Generative AI in insurance to hit $14.4b by 2032

Asia-Pacific is projected to grow the fastest, at a CAGR of 38.1%.

The global generative artificial intelligence (AI) in insurance market is projected to grow from $761.4m in 2022 to $14.4b by 2032, according to a report by Allied Market Research. 

This represents a compound annual growth rate (CAGR) of 34.4% from 2023 to 2032.

Regionally, North America led the market in 2022, making up nearly 40% of global revenue.

Asia-Pacific is projected to grow the fastest, at a CAGR of 38.1%, driven by increasing insurance adoption and demand for AI-based automation in emerging markets.

Global growth is being driven by faster claims processing, improved customer service, and more accurate risk assessment. 

Emerging technologies such as explainable AI and advanced risk modelling are also expected to create new market opportunities.

The solution segment accounted for over two-thirds of the market in 2022 and is expected to remain dominant. 

However, the service segment is forecast to grow faster, at a CAGR of 36.5%, as insurers increase their use of AI-powered analytics for policy recommendations.

Amongst technologies, generative adversarial networks (GANs) led in 2022 due to their use in synthetic data generation. 

Diffusion networks, capable of modeling complex time-based data, are expected to post the highest CAGR of 38.6%.

Automated underwriting held the largest share by application, streamlining risk assessment through AI-driven decision-making. 

Virtual assistants and customer support are expected to grow the fastest, at a CAGR of 41.7%, as insurers expand real-time digital services.