Insurance AI market to hit $154b by 2034

The research expects insurers to accelerate automation across claims, underwriting and customer service.

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.

Insurers are deploying AI technologies to modernise legacy systems, automate routine workflows, and lower operational costs.

Key adoption drivers include claims processing, underwriting accuracy, fraud detection, and customer service. 

Machine learning algorithms analyse historical claims data and behavioural patterns to identify anomalies and reduce fraud, whilst conversational AI systems and virtual assistants deliver automated policy updates and customer support.