Insurance IT market posts 11.6% growth in 2025

Looking ahead, the market is projected to reach $514.5b by 2029.

The global insurance information technology (IT) spending market is expected to grow rapidly in the coming years, rising from $301.7b in 2024 to $336.6b in 2025, a year-on-year increase of 11.6%. 

The Business Research Company attributed this growth to regulatory compliance pressures, inefficiencies in manual processes, rising data volumes, increasing demand for customised insurance products, and the early adoption of online policy platforms.

Looking ahead, the market is projected to reach $514.5b by 2029, representing a compound annual growth rate (CAGR) of 11.2%. 

Growth will be driven by the push for seamless digital claims processes, wider adoption of usage-based insurance models, the use of telematics in underwriting, fraud reduction via live detection systems, and the rise of embedded insurance distribution.