Insurance outsourcing market set for 7.1% CAGR growth

Asia-Pacific is projected to record the fastest growth.

The global insurance outsourcing services market is expected to continue its steady expansion, rising from $9.22b in 2024 to $9.88b in 2025, according to The Business Research Company. 

This represents a compound annual growth rate (CAGR) of 7.1%. North America was the largest market in 2024, but Asia-Pacific is projected to record the fastest growth in the years ahead.

Growth is being driven by stricter insurance regulations, the increasing complexity of insurance products, and the industry’s ongoing shift toward digitalisation and cost-efficient operations.

Looking ahead, the market is forecast to reach $12.81b by 2029 at a CAGR of 6.7%. 

The expansion will be supported by insurers’ need to reduce turnaround times, improve flexibility, and enhance customer service. 

Demand is also rising for outsourcing providers that can offer multilingual support.

Key trends shaping the sector include automation tools, artificial intelligence applications, cloud-native platforms, and smart document processing. 

Digital transformation, particularly in online policy management and claims processing, is seen as a major factor boosting outsourcing demand.