC

Insurers Are Ready to Hand Repeatable Work to AI, Just 6% Would Trust a General-Purpose Model to Do It

New research finds that 83% of the global insurance market would hand repeatable work to AI; 75% will only allow AI to execute the work with an insurance-specific or governed model. Less than 1% of the market runs fully AI-native operations today.

The insurance market is ready to hand repeatable operational work to AI so it can win business it is currently turning away. A full 83% of the market supports AI executing repeatable work. A further majority, 75%, would only allow AI execution with a model built for insurance or governed inside their own rules. Both findings come from a report published today by ISG, the global technology research and advisory firm, and commissioned by mea Platform.

The study draws on senior leaders across underwriting, operations, claims, technology and transformation. It covers 20 operational activities, from submission intake and triage to quote generation, bordereaux processing, claims adjudication and compliance screening, across North America, Europe and Asia.